EXHIBIT 99.3

AGRIUM INC.

2015

AUDITED ANNUAL FINANCIAL

STATEMENTS AND NOTES



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FINANCIAL STATEMENTS AND NOTES

February 24, 2016

TABLE OF CONTENTS



|                                                                  |  |                                                           |    |  |     | 
|----------------------------------------------------------------- |  | --------------------------------------------------------- | -- |  | --- | 
|Financial Reporting Responsibilities                              |  |                                                           | 86 | 
|Managements Report on Internal Control over Financial Reporting  |  |                                                           | 86 | 
|Report of Independent Registered Public Accounting Firm           |  |                                                           | 87 | 
|Independent Auditors Report of Registered Public Accounting Firm |  |                                                           | 88 | 
|Consolidated Statements of Operations                             |  |                                                           | 89 | 
|Consolidated Statements of Comprehensive Income                   |  |                                                           | 90 | 
|Consolidated Balance Sheets                                       |  |                                                           | 91 | 
|Consolidated Statements of Cash Flows                             |  |                                                           | 92 | 
|Consolidated Statements of Shareholders Equity                   |  |                                                           | 93 | 
|Notes to the Consolidated Financial Statements                    |  |                                                           | 94 | 
|General Information                                               |  |                                                           |    | 
|1.                                                                |  | Corporate Management                                      |    |  | 94  | 
|Segment Operations and Management                                 |  |                                                           |    | 
|2.                                                                |  | Operating Segments                                        |    |  | 96  | 
|3.                                                                |  | Capital Management                                        |    |  | 98  | 
|4.                                                                |  | Risk Management                                           |    |  | 99  | 
|Detailed Information on Financial Performance                     |  |                                                           |    | 
|5.                                                                |  | Expenses                                                  |    |  | 105 | 
|6.                                                                |  | Finance Costs                                             |    |  | 105 | 
|7.                                                                |  | Income Taxes                                              |    |  | 106 | 
|8.                                                                |  | Post-employment Benefits                                  |    |  | 107 | 
|9.                                                                |  | Share-based Payments                                      |    |  | 111 | 
|Detailed Information on Financial Position                        |  |                                                           |    | 
|10.                                                               |  | Cash Flow Information                                     |    |  | 113 | 
|11.                                                               |  | Accounts Receivable                                       |    |  | 113 | 
|12.                                                               |  | Inventories                                               |    |  | 114 | 
|13.                                                               |  | Property, Plant and Equipment                             |    |  | 114 | 
|14.                                                               |  | Intangibles and Goodwill                                  |    |  | 115 | 
|15.                                                               |  | Investments in Associates and Joint Ventures              |    |  | 117 | 
|16.                                                               |  | Other Assets                                              |    |  | 119 | 
|17.                                                               |  | Debt                                                      |    |  | 120 | 
|18.                                                               |  | Accounts Payable                                          |    |  | 121 | 
|19.                                                               |  | Other Provisions                                          |    |  | 121 | 
|20.                                                               |  | Other Liabilities                                         |    |  | 121 | 
|Other Disclosures                                                 |  |                                                           |    | 
|21.                                                               |  | Business Acquisitions                                     |    |  | 122 | 
|22.                                                               |  | Commitments                                               |    |  | 122 | 
|23.                                                               |  | Contingent Liabilities                                    |    |  | 123 | 
|24.                                                               |  | Accounting Policies, Judgments, Assumptions and Estimates |    |  | 124 | 



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 85



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Financial Reporting Responsibilities



|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |  |                                                                                                                                                                                                                                                                        
|-------------------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Party                |  | Responsibility for financial reporting                                                                                                                                                                                                                                                                                                                                                                                                                          
|Board of Directors   |  | Reviews and approves the annual consolidated financial statements and notes and related Managements Discussion and Analysis contained in this Annual Report. The Board appoints the Audit Committee to carry out this
responsibility on its behalf.                                                                                                                                                                                                            
|                     | 
|Audit Committee      |  | Oversees Agriums accounting and financial reporting processes and audits of its financial statements.
 Recommends approval of the annual consolidated financial statements to the Board.
 Considers, for review by the Board and approval by the shareholders, appointment of the independent
auditors; reviews and approves the terms of the auditors engagement as well as the fee, scope and timing of their services; evaluates the auditors performance.
|                     | 
|Management           |  | Prepares (a) financial statements in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board, and (b) the information in the accompanying Managements
Discussion and Analysis, and ensures that it is consistent with the consolidated financial statements.                                                                                                                                     
|                     | 
|                     |  | As disclosed in note 24 to the annual financial statements:                                                                                                                                                                                                                                                                                                                                                                                                     
|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                     |  | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Makes reasonable estimates and judgments as an essential part of the preparation of financial statements; and                                                                                                                                                          
|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                     |  | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Considers alternative accounting methods and chooses those it considers most appropriate in the circumstances.                                                                                                                                                         
|                     | 
|                     |  | Establishes and maintains 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.                                                                                                                                                                                                                                                                                 
|                     | 
|Independent Auditors |  | On behalf of the shareholders, KPMG LLP, an independent registered public accounting firm, as stated in their reports, which are included in this 2015 Annual Report:                                                                                                                                                                                                                                                                                           
|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                     |  | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Audits the annual consolidated financial statements as at and for the years ended December 31, 2015 and 2014, in accordance with Canadian generally accepted auditing standards and the standards of the Public Company Accounting
Oversight Board (United States); and
|                     |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|                     |  | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                |  | Audits the effectiveness of internal control over financial reporting as of December 31, 2015 in accordance with the standards of the Public Company Accounting Oversight Board (United States) based on the criteria described
below.                                 

The Audit Committee is comprised entirely of independent directors. The auditors have full and unrestricted access to the Audit Committee
and may meet with or without the presence of management.

Managements Report on Internal Control over
Financial Reporting

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 generally accepted accounting principles.

Under our supervision and with the
participation of management, 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 (COSO) in Internal Control  Integrated Framework (2013).Based on this evaluation, management concluded that as of December 31, 2015, Agrium Inc. did maintain effective
internal control over financial reporting.



|                                    |  |  |  |                                                 |  | 
|----------------------------------- |  |  |  | ----------------------------------------------- |  | 
|LOGO                                |  |  |  | LOGO                                            |  | 
|Chuck Magro                         |  |  |  | Steve Douglas                                   |  | 
|President & Chief Executive Officer |  |  |  | Senior Vice President & Chief Financial Officer |  | 
|February 24, 2016                   |  |  |  |                                                 |  | 



|   |  |                          
|-- |  | -------------------------
|86 |  | AGRIUM ANNUAL REPORT
2015



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Report of Independent Registered Public Accounting Firm

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF AGRIUM INC.

We
have audited Agrium Inc.s internal control over financial reporting as of December 31, 2015, based on criteria established in Internal Control  Integrated Framework (2013) issued by the Committee of Sponsoring
Organizations of the Treadway Commission (COSO). Agrium Inc.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 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 conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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 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.

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.

In our opinion, Agrium Inc. maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2015, 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 Canadian generally accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United
States), the consolidated balance sheets of Agrium Inc. as at December 31, 2015, and December 31, 2014, and the related consolidated statements of operations, comprehensive income, cash flows and shareholders equity for the years
then ended, and our report dated February 24, 2016, expressed an unmodified (unqualified) opinion on those consolidated financial statements.



LOGO

Chartered Accountants

February 24,
2016

Calgary, Canada



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 87



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Independent Auditors Report of Registered Public Accounting
Firm

TO THE BOARD OF DIRECTORS AND SHAREHOLDERS OF AGRIUM INC.

We have audited the accompanying consolidated financial statements of Agrium Inc., which comprise the consolidated balance sheets as at December 31, 2015 and
December 31, 2014, the consolidated statements of operations, comprehensive income, cash flows and shareholders equity for the years then ended, and notes, comprising a summary of significant accounting policies and other explanatory
information.

Managements Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with International Financial Reporting
Standards as issued by the International Accounting Standards Board, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether
due to fraud or error.

Auditors Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally
accepted auditing standards and the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about
whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error.
In making those risk assessments, we consider internal control relevant to the companys preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances.
An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained in our audits is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated
financial statements present fairly, in all material respects, the consolidated financial position of Agrium Inc. as at December 31, 2015 and December 31, 2014, and its consolidated financial performance and its consolidated cash flows for
the years then ended in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board.

Other Matter

We also have audited, in accordance
with the standards of the Public Company Accounting Oversight Board (United States), Agrium Inc.s internal control over financial reporting as of December 31, 2015, based on the criteria established in Internal Control 
Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated February 24, 2016, expressed an unmodified (unqualified) opinion on the effectiveness of Agrium
Inc.s internal control over financial reporting.



LOGO

Chartered Accountants

February 24,
2016

Calgary, Canada



|   |  |                          
|-- |  | -------------------------
|88 |  | AGRIUM ANNUAL REPORT
2015



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Consolidated Statements of Operations



|                                                                                                                   |  |       |      |  |      |  |        |      |  |  |        | 
|------------------------------------------------------------------------------------------------------------------ |  | ----- | ---- |  | ---- |  | ------ | ---- |  |  | ------ | 
|Years ended December 31,                                                                                           |  |       |      |  |      |  |        |      | 
|(millions of U.S. dollars, unless otherwise stated)                                                                |  | Notes |      |  | 2015 |  |        | 2014 | 
|Sales                                                                                                              |  |       |      |  |      |  | 14,795 |      |  |  | 16,042 | 
|Cost of product sold                                                                                               |  |       | 5    |  |      |  | 10,907 |      |  |  | 12,490 | 
|Gross profit                                                                                                       |  |       |      |  |      |  | 3,888  |      |  |  | 3,552  | 
|Expenses                                                                                                           |  |       |      |  |      |  |        |      |  |  |        | 
|Selling                                                                                                            |  |       | 5    |  |      |  | 1,921  |      |  |  | 2,048  | 
|General and administrative                                                                                         |  |       | 5    |  |      |  | 268    |      |  |  | 299    | 
|Share-based payments                                                                                               |  |       | 5, 9 |  |      |  | 51     |      |  |  | 50     | 
|Loss (earnings) from associates and joint ventures                                                                 |  |       | 15   |  |      |  | 4      |      |  |  | (23)   | 
|Other expenses                                                                                                     |  |       | 5    |  |      |  | 28     |      |  |  | 18     | 
|Earnings before finance costs and income taxes                                                                     |  |       |      |  |      |  | 1,616  |      |  |  | 1,160  | 
|Finance costs related to long-term debt                                                                            |  |       | 6    |  |      |  | 181    |      |  |  | 62     | 
|Other finance costs                                                                                                |  |       | 6    |  |      |  | 71     |      |  |  | 70     | 
|Earnings before income taxes                                                                                       |  |       |      |  |      |  | 1,364  |      |  |  | 1,028  | 
|Income taxes                                                                                                       |  |       | 7    |  |      |  | 376    |      |  |  | 230    | 
|Net earnings from continuing operations                                                                            |  |       |      |  |      |  | 988    |      |  |  | 798    | 
|Net loss from discontinued operations                                                                              |  |       |      |  |      |  |       |      |  |  | (78)   | 
|Net earnings                                                                                                       |  |       |      |  |      |  | 988    |      |  |  | 720    | 
|Attributable to                                                                                                    |  |       |      |  |      |  |        |      |  |  |        | 
|Equity holders of Agrium                                                                                           |  |       |      |  |      |  | 988    |      |  |  | 714    | 
|Non-controlling interest                                                                                           |  |       |      |  |      |  |       |      |  |  | 6      | 
|Net earnings                                                                                                       |  |       |      |  |      |  | 988    |      |  |  | 720    | 
|                                                                                                                   |  |       |     
|Earnings per share attributable to equity holders of Agrium                                                        |  |       |      |  |      |  |        |      |  |  |        | 
|Basic and diluted earnings per share from continuing operations                                                    |  |       |      |  |      |  | 6.98   |      |  |  | 5.51   | 
|Basic and diluted loss per share from discontinued operations                                                      |  |       |      |  |      |  |       |      |  |  | (0.54) | 
|Basic and diluted earnings per share                                                                               |  |       |      |  |      |  | 6.98   |      |  |  | 4.97   | 
|Weighted average number of shares outstanding for basic and diluted earnings per share (millions of
common shares) |  |       |      |  |      |  | 142    |      |  |  | 144    | 

See accompanying notes.

Basis of preparation and statement of compliance

We prepared these financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting
Standards Board (IASB). The Board of Directors of Agrium (the Board) approved these consolidated financial statements for issuance on February 24, 2016.

The presentation currency of these financial statements is U.S. dollars. We prepared the financial statements using the historical cost basis, with the exception of
items that IFRS requires us to measure at fair value. Our significant accounting policies, judgments, assumptions and estimates are described in note 24.



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 89



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Consolidated Statements of Comprehensive Income



|                                                             |  |       |    |  |      |  |       |      |  |  |       | 
|------------------------------------------------------------ |  | ----- | -- |  | ---- |  | ----- | ---- |  |  | ----- | 
|Years ended December 31,                                     |  |       |    |  |      |  |       |      | 
|(millions of U.S. dollars)                                   |  | Notes |    |  | 2015 |  |       | 2014 | 
|Net earnings                                                 |  |       |    |  |      |  | 988   |      |  |  | 720   | 
|Other comprehensive loss                                     |  |       |    |  |      |  |       |      |  |  |       | 
|Items that are or may be reclassified to earnings            |  |       |    |  |      |  |       |      |  |  |       | 
|Cash flow hedges                                             |  |       | 4  |  |      |  |       |      |  |  |       | 
|Effective portion of changes in fair value                   |  |       |    |  |      |  | (45)  |      |  |  | (36)  | 
|Deferred income taxes                                        |  |       |    |  |      |  | 12    |      |  |  | 9     | 
|Share of comprehensive loss of associates and joint ventures |  |       | 15 |  |      |  | (6)   |      |  |  | (4)   | 
|Foreign currency translation                                 |  |       |    |  |      |  |       |      |  |  |       | 
|Losses                                                       |  |       |    |  |      |  | (617) |      |  |  | (341) | 
|Reclassifications to earnings                                |  |       |    |  |      |  | 8     |      |  |  |      | 
|                                                             |  |       |    |  |      |  | (648) |      |  |  | (372) | 
|Items that will never be reclassified to earnings            |  |       |    |  |      |  |       |      |  |  |       | 
|Post-employment benefits                                     |  |       | 8  |  |      |  |       |      |  |  |       | 
|Actuarial gains (losses)                                     |  |       |    |  |      |  | 14    |      |  |  | (31)  | 
|Deferred income taxes                                        |  |       |    |  |      |  | (4)   |      |  |  | 9     | 
|                                                             |  |       |    |  |      |  | 10    |      |  |  | (22)  | 
|Other comprehensive loss                                     |  |       |    |  |      |  | (638) |      |  |  | (394) | 
|Comprehensive income                                         |  |       |    |  |      |  | 350   |      |  |  | 326   | 
|Attributable to                                              |  |       |    |  |      |  |       |      |  |  |       | 
|Equity holders of Agrium                                     |  |       |    |  |      |  | 350   |      |  |  | 320   | 
|Non-controlling interest                                     |  |       |    |  |      |  |      |      |  |  | 6     | 
|Comprehensive income                                         |  |       |    |  |      |  | 350   |      |  |  | 326   | 

See accompanying notes.



|   |  |                          
|-- |  | -------------------------
|90 |  | AGRIUM ANNUAL REPORT
2015



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Consolidated Balance Sheets



|                                             |  |       |    |  |              |  |         |      |  |  |        | 
|-------------------------------------------- |  | ----- | -- |  | ------------ |  | ------- | ---- |  |  | ------ | 
|                                             |  | Notes |    |  | December 31, | 
|(millions of U.S. dollars)                   |  |       |    |  | 2015         |  |         | 2014 | 
|Assets                                       |  |       |    |  |              |  |         |      |  |  |        | 
|Current assets                               |  |       |    |  |              |  |         |      |  |  |        | 
|Cash and cash equivalents                    |  |       | 10 |  |              |  | 515     |      |  |  | 848    | 
|Accounts receivable                          |  |       | 11 |  |              |  | 2,053   |      |  |  | 2,075  | 
|Income taxes receivable                      |  |       |    |  |              |  | 4       |      |  |  | 138    | 
|Inventories                                  |  |       | 12 |  |              |  | 3,314   |      |  |  | 3,505  | 
|Prepaid expenses and deposits                |  |       |    |  |              |  | 688     |      |  |  | 710    | 
|Other current assets                         |  |       | 16 |  |              |  | 144     |      |  |  | 122    | 
|                                             |  |       |    |  |              |  | 6,718   |      |  |  | 7,398  | 
|Property, plant and equipment                |  |       | 13 |  |              |  | 6,333   |      |  |  | 6,272  | 
|Intangibles                                  |  |       | 14 |  |              |  | 632     |      |  |  | 695    | 
|Goodwill                                     |  |       | 14 |  |              |  | 1,980   |      |  |  | 2,014  | 
|Investments in associates and joint ventures |  |       | 15 |  |              |  | 607     |      |  |  | 576    | 
|Other assets                                 |  |       | 16 |  |              |  | 54      |      |  |  | 78     | 
|Deferred income tax assets                   |  |       | 7  |  |              |  | 53      |      |  |  | 75     | 
|                                             |  |       |    |  |              |  | 16,377  |      |  |  | 17,108 | 
|Liabilities and shareholders equity         |  |       |    |  |              |  |         |      |  |  |        | 
|Current liabilities                          |  |       |    |  |              |  |         |      |  |  |        | 
|Short-term debt                              |  |       | 17 |  |              |  | 835     |      |  |  | 1,527  | 
|Accounts payable                             |  |       | 18 |  |              |  | 3,919   |      |  |  | 4,197  | 
|Income taxes payable                         |  |       |    |  |              |  | 82      |      |  |  | 5      | 
|Current portion of long-term debt            |  |       | 17 |  |              |  | 8       |      |  |  | 11     | 
|Current portion of other provisions          |  |       | 19 |  |              |  | 85      |      |  |  | 113    | 
|                                             |  |       |    |  |              |  | 4,929   |      |  |  | 5,853  | 
|Long-term debt                               |  |       | 17 |  |              |  | 4,513   |      |  |  | 3,559  | 
|Post-employment benefits                     |  |       | 8  |  |              |  | 124     |      |  |  | 151    | 
|Other provisions                             |  |       | 19 |  |              |  | 336     |      |  |  | 367    | 
|Other liabilities                            |  |       | 20 |  |              |  | 85      |      |  |  | 69     | 
|Deferred income tax liabilities              |  |       | 7  |  |              |  | 383     |      |  |  | 422    | 
|                                             |  |       |    |  |              |  | 10,370  |      |  |  | 10,421 | 
|Shareholders equity                         |  |       |    |  |              |  |         |      |  |  |        | 
|Share capital                                |  |       |    |  |              |  | 1,757   |      |  |  | 1,821  | 
|Retained earnings                            |  |       |    |  |              |  | 5,533   |      |  |  | 5,502  | 
|Accumulated other comprehensive loss         |  |       |    |  |              |  | (1,287) |      |  |  | (643)  | 
|Equity holders of Agrium                     |  |       |    |  |              |  | 6,003   |      |  |  | 6,680  | 
|Non-controlling interest                     |  |       |    |  |              |  | 4       |      |  |  | 7      | 
|Total equity                                 |  |       |    |  |              |  | 6,007   |      |  |  | 6,687  | 
|                                             |  |       |    |  |              |  | 16,377  |      |  |  | 17,108 | 

See accompanying notes.



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 91



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Consolidated Statements of Cash Flows



|                                                                            |  |       |    |  |      |  |         |      |  |  |         | 
|--------------------------------------------------------------------------- |  | ----- | -- |  | ---- |  | ------- | ---- |  |  | ------- | 
|Years ended December 31,                                                    |  |       |    |  |      |  |         |      | 
|(millions of U.S. dollars)                                                  |  | Notes |    |  | 2015 |  |         | 2014 | 
|Operating                                                                   |  |       |    |  |      |  |         |      |  |  |         | 
|Net earnings from continuing operations                                     |  |       |    |  |      |  | 988     |      |  |  | 798     | 
|Adjustments for                                                             |  |       |    |  |      |  |         |      |  |  |         | 
|Depreciation and amortization                                               |  |       |    |  |      |  | 480     |      |  |  | 550     | 
|Loss (earnings) from associates and joint ventures                          |  |       |    |  |      |  | 4       |      |  |  | (23)    | 
|Share-based payments                                                        |  |       |    |  |      |  | 51      |      |  |  | 50      | 
|Unrealized gain on derivative financial instruments                         |  |       |    |  |      |  | (21)    |      |  |  | (32)    | 
|Unrealized foreign exchange (gain) loss                                     |  |       |    |  |      |  | (35)    |      |  |  | 56      | 
|Interest income                                                             |  |       |    |  |      |  | (68)    |      |  |  | (83)    | 
|Finance costs                                                               |  |       |    |  |      |  | 252     |      |  |  | 132     | 
|Income taxes                                                                |  |       |    |  |      |  | 376     |      |  |  | 230     | 
|Other                                                                       |  |       |    |  |      |  | (20)    |      |  |  | 20      | 
|Interest received                                                           |  |       |    |  |      |  | 70      |      |  |  | 85      | 
|Interest paid                                                               |  |       |    |  |      |  | (212)   |      |  |  | (105)   | 
|Income taxes paid                                                           |  |       |    |  |      |  | (111)   |      |  |  | (320)   | 
|Dividends from associates and joint ventures                                |  |       |    |  |      |  | 2       |      |  |  | 49      | 
|Net changes in non-cash working capital                                     |  |       | 10 |  |      |  | (93)    |      |  |  | (95)    | 
|Cash provided by operating activities                                       |  |       |    |  |      |  | 1,663   |      |  |  | 1,312   | 
|Investing                                                                   |  |       |    |  |      |  |         |      |  |  |         | 
|Business acquisitions, net of cash acquired                                 |  |       | 21 |  |      |  | (127)   |      |  |  | (179)   | 
|Proceeds from sale of discontinued operations                               |  |       |    |  |      |  |        |      |  |  | 94      | 
|Capital expenditures                                                        |  |       |    |  |      |  | (1,188) |      |  |  | (2,021) | 
|Capitalized borrowing costs                                                 |  |       |    |  |      |  | (45)    |      |  |  | (111)   | 
|Purchase of investments                                                     |  |       |    |  |      |  | (128)   |      |  |  | (116)   | 
|Proceeds from sale of investments                                           |  |       |    |  |      |  | 83      |      |  |  | 123     | 
|Proceeds from sale of property, plant and equipment                         |  |       |    |  |      |  | 104     |      |  |  |        | 
|Other                                                                       |  |       |    |  |      |  | (4)     |      |  |  | (20)    | 
|Net changes in non-cash working capital                                     |  |       |    |  |      |  | (198)   |      |  |  | 162     | 
|Cash used in investing activities                                           |  |       |    |  |      |  | (1,503) |      |  |  | (2,068) | 
|Financing                                                                   |  |       |    |  |      |  |         |      |  |  |         | 
|Short-term debt                                                             |  |       |    |  |      |  | (514)   |      |  |  | 845     | 
|Long-term debt issued                                                       |  |       |    |  |      |  | 1,000   |      |  |  | 512     | 
|Transaction costs on long-term debt                                         |  |       |    |  |      |  | (14)    |      |  |  | (8)     | 
|Repayment of long-term debt                                                 |  |       |    |  |      |  | (19)    |      |  |  | (64)    | 
|Dividends paid                                                              |  |       |    |  |      |  | (468)   |      |  |  | (430)   | 
|Shares issued                                                               |  |       |    |  |      |  | 1       |      |  |  | 1       | 
|Shares repurchased                                                          |  |       |    |  |      |  | (559)   |      |  |  |        | 
|Cash (used in) provided by financing activities                             |  |       |    |  |      |  | (573)   |      |  |  | 856     | 
|Effect of exchange rate changes on cash and cash equivalents                |  |       |    |  |      |  | 80      |      |  |  | (35)    | 
|(Decrease) increase in cash and cash equivalents from continuing operations |  |       |    |  |      |  | (333)   |      |  |  | 65      | 
|Cash and cash equivalents used in discontinued operations                   |  |       |    |  |      |  |        |      |  |  | (18)    | 
|Cash and cash equivalents  beginning of year                               |  |       |    |  |      |  | 848     |      |  |  | 801     | 
|Cash and cash equivalents  end of year                                     |  |       | 10 |  |      |  | 515     |      |  |  | 848     | 

See accompanying notes.



|   |  |                          
|-- |  | -------------------------
|92 |  | AGRIUM ANNUAL REPORT
2015



---





Consolidated Statements of Shareholders Equity



|                                                 |  |                         |     |  |              |  |       |                  |  |  |                                   |  |  |                                                  |      |  |                                       |  |      |                            |  |  |       |  |  |                        |         |  |                         |  |         |             |  |  |       |  |  |  |     |  |  |  |       | 
|------------------------------------------------ |  | ----------------------- | --- |  | ------------ |  | ----- | ---------------- |  |  | --------------------------------- |  |  | ------------------------------------------------ | ---- |  | ------------------------------------- |  | ---- | -------------------------- |  |  | ----- |  |  | ---------------------- | ------- |  | ----------------------- |  | ------- | ----------- |  |  | ----- |  |  |  | --- |  |  |  | ----- | 
|                                                 |  |                         |     |  |              |  |       |                  |  |  | Other comprehensive income (loss) |  |  |                                                  |      |  |                                       |  |      |                            | 
|(millions of U.S. dollars,
except share data)    |  | Millionsof commonshares |     |  | Sharecapital |  |       | Retainedearnings |  |  | Cashflowhedges                    |  |  | Comprehensiveloss ofassociates
and jointventures |      |  | Availablefor salefinancialinstruments |  |      | Foreigncurrencytranslation |  |  | Total |  |  | Equityholders ofAgrium |         |  | Non-controllinginterest |  |         | Totalequity | 
|December 31, 2013                                |  |                         | 144 |  |              |  | 1,820 |                  |  |  | 5,253                             |  |  |                                                  |     |  |                                       |  | (7)  |                            |  |  | (8)   |  |  |                        | (264)   |  |                         |  | (279)   |             |  |  | 6,794 |  |  |  | 2   |  |  |  | 6,796 | 
|Net earnings                                     |  |                         |    |  |              |  |      |                  |  |  | 714                               |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | 714   |  |  |  | 6   |  |  |  | 720   | 
|Other comprehensive income (loss), net of tax    |  |                         |     |  |              |  |       |                  |  |  |                                   |  |  |                                                  |      |  |                                       |  |      |                            |  |  |       |  |  |                        |         |  |                         |  |         |             |  |  |       |  |  |  |     |  |  |  |       | 
|Post-employment benefits                         |  |                         |    |  |              |  |      |                  |  |  | (22)                              |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | (22)  |  |  |  |    |  |  |  | (22)  | 
|Other                                            |  |                         |    |  |              |  |      |                  |  |  |                                  |  |  |                                                  | (27) |  |                                       |  | (4)  |                            |  |  |      |  |  |                        | (341)   |  |                         |  | (372)   |             |  |  | (372) |  |  |  |    |  |  |  | (372) | 
|Comprehensive income (loss), net of tax          |  |                         |    |  |              |  |      |                  |  |  | 692                               |  |  |                                                  | (27) |  |                                       |  | (4)  |                            |  |  |      |  |  |                        | (341)   |  |                         |  | (372)   |             |  |  | 320   |  |  |  | 6   |  |  |  | 326   | 
|Dividends ($3.03 per share)                      |  |                         |    |  |              |  |      |                  |  |  | (435)                             |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | (435) |  |  |  |    |  |  |  | (435) | 
|Non-controlling interest transactions            |  |                         |    |  |              |  |      |                  |  |  |                                  |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  |      |  |  |  | (1) |  |  |  | (1)   | 
|Share-based payment transactions                 |  |                         |    |  |              |  | 1     |                  |  |  |                                  |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | 1     |  |  |  |    |  |  |  | 1     | 
|Impact of adopting IFRS 9 at January 1, 2014     |  |                         |    |  |              |  |      |                  |  |  | (8)                               |  |  |                                                  |     |  |                                       |  |     |                            |  |  | 8     |  |  |                        |        |  |                         |  | 8       |             |  |  |      |  |  |  |    |  |  |  |      | 
|December 31, 2014                                |  |                         | 144 |  |              |  | 1,821 |                  |  |  | 5,502                             |  |  |                                                  | (27) |  |                                       |  | (11) |                            |  |  |      |  |  |                        | (605)   |  |                         |  | (643)   |             |  |  | 6,680 |  |  |  | 7   |  |  |  | 6,687 | 
|Net earnings                                     |  |                         |    |  |              |  |      |                  |  |  | 988                               |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | 988   |  |  |  |    |  |  |  | 988   | 
|Other comprehensive income (loss), net of tax    |  |                         |     |  |              |  |       |                  |  |  |                                   |  |  |                                                  |      |  |                                       |  |      |                            |  |  |       |  |  |                        |         |  |                         |  |         |             |  |  |       |  |  |  |     |  |  |  |       | 
|Post-employment benefits                         |  |                         |    |  |              |  |      |                  |  |  | 10                                |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | 10    |  |  |  |    |  |  |  | 10    | 
|Other                                            |  |                         |    |  |              |  |      |                  |  |  |                                  |  |  |                                                  | (33) |  |                                       |  | (6)  |                            |  |  |      |  |  |                        | (609)   |  |                         |  | (648)   |             |  |  | (648) |  |  |  |    |  |  |  | (648) | 
|Comprehensive income (loss), net of tax          |  |                         |    |  |              |  |      |                  |  |  | 998                               |  |  |                                                  | (33) |  |                                       |  | (6)  |                            |  |  |      |  |  |                        | (609)   |  |                         |  | (648)   |             |  |  | 350   |  |  |  |    |  |  |  | 350   | 
|Dividends ($3.41 per share)                      |  |                         |    |  |              |  |      |                  |  |  | (478)                             |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | (478) |  |  |  |    |  |  |  | (478) | 
|Non-controlling interest transactions            |  |                         |    |  |              |  |      |                  |  |  |                                  |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  |      |  |  |  | (3) |  |  |  | (3)   | 
|Shares repurchased                               |  |                         | (6) |  |              |  | (70)  |                  |  |  | (489)                             |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | (559) |  |  |  |    |  |  |  | (559) | 
|Share-based payment transactions                 |  |                         |    |  |              |  | 6     |                  |  |  |                                  |  |  |                                                  |     |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  |        |             |  |  | 6     |  |  |  |    |  |  |  | 6     | 
|Reclassification of cash flow hedges, net of tax |  |                         |    |  |              |  |      |                  |  |  |                                  |  |  |                                                  | 4    |  |                                       |  |     |                            |  |  |      |  |  |                        |        |  |                         |  | 4       |             |  |  | 4     |  |  |  |    |  |  |  | 4     | 
|December 31, 2015                                |  |                         | 138 |  |              |  | 1,757 |                  |  |  | 5,533                             |  |  |                                                  | (56) |  |                                       |  | (17) |                            |  |  |      |  |  |                        | (1,214) |  |                         |  | (1,287) |             |  |  | 6,003 |  |  |  | 4   |  |  |  | 6,007 | 

See accompanying notes.



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 93



---





Notes to the Consolidated Financial Statements

(millions of U.S. dollars unless otherwise stated)



|1. |  | CORPORATE MANAGEMENT
|-- |  | --------------------

Agrium Inc. (Agrium) is incorporated under the laws of Canada with common shares
listed under the symbol AGU on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E., Calgary, Canada. We conduct our operations globally from our
Wholesale head office in Calgary and our Retail head office in Loveland, Colorado, United States. In these financial statements, we, us, our and Agrium mean Agrium Inc., its subsidiaries and joint
arrangements.

Our Executive Leadership Team (ELT) comprises the following officers at the date of release of these financial statements:



| | ● |  | Charles (Chuck) V. Magro  President & Chief Executive Officer
| | - |  | --------------------------------------------------------------



| | ● |  | Steve J. Douglas  Senior Vice President & Chief Financial Officer
| | - |  | ------------------------------------------------------------------



| | ● |  | Henry (Harry) Deans  Senior Vice President and President, Wholesale Business Unit
| | - |  | ----------------------------------------------------------------------------------



| | ● |  | Stephen G. Dyer  Senior Vice President and President, Retail Business Unit
| | - |  | ---------------------------------------------------------------------------



| | ● |  | Susan C. Jones  Senior Vice President & Chief Legal Officer
| | - |  | ------------------------------------------------------------



| | ● |  | Leslie A. ODonoghue  Executive Vice President, Corporate Development & Strategy & Chief Risk Officer
| | - |  | ------------------------------------------------------------------------------------------------------



| | ● |  | Michael R. Webb  Senior Vice President, Human Resources
| | - |  | --------------------------------------------------------

ELT and Board of Directors compensation included in these
financial statements:



|                           |  |      |    |  |      |  |    | 
|-------------------------- |  | ---- | -- |  | ---- |  | -- | 
|Related party transactions |  |      |    |  |      | 
|                           |  | 2015 |    |  | 2014 | 
|Short-term benefits        |  |      | 11 |  |      |  | 17 | 
|Post-employment benefits   |  |      | 2  |  |      |  | 2  | 
|Share-based payments       |  |      | 20 |  |      |  | 15 | 

The ELT is responsible for strategic decision making, resource allocation, and assessing financial performance and is identified as our
Chief Operating Decision Maker (CODM) for the purposes of reporting segment operations under IFRS. The CODM reviews the results of our operations and our financial position on consolidated and operating segment levels. Our operating segments are
defined by the organization and reporting structure through which we operate our business. We categorized our operating segments within the Retail and Wholesale business units as follows:



| | ● |  | Retail: Distributes crop nutrients, crop protection products, seed, merchandise and services directly to growers through a network of farm centers in two geographical segments:
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | North America: including the United States and Canada
| | - |  | -----------------------------------------------------



| |  |  | International: including Australia and South America
| | - |  | ----------------------------------------------------



| | ● |  | Wholesale: Produces, markets and distributes crop nutrients and industrial products through the following businesses:
| | - |  | ---------------------------------------------------------------------------------------------------------------------



| |  |  | Nitrogen: Manufacturing in Alberta, Texas and Argentina
| | - |  | -------------------------------------------------------



| |  |  | Potash: Mining and processing in Saskatchewan
| | - |  | ---------------------------------------------



| |  |  | Phosphate: Mining and production facilities in Alberta and Idaho
| | - |  | ----------------------------------------------------------------



| |  |  | Wholesale Other: Purchasing and reselling crop nutrient products from other suppliers to customers in the Americas and Europe, and producing blended crop nutrients and Environmentally Smart Nitrogen
polymer-coated nitrogen crop nutrients.
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|   |  |                          
|-- |  | -------------------------
|94 |  | AGRIUM ANNUAL REPORT
2015



---





|                                                      |  |                         |  |               |  |                                                |  |                    
|----------------------------------------------------- |  | ----------------------- |  | ------------- |  | ---------------------------------------------- |  | -------------------
|Principal subsidiaries, associates and joint ventures
|                                                      |  | Relationship/
Ownership |  | Location      |  | Principal activity                             |  | Method ofaccounting
|Agrium, a general partnership                         |  | Subsidiary, 100%        |  | Canada        |  | Manufacturer and distributor of crop nutrients |  | Consolidation      
|                                                      |  |                         |  |              
|Agrium Europe S.A.                                    |  | Subsidiary, 100%        |  | Belgium       |  | Distributor of crop nutrients                  |  | Consolidation      
|                                                      |  |                         |  |              
|Agrium U.S. Inc.                                      |  | Subsidiary, 100%        |  | United States |  | Manufacturer and distributor of crop nutrients |  | Consolidation      
|                                                      |  |                         |  |              
|Agroservicios Pampeanos S.A.                          |  | Subsidiary, 100%        |  | Argentina     |  | Crop input retailer                            |  | Consolidation      
|                                                      |  |                         |  |              
|Crop Production Services, Inc.                        |  | Subsidiary, 100%        |  | United States |  | Crop input retailer                            |  | Consolidation      
|                                                      |  |                         |  |              
|Crop Production Services (Canada) Inc.                |  | Subsidiary, 100%        |  | Canada        |  | Crop input retailer                            |  | Consolidation      
|                                                      |  |                         |  |              
|Landmark Operations Ltd.                              |  | Subsidiary, 100%        |  | Australia     |  | Crop input retailer                            |  | Consolidation      
|                                                      |  |                         |  |              
|Loveland Products Inc.                                |  | Subsidiary, 100%        |  | United States |  | Crop input developer and retailer              |  | Consolidation      
|                                                      |  |                         |  |              
|Misr Fertilizers Production Company S.A.E.            |  | Associate, 26%          |  | Egypt         |  | Manufacturer and distributor of crop nutrients |  | Equity method      
|                                                      |  |                         |  |              
|Profertil S.A.                                        |  | Joint venture, 50%      |  | Argentina     |  | Manufacturer and distributor of crop nutrients |  | Equity method      



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 95



---





|2. |  | OPERATING SEGMENTS
|-- |  | ------------------



|                                                      |  |              |        |  |               |  |       |        |  |  |          |  |  |        |       |  |           |  |       |                |  |  |           |  |  |           |       |  |       |  |       |  |  |  |         |  |  |  |        | 
|----------------------------------------------------- |  | ------------ | ------ |  | ------------- |  | ----- | ------ |  |  | -------- |  |  | ------ | ----- |  | --------- |  | ----- | -------------- |  |  | --------- |  |  | --------- | ----- |  | ----- |  | ----- |  |  |  | ------- |  |  |  | ------ | 
|Segment information                                   | 
|                                                      |  | 2015         |       
|                                                      |  | NorthAmerica |        |  | International |  |       | Retail |  |  | Nitrogen |  |  | Potash |       |  | Phosphate |  |       | WholesaleOther |  |  | Wholesale |  |  | Other(a)  |       |  | Total | 
|Sales  external                                      |  |              | 10,093 |  |               |  | 2,075 |        |  |  | 12,168   |  |  |        | 1,129 |  |           |  | 364   |                |  |  | 471       |  |  |           | 663   |  |       |  | 2,627 |  |  |  |        |  |  |  | 14,795 | 
| inter-segment                                       |  |              | 31     |  |               |  |      |        |  |  | 31       |  |  |        | 401   |  |           |  | 151   |                |  |  | 270       |  |  |           | 153   |  |       |  | 975   |  |  |  | (1,006) |  |  |  |       | 
|Total sales                                           |  |              | 10,124 |  |               |  | 2,075 |        |  |  | 12,199   |  |  |        | 1,530 |  |           |  | 515   |                |  |  | 741       |  |  |           | 816   |  |       |  | 3,602 |  |  |  | (1,006) |  |  |  | 14,795 | 
|                                                      |  |              |        |  |               |  |       |        |  | 
|Earnings (loss) before finance costs and income taxes |  |              | 686    |  |               |  | 93    |        |  |  | 779      |  |  |        | 699   |  |           |  | 143   |                |  |  | 116       |  |  |           | 115   |  |       |  | 1,073 |  |  |  | (236)   |  |  |  | 1,616  | 
|Depreciation and amortization                         |  |              | 229    |  |               |  | 25    |        |  |  | 254      |  |  |        | 72    |  |           |  | 71    |                |  |  | 51        |  |  |           | 17    |  |       |  | 211   |  |  |  | 15      |  |  |  | 480    | 
|EBITDA(b)                                             |  |              | 915    |  |               |  | 118   |        |  |  | 1,033    |  |  |        | 771   |  |           |  | 214   |                |  |  | 167       |  |  |           | 132   |  |       |  | 1,284 |  |  |  | (221)   |  |  |  | 2,096  | 
|Share of joint ventures                               |  |              |        |  |               |  |       |        |  |  |          |  |  |        |       |  |           |  |       |                |  |  |           |  |  |           |       |  |       |  |       |  |  |  |         |  |  |  |        | 
|Finance costs and income taxes                        |  |              |       |  |               |  |      |        |  |  |         |  |  |        | 19    |  |           |  |      |                |  |  |          |  |  |           |      |  |       |  | 19    |  |  |  |        |  |  |  | 19     | 
|Depreciation and amortization                         |  |              |       |  |               |  |      |        |  |  |         |  |  |        | 19    |  |           |  |      |                |  |  |          |  |  |           |      |  |       |  | 19    |  |  |  |        |  |  |  | 19     | 
|Adjusted EBITDA                                       |  |              | 915    |  |               |  | 118   |        |  |  | 1,033    |  |  |        | 809   |  |           |  | 214   |                |  |  | 167       |  |  |           | 132   |  |       |  | 1,322 |  |  |  | (221)   |  |  |  | 2,134  | 
|                                                      |  |              |        |  |               |  |       |        |  | 
|Total assets                                          |  |              | 7,797  |  |               |  | 1,167 |        |  |  | 8,964    |  |  |        | 1,556 |  |           |  | 3,614 |                |  |  | 745       |  |  |           | 782   |  |       |  | 6,697 |  |  |  | 716     |  |  |  | 16,377 | 
|Additions to non-current
assets(c)                    |  |              | 272    |  |               |  | 22    |        |  |  | 294      |  |  |        | 525   |  |           |  | 436   |                |  |  | 88        |  |  |           | 27    |  |       |  | 1,076 |  |  |  | 16      |  |  |  | 1,386  | 
|                                                     
|Segment information                                   | 
|                                                      |  | 2014         |       
|                                                      |  | NorthAmerica |        |  | International |  |       | Retail |  |  | Nitrogen |  |  | Potash |       |  | Phosphate |  |       | WholesaleOther |  |  | Wholesale |  |  | Other (a) |       |  | Total | 
|Sales  external                                      |  |              | 10,449 |  |               |  | 2,518 |        |  |  | 12,967   |  |  |        | 1,124 |  |           |  | 274   |                |  |  | 456       |  |  |           | 1,221 |  |       |  | 3,075 |  |  |  |        |  |  |  | 16,042 | 
| inter-segment                                       |  |              | 14     |  |               |  |      |        |  |  | 14       |  |  |        | 358   |  |           |  | 117   |                |  |  | 245       |  |  |           | 178   |  |       |  | 898   |  |  |  | (912)   |  |  |  |       | 
|Total sales                                           |  |              | 10,463 |  |               |  | 2,518 |        |  |  | 12,981   |  |  |        | 1,482 |  |           |  | 391   |                |  |  | 701       |  |  |           | 1,399 |  |       |  | 3,973 |  |  |  | (912)   |  |  |  | 16,042 | 
|                                                      |  |              |        |  |               |  |       |        |  | 
|Earnings (loss) before finance costs and income taxes |  |              | 723    |  |               |  | 91    |        |  |  | 814      |  |  |        | 367   |  |           |  | 28    |                |  |  | 45        |  |  |           | 113   |  |       |  | 553   |  |  |  | (207)   |  |  |  | 1,160  | 
|Depreciation and amortization                         |  |              | 257    |  |               |  | 48    |        |  |  | 305      |  |  |        | 86    |  |           |  | 65    |                |  |  | 52        |  |  |           | 27    |  |       |  | 230   |  |  |  | 15      |  |  |  | 550    | 
|EBITDA(b)                                             |  |              | 980    |  |               |  | 139   |        |  |  | 1,119    |  |  |        | 453   |  |           |  | 93    |                |  |  | 97        |  |  |           | 140   |  |       |  | 783   |  |  |  | (192)   |  |  |  | 1,710  | 
|Share of joint ventures                               |  |              |        |  |               |  |       |        |  |  |          |  |  |        |       |  |           |  |       |                |  |  |           |  |  |           |       |  |       |  |       |  |  |  |         |  |  |  |        | 
|Finance costs and income taxes                        |  |              |       |  |               |  |      |        |  |  |         |  |  |        | 24    |  |           |  |      |                |  |  |          |  |  |           |      |  |       |  | 24    |  |  |  |        |  |  |  | 24     | 
|Depreciation and amortization                         |  |              |       |  |               |  |      |        |  |  |         |  |  |        | 14    |  |           |  |      |                |  |  |          |  |  |           |      |  |       |  | 14    |  |  |  |        |  |  |  | 14     | 
|Adjusted EBITDA                                       |  |              | 980    |  |               |  | 139   |        |  |  | 1,119    |  |  |        | 491   |  |           |  | 93    |                |  |  | 97        |  |  |           | 140   |  |       |  | 821   |  |  |  | (192)   |  |  |  | 1,748  | 
|                                                      |  |              |        |  |               |  |       |        |  | 
|Total assets                                          |  |              | 7,915  |  |               |  | 1,197 |        |  |  | 9,112    |  |  |        | 1,416 |  |           |  | 3,666 |                |  |  | 734       |  |  |           | 1,065 |  |       |  | 6,881 |  |  |  | 1,115   |  |  |  | 17,108 | 
|Additions to non-current
assets(c)                    |  |              | 399    |  |               |  | 32    |        |  |  | 431      |  |  |        | 506   |  |           |  | 1,356 |                |  |  | 26        |  |  |           | 19    |  |       |  | 1,907 |  |  |  | 5       |  |  |  | 2,343  | 



|(a) | Non-cash share-based payments expense of $51-million (2014  $50-million) is recorded in our Other segment.
|--- | -----------------------------------------------------------------------------------------------------------

|(b) | EBITDA is earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization.
|--- | -----------------------------------------------------------------------------------------------------------------------

|(c) | Includes property, plant and equipment, intangibles and goodwill.
|--- | -----------------------------------------------------------------



|   |  |                          
|-- |  | -------------------------
|96 |  | AGRIUM ANNUAL REPORT
2015



---





|                             |  |      |        |  |      |  |        | 
|---------------------------- |  | ---- | ------ |  | ---- |  | ------ | 
|Retail sales by product line |  |      |        |  |      | 
|                             |  | 2015 |        |  | 2014 | 
|Crop nutrients               |  |      | 4,944  |  |      |  | 5,222  | 
|Crop protection products     |  |      | 4,543  |  |      |  | 4,613  | 
|Seed                         |  |      | 1,425  |  |      |  | 1,481  | 
|Merchandise                  |  |      | 638    |  |      |  | 871    | 
|Services and other           |  |      | 649    |  |      |  | 794    | 
|                             |  |      | 12,199 |  |      |  | 12,981 | 



|                              |  |          |        |  |                       |  |       |           |  |  |                       |  |  |  |       | 
|----------------------------- |  | -------- | ------ |  | --------------------- |  | ----- | --------- |  |  | --------------------- |  |  |  | ----- | 
|Key data by geographic region |  |          |        |  |                       |  |       |           |  |  |                       | 
|                              |  | 2015     |        |  | 2014                  | 
|                              |  | Sales(a) |        |  | Non-current assets(b) |  |       | Sales (a) |  |  | Non-current assets(b) | 
|Canada                        |  |          | 2,774  |  |                       |  | 4,294 |           |  |  | 3,227                 |  |  |  | 4,689 | 
|United States                 |  |          | 9,706  |  |                       |  | 4,461 |           |  |  | 9,702                 |  |  |  | 4,017 | 
|Europe                        |  |          | 231    |  |                       |  | 7     |           |  |  | 584                   |  |  |  | 34    | 
|South America                 |  |          | 331    |  |                       |  | 276   |           |  |  | 406                   |  |  |  | 278   | 
|Australia                     |  |          | 1,752  |  |                       |  | 246   |           |  |  | 1,910                 |  |  |  | 281   | 
|Egypt                         |  |          |       |  |                       |  | 283   |           |  |  |                      |  |  |  | 264   | 
|Other                         |  |          | 1      |  |                       |  | 2     |           |  |  | 213                   |  |  |  | 3     | 
|                              |  |          | 14,795 |  |                       |  | 9,569 |           |  |  | 16,042                |  |  |  | 9,566 | 



|(a) | Sales by location of customers.
|--- | -------------------------------

|(b) | Excludes financial instruments and deferred tax assets.
|--- | -------------------------------------------------------

Our CODM measures performance and allocates resources based on
information that it believes is most relevant in evaluating the results of operating segments relative to other entities that operate in similar industries. The main operating measure used by the CODM is Adjusted EBITDA. On a regular basis, the CODM
also reviews Retail sales by product line. The CODM does not review Retail net earnings information by product line, reflecting how Retail aggregates expenses and net earnings in its accounting records and financial reports. The CODM also does not
regularly review (a) financial information aggregated on any other product line or geographic basis or (b) segment finance costs, income taxes or balance sheet information. We have not aggregated any operating segments in determining our
reportable segments.

We continually monitor changes in facts and circumstances that could cause a change in the composition of our operating segments, as determined
by the information regularly reviewed by the CODM. In 2015, the CODM modified the regular reports it reviews, reflecting our exit of a significant portion of our Wholesale product purchased for resale business. We have modified our segment reporting
to reflect this change.

The accounting policies of segments are the same as the accounting policies described in note 24. We record sales between operating segments
at prices equivalent to those charged to third parties. We eliminate such sales on consolidation. We report a non-operating segment, Other, for inter-segment eliminations and corporate functions.



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 97



---





|3. |  | CAPITAL MANAGEMENT
|-- |  | ------------------



|                                                                           |  |             |        |  |              |  |       |      |  |  |       |  
|-------------------------------------------------------------------------- |  | ----------- | ------ |  | ------------ |  | ----- | ---- |  |  | ----- | -
|Information monitored on a regular basis to manage capital(a)              | 
|                                                                           |  | 2015 Target |        |  | December 31, | 
|                                                                           |  |             |        |  | 2015         |  |       | 2014 | 
|Net-debt to EBITDA                                                         |  |             |        |  |              |  | 2.3   |      |  |  | 2.5   |  
|Debt covenant ratios (b)                                                   |  |             |        |  |              |  |       |      |  |  |       |  
|Interest coverage (c)                                                      |  |             | 3 2.5  |  |              |  | 8     |      |  |  | 13    |  
|Debt-to-capital (d)                                                        |  |             | £ 0.65 |  |              |  | 0.46  |      |  |  | 0.40  |  
|Retail measures (%)                                                        |  |             |        |  |              |  |       |      |  |  |       |  
|Average non-cash working capital to sales                                  |  |             | 18     |  |              |  | 18    |      |  |  | 17    |  
|Return on operating capital employed (e)                                   |  |             | 22     |  |              |  | 17    |      |  |  | 18    |  
|Return on capital employed (f)                                             |  |             | 13     |  |              |  | 9     |      |  |  | 10    |  
|Components of ratios                                                       |  |             |        |  |              |  |       |      |  |  |       |  
|EBITDA                                                                     |  |             |        |  |              |  | 2,096 |      |  |  | 1,710 |  
|Calculation of components of ratios                                        |  |             |        |  |              |  |       |      |  |  |       |  
|1) Net debt                                                                |  |             |        |  |              |  |       |      |  |  |       |  
|Short-term debt                                                            |  |             |        |  |              |  | 835   |      |  |  | 1,527 |  
|Long-term debt, including current portion                                  |  |             |        |  |              |  | 4,521 |      |  |  | 3,570 |  
|Cash and cash equivalents                                                  |  |             |        |  |              |  | (515  | )    |  |  | (848  | )
|Net debt                                                                   |  |             |        |  |              |  | 4,841 |      |  |  | 4,249 |  
|2) Adjusted total debt                                                     |  |             |        |  |              |  |       |      |  |  |       |  
|Guarantees and letters of credit (specified in credit facility agreements) |  |             |        |  |              |  | 222   |      |  |  | 196   |  
|Adjusted total debt                                                        |  |             |        |  |              |  | 5,063 |      |  |  | 4,445 |  



|(a) | Includes measures identified as non-IFRS in our 2015 Managements Discussion and Analysis, which includes reconciliations to the most directly comparable IFRS measures.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Our revolving credit facilities require that we maintain these ratios, as well as other non-financial covenants. We were in compliance with all covenants at December 31, 2015.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | EBITDA divided by finance costs, which includes finance costs related to long-term debt plus other finance costs.
|--- | -----------------------------------------------------------------------------------------------------------------

|(d) | Adjusted total debt divided by the sum of adjusted total debt and total equity.
|--- | -------------------------------------------------------------------------------

|(e) | Last 12 months earnings from continuing operations before finance costs and income taxes (EBIT) less income taxes at a tax rate of 28 percent (2014  27 percent) divided by rolling four quarter average
operating capital employed. Operating capital employed includes non-cash working capital, property, plant and equipment, investments in associates and joint ventures, and other assets.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(f) | Last 12 months EBIT less income taxes at a tax rate of 28 percent (2014  27 percent) divided by rolling four quarter average capital employed. Capital employed includes operating capital employed,
intangibles and goodwill.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Policies and objectives in managing capital

We consider capital to be adjusted total debt plus total equity. Our objectives for managing capital are to (a) maintain a strong balance sheet and flexible capital
structure to optimize the cost of capital at an acceptable level of risk, (b) support an investment grade credit rating profile, (c) improve the overall efficiency of our assets and deliver on our growth opportunities to grow our earnings,
and (d) maximize total shareholder return.

To maintain or adjust our capital structure, we may adjust the amount of dividends paid to shareholders, issue new
shares, buy back shares, issue or redeem debt, or adjust anticipated future capital expenditures and resources available for other growth opportunities. Our authorized share capital consists of unlimited common shares without par value and unlimited
preferred shares. During 2015, we purchased for cancellation 5,574,331 of our own shares at an average share price of $100.25 for total consideration of $559-million.

We maintain a base shelf prospectus, which permits issuance to May 2016 in Canada and the United States, of common shares, debt and other securities up to $2.5-billion,
less $1.5-billion of securities already issued under the prospectus. Issuance of further securities under the base shelf prospectus requires filing a prospectus supplement and is subject to the availability of funding in capital markets.



|   |  |                          
|-- |  | -------------------------
|98 |  | AGRIUM ANNUAL REPORT
2015



---





|4. |  | RISK MANAGEMENT
|-- |  | ---------------

a) Financial risk management objectives and policies

In the normal course of business, our balance sheet, results of operations and cash flows are exposed to various risks. Annually, the Board approves a strategic plan that
takes into account the opportunities and major risks of our business and mitigating factors to reduce these risks. The Board sets upper limits on the time periods and transactional and balance sheet exposures management can manage. Our Corporate
Financial Risk Committee reviews risk management policies and procedures annually and monitors compliance with these limits and associated exposure management activity. We manage risk in accordance with our Global Exposure Management Policy, whose
objective is to reduce volatility in cash flows and net earnings. We hold all derivative financial instruments for risk management purposes only.

Risks we manage
are described under Risk Management Policies in section (j).

b) Market risk  currency risk



|                                                              |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          |    |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  |    |  
|------------------------------------------------------------- |  | ------------ | ----- |  | ---------- |  | ---- | ----------------------- |  |  | -------------------------------- |  |  | -------- | -- | - | ---------- |  | ----- | ------------------------ |  |  | -------------------------------- |  |  |  | ---- |  |  |  | -- | -
|Foreign exchange derivative financial instruments outstanding | 
|                                                              |  | December 31, |      
|                                                              |  | 2015         |       |  | 2014       | 
|Sell/Buy (notional amounts in millions of U.S. dollars)       |  | Notional     |       |  | Maturities |  |      | Averagecontractprice(a) |  |  | Fair valueof assets(liabilities) |  |  | Notional |    |   | Maturities |  |       | Averagecontractprice (a) |  |  | Fair valueof assets(liabilities) | 
|Not designated as hedges                                      |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          |    |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  |    |  
|Forwards                                                      |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          |    |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  |    |  
|USD/CAD                                                       |  |              | 190   |  |            |  | 2016 |                         |  |  | 1.38                             |  |  |          | (1 | ) |            |  |      |                          |  |  |                                 |  |  |  |     |  |  |  |   |  
|CAD/USD                                                       |  |              | 1,805 |  |            |  | 2016 |                         |  |  | 1.35                             |  |  |          | 45 |   |            |  | 1,675 |                          |  |  | 2015                             |  |  |  | 1.14 |  |  |  | 31 |  
|USD/AUD                                                       |  |              | 19    |  |            |  | 2016 |                         |  |  | 1.37                             |  |  |          |   |   |            |  | 33    |                          |  |  | 2015                             |  |  |  | 1.13 |  |  |  | (3 | )
|Swaps                                                         |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          |    |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  |    |  
|USD/AUD                                                       |  |              | 54    |  |            |  | 2016 |                         |  |  | 1.43                             |  |  |          | 2  |   |            |  | 26    |                          |  |  | 2015                             |  |  |  | 1.12 |  |  |  | (1 | )
|AUD/USD                                                       |  |              | 138   |  |            |  | 2016 |                         |  |  | 1.43                             |  |  |          | (3 | ) |            |  | 21    |                          |  |  | 2015                             |  |  |  | 1.13 |  |  |  | 2  |  
|Options                                                       |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          |    |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  |    |  
|USD/AUD                                                       |  |              | 59    |  |            |  | 2016 |                         |  |  | 1.38                             |  |  |          | (1 | ) |            |  |      |                          |  |  |                                 |  |  |  |     |  |  |  |   |  
|                                                              |  |              |       |  |            |  |      |                         |  |  |                                  |  |  |          | 42 |   |            |  |       |                          |  |  |                                  |  |  |  |      |  |  |  | 29 |  



|(a) | Foreign currency per U.S. dollar.
|--- | ---------------------------------

We determine the functional currency of our subsidiaries in reference to the primary
economic environment in which each entity operates. We are exposed to currency risk from financial instruments denominated in currencies other than the functional currency of an operation. The majority of this currency risk arises from exposure to
the Canadian dollar. We manage this exposure by entering into foreign currency derivative contracts. Although the derivatives have not been designated in hedging relationships, our risk management strategy is to offset substantially all of the
earnings impact from the translation of the underlying financial instruments that could occur from a reasonably possible strengthening or weakening of the U.S. dollar.

c) Market risk  commodity price risk

Commodity price risk management and cash flow hedges

Natural gas is a significant component of our cost of product sold for nitrogen-based
fertilizers. We use physical contracts and financial derivative contracts to manage the risk of market fluctuations in natural gas prices and to reduce the variability of cash flows from our planned purchases of natural gas used in our fertilizer
production facilities. Our Board of Directors has established limits on risk management activities, including the following:



|                                                                      |  |      |    |  |      |  |    |      |  |  |      |  |  |  |    |    
|--------------------------------------------------------------------- |  | ---- | -- |  | ---- |  | -- | ---- |  |  | ---- |  |  |  | -- | ---
|Use of derivatives to hedge exposure to natural gas market price risk |  |      |    |  |      |  |    |      |  |  |      | 
|Term (gas year  12 months ending October 31)                         |  | 2016 |    |  | 2017 |  |    | 2018 |  |  | 2019 | 
|Maximum allowable (% of forecast gas requirements)                    |  |      | 75 |  |      |  | 75 |      |  |  | 75   |  |  |  | 25 | (a)
|Forecast average monthly natural gas consumption (millions of MMBtu)  |  |      | 9  |  |      |  | 9  |      |  |  | 9    |  |  |  | 9  |    
|Gas requirements hedged using derivatives designated as hedges (%)    |  |      | 25 |  |      |  | 25 |      |  |  | 21   |  |  |  |   |    



|(a) | Maximum monthly hedged volume may not exceed 90 percent of planned monthly requirements.
|--- | ----------------------------------------------------------------------------------------



|                          |  |   
|------------------------- |  | --
|AGRIUM ANNUAL REPORT 2015 |  | 99



---





In 2015, we began to designate all of our natural gas derivatives as qualifying hedges for accounting purposes. During
2014, we designated only certain longer-term derivatives as hedges. The contracts settle in the months hedged using AECO futures price indexes, which we use to determine fair value. The contracts are denominated in Canadian dollars for purchases of
gas in Canadian dollars. At the inception of each designated derivative contract, we prepare formal designation and documentation of the hedging relationship and our risk management objective and strategy for undertaking the hedge. We record the
effective portion of changes in fair value to other comprehensive income. We record any ineffective portion to earnings.

The underlying risk of the derivative
contracts is identical to the hedged risk, and accordingly we have established a ratio of 1:1 for all natural gas hedges. Due to a strong correlation between AECO future contract prices and our delivered cost, we did not experience any
ineffectiveness on our hedges, and accordingly we have recorded the full change in the fair value of the natural gas derivative contracts designated as hedges to other comprehensive income.

Potential sources of ineffectiveness may come from changes in timing of forecast transactions, changes in volume delivered or changes in credit risk of Agrium or the
counterparty.



|                                                         |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          |     |   |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  |     |  
|-------------------------------------------------------- |  | ------------ | -- |  | ---------- |  | --------- | ------------------------- |  |  | -------------------------------- |  |  | -------- | --- | - | ---------- |  | -- | -------------------------- |  |  | --------------------------------- |  |  |  | ---- |  |  |  | --- | -
|Natural gas derivative financial instruments outstanding | 
|                                                         |  | December 31, |   
|                                                         |  | 2015         |    |  | 2014       | 
|(notional amounts in millions of MMBtu)                  |  | Notional     |    |  | Maturities |  |           | Average
contract price(a) |  |  | Fair valueof assets(liabilities) |  |  | Notional |     |   | Maturities |  |    | Average
contract price (a) |  |  | Fair value
of assets(liabilities) | 
|Designated as hedges                                     |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          |     |   |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  |     |  
|AECO swaps                                               |  |              | 74 |  |            |  | 2016-2018 |                           |  |  | 2.78                             |  |  |          | (56 | ) |            |  | 69 |                            |  |  | 2015-2018                         |  |  |  | 3.32 |  |  |  | (25 | )
|                                                         |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          | (56 | ) |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  | (25 | )
|Not designated as hedges                                 |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          |     |   |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  |     |  
|NYMEX swaps                                              |  |              |   |  |            |  |          |                           |  |  |                                 |  |  |          |    |   |            |  | 1  |                            |  |  | 2015                              |  |  |  | 3.83 |  |  |  | (1  | )
|AECO swaps                                               |  |              |   |  |            |  |          |                           |  |  |                                 |  |  |          |    |   |            |  | 10 |                            |  |  | 2015                              |  |  |  | 3.40 |  |  |  | (10 | )
|                                                         |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          |    |   |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  | (11 | )
|                                                         |  |              |    |  |            |  |           |                           |  |  |                                  |  |  |          | (56 | ) |            |  |    |                            |  |  |                                   |  |  |  |      |  |  |  | (36 | )



|(a) | U.S. dollars per MMBtu.
|--- | -----------------------



|                                               |  |            |     |   |      |  |     |      |  |  |     |  
|---------------------------------------------- |  | ---------- | --- | - | ---- |  | --- | ---- |  |  | --- | -
|Maturities of natural gas derivative contracts | 
|                                               |  | Fair value |    
|                                               |  | 2016       |     |   | 2017 |  |     | 2018 | 
|Designated as hedges                           |  |            | (23 | ) |      |  | (18 | )    |  |  | (15 | )



|                                                         |  |              |      |   |         |  |      |                |  |  |             |   |  |         |      |   |                |  |      |   |  |  |     |  
|-------------------------------------------------------- |  | ------------ | ---- | - | ------- |  | ---- | -------------- |  |  | ----------- | - |  | ------- | ---- | - | -------------- |  | ---- | - |  |  | --- | -
|Natural gas derivative financial instruments outstanding |  |              |      |  
|                                                         |  | December 31, |     
|                                                         |  | 2015         |      |   | 2014    | 
|                                                         |  | Grossamount  |      |   | Netting |  |      | Carryingamount |  |  | Grossamount |   |  | Netting |      |   | Carryingamount | 
|Designated as hedges                                     |  |              |      |   |         |  |      |                |  |  |             |   |  |         |      |   |                |  |      |   |  |  |     |  
|Accounts receivable                                      |  |              | 48   |   |         |  | (48  | )              |  |  |            |   |  |         | 12   |   |                |  | (12  | ) |  |  |    |  
|Other assets                                             |  |              | 101  |   |         |  | (101 | )              |  |  |            |   |  |         | 193  |   |                |  | (193 | ) |  |  |    |  
|Accounts payable                                         |  |              | (71  | ) |         |  | 48   |                |  |  | (23         | ) |  |         | (15  | ) |                |  | 12   |   |  |  | (3  | )
|Other liabilities                                        |  |              | (134 | ) |         |  | 101  |                |  |  | (33         | ) |  |         | (215 | ) |                |  | 193  |   |  |  | (22 | )
|                                                         |  |              | (56  | ) |         |  |     |                |  |  | (56         | ) |  |         | (25  | ) |                |  |     |   |  |  | (25 | )
|Not designated as hedges                                 |  |              |      |   |         |  |      |                |  |  |             |   |  |         |      |   |                |  |      |   |  |  |     |  
|Accounts receivable                                      |  |              |     |   |         |  |     |                |  |  |            |   |  |         | 27   |   |                |  | (27  | ) |  |  |    |  
|Accounts payable                                         |  |              |     |   |         |  |     |                |  |  |            |   |  |         | (38  | ) |                |  | 27   |   |  |  | (11 | )
|                                                         |  |              |     |   |         |  |     |                |  |  |            |   |  |         | (11  | ) |                |  |     |   |  |  | (11 | )
|                                                         |  |              | (56  | ) |         |  |     |                |  |  | (56         | ) |  |         | (36  | ) |                |  |     |   |  |  | (36 | )



|    |  |                          
|--- |  | -------------------------
|100 |  | AGRIUM ANNUAL REPORT
2015



---





|                                                                                              |  |              |      |  |      |  |      | 
|--------------------------------------------------------------------------------------------- |  | ------------ | ---- |  | ---- |  | ---- | 
|Impact of change in fair value of natural gas derivative financial instruments                | 
|                                                                                              |  | December 31, |     
|                                                                                              |  | 2015         |      |  | 2014 | 
|A $ 10-million impact to net earnings requires movement in gas prices per MMBtu               |  |              |     |  |      |  | 1.23 | 
|A $ 10-million impact to other comprehensive income requires movement in gas prices per
MMBtu |  |              | 0.28 |  |      |  | 0.19 | 

d) Market risk  interest rate risk



|                                                                               |  |              |      |  
|------------------------------------------------------------------------------ |  | ------------ | ---- | -
|Impact of change in short-term debt(basis points)                              |  |              |     
|                                                                               |  | December 31, |     
|                                                                               |  | 2015         |     
|A $ 10-million decrease in net earnings requires an increase in interest rates |  |              | 165  |  
|                                                                               | 
|Sensitivity  impact of change in fair value of debentures                     |  |              |     
|                                                                               |  | December 31, |     
|                                                                               |  | 2015         |     
|Interest rate increase of 1%                                                   |  |              | (387 | )
|Interest rate decrease of 1%                                                   |  |              | 453  |  

The weighted average effective interest rate on long-term debt at December 31, 2015, was 5 percent (December 31, 2014  5
percent).

e) Credit risk



|                                |  |              |       |  |      |  |       | 
|------------------------------- |  | ------------ | ----- |  | ---- |  | ----- | 
|Maximum exposure to credit risk |  |              |       |  |      | 
|                                |  | December 31, |      
|                                |  | 2015         |       |  | 2014 | 
|Cash and cash equivalents       |  |              | 515   |  |      |  | 848   | 
|Accounts receivable             |  |              | 2,053 |  |      |  | 2,075 | 
|Other current assets            |  |              | 142   |  |      |  | 94    | 
|Other non-current assets        |  |              | 37    |  |      |  | 69    | 
|                                |  |              | 2,747 |  |      |  | 3,086 | 



|                                  |  |              |       |  |  |  |                               |   |  |  |       |  |  |  |                               |  
|--------------------------------- |  | ------------ | ----- |  |  |  | ----------------------------- | - |  |  | ----- |  |  |  | ----------------------------- | -
|Trade accounts receivable  aging |  |              |       | 
|                                  |  | December 31, |      
|                                  |  |              | 2015  |  |  |  | 2014                          |  
|                                  |  |              | Gross |  |  |  | Allowancefor doubtfulaccounts |   |  |  | Gross |  |  |  | Allowancefor doubtfulaccounts |  
|Not past due                      |  |              | 1,431 |  |  |  | (10                           | ) |  |  | 1,443 |  |  |  | (9                            | )
|30 days or less                   |  |              | 192   |  |  |  | (4                            | ) |  |  | 171   |  |  |  | (6                            | )
|31  60 days                      |  |              | 46    |  |  |  | (3                            | ) |  |  | 46    |  |  |  | (4                            | )
|61  90 days                      |  |              | 23    |  |  |  | (3                            | ) |  |  | 20    |  |  |  | (3                            | )
|Greater than 90 days              |  |              | 167   |  |  |  | (61                           | ) |  |  | 169   |  |  |  | (57                           | )
|                                  |  |              | 1,859 |  |  |  | (81                           | ) |  |  | 1,849 |  |  |  | (79                           | )



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 101



---





Trade accounts receivable  risk concentration

Trade accounts receivable have significant concentrations of credit risk in the agriculture sector. We determine and monitor concentrations of credit risk using our aging
analysis of trade receivables. Geographic and industry diversity and crop insurance programs in Canada and the United States mitigate this concentration of risk. Our Wholesale business unit diversifies and mitigates risk concentration by selling to
industrial customers outside the agriculture sector and by using letters of credit and credit insurance. We are closely monitoring the economic environment in Argentina and have taken measures to limit our exposure to that country. Our exposure to
credit risk in the Eurozone is negligible. We do not expect any significant losses from trade accounts receivable other than the amounts classified as doubtful accounts, based on historical information about default rates and our analysis of current
receivables. No single customer accounts for more than 10 percent of our sales.

We also mitigate credit risk in accounts receivable in our Retail operations in
Western Canada through an agency agreement with a Canadian financial institution whereby the financial institution provides credit to qualifying Agrium customers to assist in financing their crop input purchases. The agency agreement, which expires
in 2018, results in customers having loans directly with the institution while Agrium has only a limited recourse involvement to the extent of an indemnification of the institution for 50 percent of its future bad debts to a maximum of 5 percent of
the qualified customer loans. Outstanding customer credit with the financial institution was $509-million at December 31, 2015, which is not recognized in our consolidated balance sheet. Historical indemnification losses on this arrangement
have been negligible and the average aging of the customer loans with the financial institution is current.

Derivatives and cash and cash
equivalents  risk concentration

At December 31, 2015, all counterparties to derivative financial instruments have maintained an investment grade
credit rating, and there is no indication that any counterparty to a derivative financial contract or to cash and cash equivalents will be unable to meet its obligations. The carrying amount of financial assets represents the maximum credit
exposure.

f) Liquidity risk

The table below
summarizes the maturity profile of our financial liabilities based on contractual undiscounted payments, including estimated interest payments. The amounts included for derivative financial instruments are subject to change as interest rates,
exchange rates or commodity prices change.



|                                      |  |                |       |  |                       |  |        |                  |  |  |                  |  |  |                  |     |  |                    |  |     |  |  |  |       | 
|------------------------------------- |  | -------------- | ----- |  | --------------------- |  | ------ | ---------------- |  |  | ---------------- |  |  | ---------------- | --- |  | ------------------ |  | --- |  |  |  | ----- | 
|December 31, 2015                     |  | Carryingamount |       |  | Contractualcash flows |  |        | Lessthan oneyear |  |  | Oneto threeyears |  |  | Fourto fiveyears |     |  | Morethan fiveyears | 
|Short-term debt                       |  |                | 835   |  |                       |  | 835    |                  |  |  | 835              |  |  |                  |    |  |                    |  |    |  |  |  |      | 
|Accounts payable                      |  |                | 2,417 |  |                       |  | 2,417  |                  |  |  | 2,417            |  |  |                  |    |  |                    |  |    |  |  |  |      | 
|Current portion of long-term debt     |  |                | 8     |  |                       |  | 9      |                  |  |  | 9                |  |  |                  |    |  |                    |  |    |  |  |  |      | 
|Long-term debt                        |  |                | 4,513 |  |                       |  | 8,190  |                  |  |  | 226              |  |  |                  | 537 |  |                    |  | 868 |  |  |  | 6,559 | 
|Other liabilities                     |  |                | 17    |  |                       |  | 17     |                  |  |  |                 |  |  |                  | 17  |  |                    |  |    |  |  |  |      | 
|Foreign exchange derivative contracts |  |                | 6     |  |                       |  | 6      |                  |  |  | 6                |  |  |                  |    |  |                    |  |    |  |  |  |      | 
|Natural gas derivative contracts      |  |                | 56    |  |                       |  | 56     |                  |  |  | 23               |  |  |                  | 33  |  |                    |  |    |  |  |  |      | 
|                                      |  |                | 7,852 |  |                       |  | 11,530 |                  |  |  | 3,516            |  |  |                  | 587 |  |                    |  | 868 |  |  |  | 6,559 | 

g) Netting arrangements

We enter into derivative transactions under master netting arrangements. Under these arrangements, we aggregate the amounts owed by each counterparty for all contracts
outstanding in the same currency or commodity into a single net amount receivable or payable by us or our counterparty. If a default occurs, all outstanding transactions under the arrangement are terminated and the net termination value is
receivable or payable for settlement purposes.

We record the carrying amounts of our foreign exchange derivative contracts on a gross basis and the carrying amounts
of our natural gas, power and nutrient derivative contracts on a net basis.



|    |  |                          
|--- |  | -------------------------
|102 |  | AGRIUM ANNUAL REPORT
2015



---





h) Gain (loss) on derivative financial instruments included in earnings



|                                 |  |                     |     |   |                       |  |    |                  |  |  |                     |   |  |                       |    |  |                  |  |    |  |  |  |     | 
|-------------------------------- |  | ------------------- | --- | - | --------------------- |  | -- | ---------------- |  |  | ------------------- | - |  | --------------------- | -- |  | ---------------- |  | -- |  |  |  | --- | 
|                                 |  |                     |     |   | 2015                  |  |    |                  |  |  |                     |   |  | 2014                  |    |  |                  | 
|                                 |  | Realizedgain (loss) |     |   | Unrealizedgain (loss) |  |    | Totalgain (loss) |  |  | Realizedgain (loss) |   |  | Unrealizedgain (loss) |    |  | Totalgain (loss) | 
|Foreign exchange derivatives     |  |                     |     |   |                       |  |    |                  |  |  |                     |   |  |                       |    |  |                  |  |    |  |  |  |     | 
|Recorded in sales                |  |                     | 14  |   |                       |  |   |                  |  |  | 14                  |   |  |                       |   |  |                  |  |   |  |  |  |    | 
|Recorded in other expenses       |  |                     | 246 |   |                       |  | 21 |                  |  |  | 267                 |   |  |                       | 60 |  |                  |  | 32 |  |  |  | 92  | 
|                                 |  |                     | 260 |   |                       |  | 21 |                  |  |  | 281                 |   |  |                       | 60 |  |                  |  | 32 |  |  |  | 92  | 
|Commodity derivatives            |  |                     |     |   |                       |  |    |                  |  |  |                     |   |  |                       |    |  |                  |  |    |  |  |  |     | 
|Recorded in cost of product sold |  |                     | (7  | ) |                       |  |   |                  |  |  | (7                  | ) |  |                       |   |  |                  |  |   |  |  |  |    | 
|Recorded in other expenses       |  |                     |    |   |                       |  |   |                  |  |  |                    |   |  |                       | 18 |  |                  |  |   |  |  |  | 18  | 
|                                 |  |                     | (7  | ) |                       |  |   |                  |  |  | (7                  | ) |  |                       | 18 |  |                  |  |   |  |  |  | 18  | 
|                                 |  |                     | 253 |   |                       |  | 21 |                  |  |  | 274                 |   |  |                       | 78 |  |                  |  | 32 |  |  |  | 110 | 

i) Fair value hierarchy

We determine the fair value of financial instruments classified as Level 1 using independent quoted market prices for identical instruments in active markets. We estimate
the fair value of financial instruments classified as Level 2 using quoted prices for similar instruments in active markets or prices for identical or similar instruments in markets that are not active, or using valuation techniques based on
industry-accepted third-party models that make maximum use of market-based inputs. We classify fair value estimates not based on observable market data as Level 3. We consider a market active if quoted prices are readily and regularly available and
based on actual and regularly occurring market transactions. For any significant Level 3 measurements, we employ a valuation team or retain valuation experts to calculate certain measurements, and we review any third-party information we utilize.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in
economic conditions or market liquidity generally drive changes in the availability of observable market data. Changes in the availability of observable market data that may result in changing the valuation technique used are generally the cause of
transfers between hierarchy levels. We have not made any transfers between levels during 2015 or 2014. We do not measure any of our financial instruments using Level 3 inputs.

Fair value measurement techniques and inputs for financial instruments measured using Level 2 inputs



|                                                      |  |                       |  |                                                                                                                                                 
|----------------------------------------------------- |  | --------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------
|Financial instrument                                  |  | Measurement technique |  | Key inputs                                                                                                                                      
|Foreign exchange forward contracts, swaps and options |  | Discounted cash flow  |  | Forward exchange rates, contract forward and interest rates, observable yield curves                                                            
|Natural gas and power swaps                           |  | Market comparison     |  | Current market and contractual prices,
forward pricing curves, quoted forward prices, basis differentials, volatility factors and interest rates



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 103



---





|                                                                  |         |            |    |         |          |  |       |            |  |         |          |  |         |      |    |       |  |  |       |  |  |  |       | 
|----------------------------------------------------------------- | ------- | ---------- | -- | ------- | -------- |  | ----- | ---------- |  | ------- | -------- |  | ------- | ---- | -- | ----- |  |  | ----- |  |  |  | ----- | 
|                                                                  |         |            |    |         | 2015     |  |       |            |  |         |          |  |         | 2014 |    |       |  | 
|Financial instruments measured at fair value on a recurring basis |         | Fair value |    |         | Carrying |  |       | Fair value |  |         | Carrying | 
|                                                                  | Level 1 |            |    | Level 2 |          |  | value |            |  | Level 1 |          |  | Level 2 |      |    | value | 
|Cash and cash equivalents                                         |         |            |   |         |          |  | 515   |            |  |         | 515      |  |         |      |   |       |  |  | 848   |  |  |  | 848   | 
|Accounts receivable  derivatives                                 |         |            |   |         |          |  | 48    |            |  |         | 48       |  |         |      |   |       |  |  | 33    |  |  |  | 33    | 
|Other current financial assets  marketable securities(a)         |         |            | 20 |         |          |  | 122   |            |  |         | 142      |  |         |      | 20 |       |  |  | 70    |  |  |  | 90    | 
|Accounts payable  derivatives                                    |         |            |   |         |          |  | 29    |            |  |         | 29       |  |         |      |   |       |  |  | 18    |  |  |  | 18    | 
|Other financial liabilities  derivatives                         |         |            |   |         |          |  | 33    |            |  |         | 33       |  |         |      |   |       |  |  | 22    |  |  |  | 22    | 
|Financial instruments measured at amortized cost                  |         |            |    |         |          |  |       |            |  |         |          |  |         |      |    |       |  |  |       |  |  |  |       | 
|Current portion of long-term debt(b)                              |         |            |    |         |          |  |       |            |  |         |          |  |         |      |    |       |  |  |       |  |  |  |       | 
|Floating rate debt                                                |         |            |   |         |          |  | 8     |            |  |         | 8        |  |         |      |   |       |  |  | 11    |  |  |  | 11    | 
|Long-term debt(b)                                                 |         |            |    |         |          |  |       |            |  |         |          |  |         |      |    |       |  |  |       |  |  |  |       | 
|Debentures                                                        |         |            |   |         |          |  | 4,464 |            |  |         | 4,469    |  |         |      |   |       |  |  | 3,879 |  |  |  | 3,483 | 
|Fixed and floating rate debt                                      |         |            |   |         |          |  | 44    |            |  |         | 44       |  |         |      |   |       |  |  | 76    |  |  |  | 76    | 



|(a) | Marketable securities consist of equity and fixed income securities. We determine the fair value of equity securities based on the bid price of identical instruments in active markets. We value fixed income securities
using quoted prices of instruments with similar terms and credit risk.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | We determine the fair value of long-term debt based on comparable debt instruments with similar maturities to our debt, adjusted where necessary to our credit spread, based on information published by financial
institutions. Carrying amount of floating rate debt approximates fair value.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

j) Risk management policies



|                                                                                                                                          |  |                                                                                                                                         |  |                                                                                                                                                                                
|----------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Item                                                                                                                                      |  | Primarily affected by                                                                                                                   |  | Risk management policies                                                                                                                                                       
|Sales                                                                                                                                     |  | Product prices and foreign currency exchange rates                                                                                      |  | Foreign currency forward and swap contracts                                                                                                                                    
|                                                                                                                                          |  |                                                                                                                                        
|Cost of product sold  natural gas and power                                                                                              |  | Prices of natural gas and power                                                                                                         |  | Natural gas forward, swap and option contracts; power swap contracts                                                                                                           
|                                                                                                                                          |  |                                                                                                                                        
|Cost of product sold  inventory purchased for resale                                                                                     |  | Prices of nutrients purchased for resale                                                                                                |  | Nutrient swaps and fixed price product purchase commitments                                                                                                                    
|                                                                                                                                          |  |                                                                                                                                        
|Selling, general and administrative, and other expenses denominated in local currencies                                                   |  | Foreign currency exchange rates                                                                                                         |  | Foreign currency forward and swap contracts                                                                                                                                    
|                                                                                                                                          |  |                                                                                                                                        
|Capital expenditures                                                                                                                      |  | Foreign currency exchange rates                                                                                                         |  | Foreign currency forward and swap contracts                                                                                                                                    
|                                                                                                                                          |  |                                                                                                                                        
|Finance costs                                                                                                                             |  | USD interest rates                                                                                                                      |  | Maintaining a combination of fixed and floating rate debt; interest rate swaps to manage risk for up to 10 years                                                               
|                                                                                                                                          |  |                                                                                                                                        
|Financial instruments                                                                                                                     |  |                                                                                                                                         |  |                                                                                                                                                                                
|                                                                                                                                          |  |                                                                                                                                        
|Market risk  currency risk                                                                                                               |  | USD balances in Canadian, Australian, European and South American subsidiaries; foreign currencies held in USD-denominated subsidiaries |  | Foreign currency forward and swap contracts to manage risk for up to three years                                                                                               
|                                                                                                                                          |  |                                                                                                                                        
|Market risk  commodity price risk (natural gas, power and nutrient price risk)                                                           |  | Market prices of natural gas, power and nutrients                                                                                       |  | Natural gas forward, swap and option contracts; power swap contracts to manage power price risk for up to five years; nutrient swap contracts up to one year                   
|                                                                                                                                          |  |                                                                                                                                        
|Market risk  interest rate risk Floating: short-term debt, floating rate long-term debt, cash and cash equivalents Fixed: long-term debt |  | Changes in market interest rates                                                                                                        |  | Maintaining a combination of fixed and floating rate debt; interest rate swaps to manage risk for up to 10 years; cash management policies                                     
|                                                                                                                                          |  |                                                                                                                                        
|Credit risk                                                                                                                               |  | Ability of customers or counterparties to financial instruments to meet obligations                                                     |  | Credit approval and monitoring practices; counterparty policies; master netting arrangements; counterparty credit policies and limits; arrangements with financial institutions
|                                                                                                                                          |  |                                                                                                                                        
|Liquidity risk                                                                                                                            |  | Fluctuations in cash flows                                                                                                              |  | Preparing and monitoring forecasts of cash flows; cash management policies; multiple-year credit facilities                                                                    



|    |  |                          
|--- |  | -------------------------
|104 |  | AGRIUM ANNUAL REPORT
2015



---





|5. |  | EXPENSES
|-- |  | --------

We present expenses in our statements of operations by function. IFRS also requires us to provide
information about expenses by nature.



|                                                                                                    |  |      |        |   |      |  |        |  
|--------------------------------------------------------------------------------------------------- |  | ---- | ------ | - | ---- |  | ------ | -
|Expenses by nature                                                                                  |  |      |        |   |      | 
|                                                                                                    |  | 2015 |        |   | 2014 | 
|Decrease in finished goods inventory                                                                |  |      | 19     |   |      |  | 73     |  
|Purchased and produced raw materials and product for resale                                         |  |      | 11,297 |   |      |  | 12,770 |  
|Rebates                                                                                             |  |      | (1,100 | ) |      |  | (1,059 | )
|Freight and distribution                                                                            |  |      | 657    |   |      |  | 479    |  
|Short-term employee benefits                                                                        |  |      | 1,288  |   |      |  | 1,382  |  
|Post-employment benefits                                                                            |  |      | 59     |   |      |  | 64     |  
|Share-based payments                                                                                |  |      | 51     |   |      |  | 50     |  
|Depreciation of property, plant and equipment                                                       |  |      | 375    |   |      |  | 423    |  
|Amortization of intangibles                                                                         |  |      | 105    |   |      |  | 127    |  
|Operating leases                                                                                    |  |      | 206    |   |      |  | 226    |  
|Other                                                                                               |  |      | 190    |   |      |  | 352    |  
|                                                                                                    |  |      | 13,147 |   |      |  | 14,887 |  
|Expense line items                                                                                  |  |      |        |   |      |  |        |  
|Cost of product sold                                                                                |  |      | 10,907 |   |      |  | 12,490 |  
|Selling                                                                                             |  |      | 1,921  |   |      |  | 2,048  |  
|General and administrative                                                                          |  |      | 268    |   |      |  | 299    |  
|Share-based payments                                                                                |  |      | 51     |   |      |  | 50     |  
|                                                                                                    |  |      | 13,147 |   |      |  | 14,887 |  
|Other expenses                                                                                      |  |      |        |   |      | 
|                                                                                                    |  | 2015 |        |   | 2014 | 
|Loss on foreign exchange and related derivatives and commodity derivatives not designated as hedges |  |      | 8      |   |      |  | 15     |  
|Interest income                                                                                     |  |      | (68    | ) |      |  | (83    | )
|Gain on sale of assets                                                                              |  |      | (55    | ) |      |  |       |  
|Goodwill impairment                                                                                 |  |      | 19     |   |      |  |       |  
|Environmental remediation and asset retirement obligations                                          |  |      | 16     |   |      |  | 24     |  
|Bad debt expense                                                                                    |  |      | 32     |   |      |  | 19     |  
|Potash profit and capital tax                                                                       |  |      | 16     |   |      |  | 10     |  
|Other                                                                                               |  |      | 60     |   |      |  | 33     |  
|                                                                                                    |  |      | 28     |   |      |  | 18     |  

6. FINANCE COSTS



|                                                                        |  |      |     |  |      |  |     | 
|----------------------------------------------------------------------- |  | ---- | --- |  | ---- |  | --- | 
|Finance costs related to long-term debt                                 |  |      |     |  |      | 
|                                                                        |  | 2015 |     |  | 2014 | 
|Gross finance costs related to long-term debt                           |  |      | 226 |  |      |  | 173 | 
|Less: Borrowing costs capitalized at a rate of 4% (2014  5%)           |  |      | 45  |  |      |  | 111 | 
|                                                                        |  |      | 181 |  |      |  | 62  | 
|Other finance costs                                                     |  |      |     |  |      | 
|                                                                        |  | 2015 |     |  | 2014 | 
|Accretion of environmental remediation and asset retirement obligations |  |      | 7   |  |      |  | 12  | 
|Other interest expense                                                  |  |      | 64  |  |      |  | 58  | 
|                                                                        |  |      | 71  |  |      |  | 70  | 



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 105



---





|7. |  | INCOME TAXES
|-- |  | ------------



|                                                  |  |      |     |   |      |  |     |  
|------------------------------------------------- |  | ---- | --- | - | ---- |  | --- | -
|Components of income taxes                        |  |      |     |   |      | 
|                                                  |  | 2015 |     |   | 2014 | 
|Current tax expense                               |  |      | 326 |   |      |  | 266 |  
|Previously unrecognized tax assets                |  |      |    |   |      |  | (10 | )
|Current income taxes                              |  |      | 326 |   |      |  | 256 |  
|Origination and reversal of temporary differences |  |      | 53  |   |      |  | 6   |  
|Change in income tax rate (a)                     |  |      | 18  |   |      |  |    |  
|Previously unrecognized tax assets                |  |      | (21 | ) |      |  | (32 | )
|Deferred income taxes                             |  |      | 50  |   |      |  | (26 | )
|                                                  |  |      | 376 |   |      |  | 230 |  



|(a) | Alberta corporate income tax rate increased from 10 percent to 12 percent effective July 1, 2015.
|--- | -------------------------------------------------------------------------------------------------



|                                                                |  |      |       |   |      |  |       |  
|--------------------------------------------------------------- |  | ---- | ----- | - | ---- |  | ----- | -
|Reconciliation of statutory tax rate to effective tax rate      |  |      |       |   |      | 
|                                                                |  | 2015 |       |   | 2014 | 
|Earnings before income taxes                                    |  |      |       |   |      |  |       |  
|Canada                                                          |  |      | 642   |   |      |  | 266   |  
|Foreign                                                         |  |      | 722   |   |      |  | 762   |  
|                                                                |  |      | 1,364 |   |      |  | 1,028 |  
|Statutory rate (%)                                              |  |      | 26    |   |      |  | 26    |  
|Income taxes at statutory rate                                  |  |      | 359   |   |      |  | 264   |  
|Foreign currency (losses) gains relating to Canadian operations |  |      | (3    | ) |      |  | 1     |  
|Differences in foreign tax rates                                |  |      | 20    |   |      |  | 25    |  
|Loss (earnings) from associates and joint ventures              |  |      | 3     |   |      |  | (9    | )
|Canadian tax rate adjustment                                    |  |      | 18    |   |      |  |      |  
|Recognition of previously unrecognized tax assets               |  |      | (21   | ) |      |  | (42   | )
|Other                                                           |  |      |      |   |      |  | (9    | )
|Income taxes                                                    |  |      | 376   |   |      |  | 230   |  
|Current                                                         |  |      |       |   |      |  |       |  
|Canada                                                          |  |      | 112   |   |      |  | 37    |  
|Foreign                                                         |  |      | 214   |   |      |  | 219   |  
|                                                                |  |      | 326   |   |      |  | 256   |  
|Deferred                                                        |  |      |       |   |      |  |       |  
|Canada                                                          |  |      | 63    |   |      |  | 19    |  
|Foreign                                                         |  |      | (13   | ) |      |  | (45   | )
|                                                                |  |      | 50    |   |      |  | (26   | )
|                                                                |  |      | 376   |   |      |  | 230   |  



|    |  |                          
|--- |  | -------------------------
|106 |  | AGRIUM ANNUAL REPORT
2015



---





|                                                          |  |                                                      |      |   |                                  |  |      |                                      |  |  |         |   |  |      |     |   |      |  |     |   |  |  |     |  
|--------------------------------------------------------- |  | ---------------------------------------------------- | ---- | - | -------------------------------- |  | ---- | ------------------------------------ |  |  | ------- | - |  | ---- | --- | - | ---- |  | --- | - |  |  | --- | -
|Components of deferred income taxes                       |  | Components of deferredincome tax liabilities(assets) |      |   | Components recognizedin earnings |  |      | Components notrecognized in earnings | 
|                                                          |  | 2015                                                 |      |   | 2014                             |  |      | 2015                                 |  |  | 2014(b) |   |  | 2015 |     |   | 2014 | 
|Receivables, inventories and accrued liabilities          |  |                                                      | (144 | ) |                                  |  | (115 | )                                    |  |  | (32     | ) |  |      | 20  |   |      |  | 3   |   |  |  | 3   |  
|Property, plant and equipment                             |  |                                                      | 529  |   |                                  |  | 457  |                                      |  |  | 131     |   |  |      | 26  |   |      |  | (59 | ) |  |  | (26 | )
|Intangibles                                               |  |                                                      | 111  |   |                                  |  | 138  |                                      |  |  | (21     | ) |  |      | (29 | ) |      |  | (6  | ) |  |  | (6  | )
|Asset retirement and environmental remediation provisions |  |                                                      | (137 | ) |                                  |  | (145 | )                                    |  |  | 1       |   |  |      | 7   |   |      |  | 7   |   |  |  | 4   |  
|Deferred partnership income                               |  |                                                      | 58   |   |                                  |  | 119  |                                      |  |  | (44     | ) |  |      | (56 | ) |      |  | (17 | ) |  |  | (12 | )
|Loss carry-forwards (a)                                   |  |                                                      | (44  | ) |                                  |  | (59  | )                                    |  |  | 8       |   |  |      | 1   |   |      |  | 7   |   |  |  | 6   |  
|Other                                                     |  |                                                      | (43  | ) |                                  |  | (48  | )                                    |  |  | 7       |   |  |      | (28 | ) |      |  | (2  | ) |  |  | (18 | )
|Net deferred income tax liabilities                       |  |                                                      | 330  |   |                                  |  | 347  |                                      |  |  | 50      |   |  |      | (59 | ) |      |  | (67 | ) |  |  | (49 | )
|Deferred income tax assets                                |  |                                                      | (53  | ) |                                  |  | (75  | )                                    |  |  |         |   |  |      |     |   |      |  |     |   |  |  |     |  
|Deferred income tax liabilities                           |  |                                                      | 383  |   |                                  |  | 422  |                                      |  |  |         |   |  |      |     |   |      |  |     |   |  |  |     |  
|Net deferred income tax liabilities                       |  |                                                      | 330  |   |                                  |  | 347  |                                      |  |  |         |   |  |      |     |   |      |  |     |   |  |  |     |  



|(a) | Unused tax losses of $43-million (2014  $57-million) expiring through 2035 (2014  expiring through 2034) have not been recognized in the financial statements. We have recognized unused tax losses of
$30-million (2014  $53-million) as we expect to earn future taxable income in that tax jurisdiction in 2016 and following years, and the tax losses do not expire under current tax legislation.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Components recognized in continuing operations and discontinued operations.
|--- | ---------------------------------------------------------------------------



|8. |  | POST-EMPLOYMENT BENEFITS
|-- |  | ------------------------

We sponsor post-employment pension and medical plans subject to broadly similar
regulatory frameworks in Canada and the United States. For funded plans, we contribute to trustee-administered plans that are legally separate from Agrium. Regulations in each country govern the administration of assets that we hold in trust for the
plans. We are responsible for governance, which includes oversight of all aspects of the plans, including investment and contribution decisions. Our pension committee assists in managing the plans, including the appointment of independent trustees,
actuaries and investment professionals. Fewer than 15 percent of our employees are members of defined benefit pension plans that provide pension benefits at retirement based on years of service and final average salary contributions. Entitlement to
benefits is generally conditional on the employee remaining in service for a minimum period or reaching a specified age. We engage a qualified actuary to perform calculations of our net benefit obligations using the projected unit credit method.

Post-employment benefit plans expose us to actuarial risks such as longevity risk, interest rate risk and market (investment) risk. We fund the cost of the
registered and qualified defined benefit pension plans based on minimum statutory requirements. Our contributions include the cost of any current year accrual and any amortized payments relating to past service. We have the right to increase
contributions beyond the minimum requirement. We do not fund the majority of pension obligations for executive plans. Employees cannot contribute to the defined benefit pension plans. The estimated contribution to fund our defined benefit pension
plans for 2016 is $7-million.



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 107



---





|                                          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|----------------------------------------- |  | ----------------------------- | ---- | - | ----------------------------------- |  | --- | --- |  |  | ---------- | - |  | ---------- | --- | - | --- |  | -- | ----- |  |  | --- | - |  |  | ---- | -
|Continuity of obligation and plan assets  | 
|                                          |  | Defined benefit pension plans |      |   | Other post-employment benefit plans |  |     |     | 
|                                          |  | Obligation                    |      |   | Planassets                          |  |     | Net |  |  | Obligation |   |  | Planassets |     |   | Net |  |    | Total | 
|December 31, 2014                         |  |                               | (354 | ) |                                     |  | 281 |     |  |  | (73        | ) |  |            | (78 | ) |     |  |   |       |  |  | (78 | ) |  |  | (151 | )
|Expense included in earnings              |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|Service cost                              |  |                               | (6   | ) |                                     |  |    |     |  |  | (6         | ) |  |            | (3  | ) |     |  |   |       |  |  | (3  | ) |  |  | (9   | )
|Past service cost                         |  |                               | (2   | ) |                                     |  |    |     |  |  | (2         | ) |  |            | 1   |   |     |  |   |       |  |  | 1   |   |  |  | (1   | )
|Interest (expense) income                 |  |                               | (12  | ) |                                     |  | 10  |     |  |  | (2         | ) |  |            | (2  | ) |     |  |   |       |  |  | (2  | ) |  |  | (4   | )
|Administrative costs                      |  |                               |     |   |                                     |  | (1  | )   |  |  | (1         | ) |  |            |    |   |     |  |   |       |  |  |    |   |  |  | (1   | )
|                                          |  |                               | (20  | ) |                                     |  | 9   |     |  |  | (11        | ) |  |            | (4  | ) |     |  |   |       |  |  | (4  | ) |  |  | (15  | )
|Included in other comprehensive income    |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|Actuarial gain (loss) arising from:       |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|Liability experience adjustments          |  |                               | 3    |   |                                     |  |    |     |  |  | 3          |   |  |            | 3   |   |     |  |   |       |  |  | 3   |   |  |  | 6    |  
|Changes in financial assumptions          |  |                               | 7    |   |                                     |  |    |     |  |  | 7          |   |  |            |    |   |     |  |   |       |  |  |    |   |  |  | 7    |  
|Return on plan assets, excluding interest |  |                               |     |   |                                     |  | 1   |     |  |  | 1          |   |  |            |    |   |     |  |   |       |  |  |    |   |  |  | 1    |  
|                                          |  |                               | 10   |   |                                     |  | 1   |     |  |  | 11         |   |  |            | 3   |   |     |  |   |       |  |  | 3   |   |  |  | 14   |  
|Cash flows                                |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|Employee contributions                    |  |                               |     |   |                                     |  |    |     |  |  |           |   |  |            | (1  | ) |     |  | 1  |       |  |  |    |   |  |  |     |  
|Employer contributions                    |  |                               |     |   |                                     |  | 8   |     |  |  | 8          |   |  |            |    |   |     |  |   |       |  |  |    |   |  |  | 8    |  
|Benefits paid                             |  |                               | 16   |   |                                     |  | (13 | )   |  |  | 3          |   |  |            | 3   |   |     |  | (1 | )     |  |  | 2   |   |  |  | 5    |  
|                                          |  |                               | 16   |   |                                     |  | (5  | )   |  |  | 11         |   |  |            | 2   |   |     |  |   |       |  |  | 2   |   |  |  | 13   |  
|Foreign currency translation              |  |                               | 38   |   |                                     |  | (33 | )   |  |  | 5          |   |  |            | 10  |   |     |  |   |       |  |  | 10  |   |  |  | 15   |  
|December 31, 2015                         |  |                               | (310 | ) |                                     |  | 253 |     |  |  | (57        | ) |  |            | (67 | ) |     |  |   |       |  |  | (67 | ) |  |  | (124 | )
|Arising from:                             |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |     |  |    |       |  |  |     |   |  |  |      |  
|Funded plans                              |  |                               | (262 | ) |                                     |  |     |     |  |  |            |   |  |            |    |   |     |  |    |       |  |  |     |   |  |  | (262 | )
|Unfunded plans                            |  |                               | (48  | ) |                                     |  |     |     |  |  |            |   |  |            | (67 | ) |     |  |    |       |  |  |     |   |  |  | (115 | )
|December 31, 2015                         |  |                               | (310 | ) |                                     |  |     |     |  |  |            |   |  |            | (67 | ) |     |  |    |       |  |  |     |   |  |  | (377 | )



|    |  |                          
|--- |  | -------------------------
|108 |  | AGRIUM ANNUAL REPORT
2015



---





|                                          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|----------------------------------------- |  | ----------------------------- | ---- | - | ----------------------------------- |  | --- | --- |  |  | ---------- | - |  | ---------- | --- | - | ---- |  | -- | ----- |  |  | --- | - |  |  | ---- | -
|Continuity of obligation and plan assets  | 
|                                          |  | Defined benefit pension plans |      |   | Other post-employment benefit plans |  |     |     | 
|                                          |  | Obligation                    |      |   | Planassets                          |  |     | Net |  |  | Obligation |   |  | Planassets |     |   | Net  |  |    | Total | 
|December 31, 2013                         |  |                               | (324 | ) |                                     |  | 258 |     |  |  | (66        | ) |  |            | (69 | ) |      |  |   |       |  |  | (69 | ) |  |  | (135 | )
|Expense included in earnings              |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Service cost                              |  |                               | (6   | ) |                                     |  |    |     |  |  | (6         | ) |  |            | (3  | ) |      |  |   |       |  |  | (3  | ) |  |  | (9   | )
|Interest income (expense)                 |  |                               | (14  | ) |                                     |  | 11  |     |  |  | (3         | ) |  |            | (3  | ) |      |  |   |       |  |  | (3  | ) |  |  | (6   | )
|Administrative costs                      |  |                               |     |   |                                     |  | (1  | )   |  |  | (1         | ) |  |            |    |   |      |  |   |       |  |  |    |   |  |  | (1   | )
|                                          |  |                               | (20  | ) |                                     |  | 10  |     |  |  | (10        | ) |  |            | (6  | ) |      |  |   |       |  |  | (6  | ) |  |  | (16  | )
|Included in other comprehensive income    |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Actuarial gain (loss) arising from:       |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Liability experience adjustments          |  |                               | 2    |   |                                     |  |    |     |  |  | 2          |   |  |            |    |   |      |  |   |       |  |  |    |   |  |  | 2    |  
|Changes in demographic assumptions        |  |                               | (10  | ) |                                     |  |    |     |  |  | (10        | ) |  |            | 2   |   |      |  |   |       |  |  | 2   |   |  |  | (8   | )
|Changes in financial assumptions          |  |                               | (38  | ) |                                     |  |    |     |  |  | (38        | ) |  |            | (11 | ) |      |  |   |       |  |  | (11 | ) |  |  | (49  | )
|Return on plan assets, excluding interest |  |                               |     |   |                                     |  | 24  |     |  |  | 24         |   |  |            |    |   |      |  |   |       |  |  |    |   |  |  | 24   |  
|                                          |  |                               | (46  | ) |                                     |  | 24  |     |  |  | (22        | ) |  |            | (9  | ) |      |  |   |       |  |  | (9  | ) |  |  | (31  | )
|Cash flows                                |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Employee contributions                    |  |                               |     |   |                                     |  |    |     |  |  |           |   |  |            | (1  | ) |      |  | 1  |       |  |  |    |   |  |  |     |  
|Employer contributions                    |  |                               |     |   |                                     |  | 16  |     |  |  | 16         |   |  |            |    |   |      |  |   |       |  |  |    |   |  |  | 16   |  
|Benefits paid                             |  |                               | 17   |   |                                     |  | (14 | )   |  |  | 3          |   |  |            | 3   |   |      |  | (1 | )     |  |  | 2   |   |  |  | 5    |  
|                                          |  |                               | 17   |   |                                     |  | 2   |     |  |  | 19         |   |  |            | 2   |   |      |  |   |       |  |  | 2   |   |  |  | 21   |  
|Foreign currency translation              |  |                               | 19   |   |                                     |  | (13 | )   |  |  | 6          |   |  |            | 4   |   |      |  |   |       |  |  | 4   |   |  |  | 10   |  
|December 31, 2014                         |  |                               | (354 | ) |                                     |  | 281 |     |  |  | (73        | ) |  |            | (78 | ) |      |  |   |       |  |  | (78 | ) |  |  | (151 | )
|Arising from:                             |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Funded plans                              |  |                               | (299 | ) |                                     |  |     |     |  |  |            |   |  |            |    |   |      |  |    |       |  |  |     |   |  |  | (299 | )
|Unfunded plans                            |  |                               | (55  | ) |                                     |  |     |     |  |  |            |   |  |            | (78 | ) |      |  |    |       |  |  |     |   |  |  | (133 | )
|December 31, 2014                         |  |                               | (354 | ) |                                     |  |     |     |  |  |            |   |  |            | (78 | ) |      |  |    |       |  |  |     |   |  |  | (432 | )
|                                          |  |                               |      |   |                                     |  |    
|Post-employment benefits expense          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       | 
|                                          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   | 2015 |  |    | 2014  | 
|Defined contribution pension plans        |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 54  |   |  |  | 57   |  
|Defined benefit pension plans             |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 11  |   |  |  | 10   |  
|Other post-employment benefit plans       |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 4   |   |  |  | 6    |  
|                                          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 69  |   |  |  | 73   |  
|Expense line items                        |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  |     |   |  |  |      |  
|Cost of product sold                      |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 32  |   |  |  | 38   |  
|General and administrative                |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 27  |   |  |  | 26   |  
|Other expenses                            |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 5   |   |  |  | 3    |  
|Other finance costs                       |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 5   |   |  |  | 6    |  
|                                          |  |                               |      |   |                                     |  |     |     |  |  |            |   |  |            |     |   |      |  |    |       |  |  | 69  |   |  |  | 73   |  



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 109



---





Assumptions and sensitivities



|                                            |  |                           |     |  |                        |  |     |      |  |  |      |  |  |  |   | 
|------------------------------------------- |  | ------------------------- | --- |  | ---------------------- |  | --- | ---- |  |  | ---- |  |  |  | - | 
|Actuarial assumptions(%)                    |  | Future benefitsobligation |     |  | Future benefitsexpense | 
|(expressed as weighted averages)            |  | 2015                      |     |  | 2014                   |  |     | 2015 |  |  | 2014 | 
|Defined benefit pension plans               |  |                           |     |  |                        |  |     |      |  |  |      |  |  |  |   | 
|Discount rate                               |  |                           | 4   |  |                        |  | 4   |      |  |  | 4    |  |  |  | 5 | 
|Expected long-term rate of return on assets |  |                           | N/A |  |                        |  | N/A |      |  |  | 4    |  |  |  | 6 | 
|Rate of increase in compensation levels     |  |                           | 3   |  |                        |  | 3   |      |  |  | 4    |  |  |  | 4 | 
|Other post-employment benefit plans         |  |                           |     |  |                        |  |     |      |  |  |      |  |  |  |   | 
|Discount rate                               |  |                           | 4   |  |                        |  | 4   |      |  |  | 4    |  |  |  | 5 | 



|                            |  |                                                                                                                                                      
|--------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------
|Basis for key assumptions   |  |                                                                                                                                                      
|Discount rate  liabilities |  | High-quality (minimum AA) fixed income investments with cash flows that match the currency, timing and amount of the expected cash flows of the plans
|                            | 
|Rate of return  assets     |  | Long-term expectations of inflation and real return for each asset class, weighted in accordance with the investment policy for the plans            
|                            | 
|Real returns and inflation  |  | Current market conditions, historical capital market data and future expectations                                                                    
|                            | 
|Life expectancy             |  | Actuarial mortality tables published in Canada and the United States                                                                                 



|                                                                                      |  |      |      |  |      |  |      | 
|------------------------------------------------------------------------------------- |  | ---- | ---- |  | ---- |  | ---- | 
|                                                                                      |  | 2015 |      |  | 2014 | 
|Assumed and ultimate health care cost trend rates                                     |  |      |      |  |      |  |      | 
|Health care cost trend rate assumed for the next fiscal year (%)                      |  |      | 7    |  |      |  | 7    | 
|Ultimate health care cost trend rate (%)                                              |  |      | 5    |  |      |  | 5    | 
|Fiscal year the rate reaches the ultimate trend rate                                  |  |      | 2021 |  |      |  | 2021 | 
|Mortality assumptions per latest available standard mortality tables(remaining years) |  |      |      |  |      |  |      | 
|Average life expectancy  currently aged 65 years (2014  65 years)                   |  |      |      |  |      |  |      | 
|Male                                                                                  |  |      | 22   |  |      |  | 22   | 
|Female                                                                                |  |      | 24   |  |      |  | 24   | 
|Average duration of benefit obligation(years)                                         |  |      |      |  |      |  |      | 
|Active members                                                                        |  |      | 17   |  |      |  | 18   | 
|Retired members                                                                       |  |      | 11   |  |      |  | 11   | 
|Average duration of the benefit obligation                                            |  |      | 14   |  |      |  | 14   | 

A 1 percent change in discount rate would change our defined benefit obligation by approximately $55-million.

Asset allocation and investment strategy

Our
investment objective for our defined benefit pension plans is to maximize long-term return on plan assets using a mix of equities and fixed income investments while managing an appropriate level of risk. It is our policy not to invest in
commodities, precious metals, mineral rights, bullion or collectibles. We may use derivative financial instruments to create a desirable asset mix position, adjust the duration of a fixed income portfolio, replicate the investment performance of
interest rates or a recognized capital market index, manage currency exposure or reduce risk. We do not use derivative financial instruments to create exposures to securities that our investment policy would not permit.



|    |  |                          
|--- |  | -------------------------
|110 |  | AGRIUM ANNUAL REPORT
2015



---





|                                                 |  |                   |    |  |             |  |    |      |  |  |    | 
|------------------------------------------------ |  | ----------------- | -- |  | ----------- |  | -- | ---- |  |  | -- | 
|Defined benefit pension plans  asset allocation |  | Target allocation |    |  | Plan assets | 
|Asset categories (%)                             |  | 2016              |    |  | 2015        |  |    | 2014 | 
|Equity securities (with quoted market prices)    |  |                   | 31 |  |             |  |    |      |  |  |    | 
|Canadian equity funds                            |  |                   |    |  |             |  | 8  |      |  |  | 15 | 
|U.S. equity funds                                |  |                   |    |  |             |  | 2  |      |  |  | 24 | 
|International equity funds                       |  |                   |    |  |             |  | 18 |      |  |  | 13 | 
|Emerging market equity funds                     |  |                   |    |  |             |  | 4  |      |  |  | 3  | 
|Debt securities (with quoted market prices)      |  |                   | 68 |  |             |  |    |      |  |  |    | 
|Canadian debt securities                         |  |                   |    |  |             |  | 32 |      |  |  | 31 | 
|U.S. debt securities                             |  |                   |    |  |             |  | 35 |      |  |  | 12 | 
|Cash and other                                   |  |                   | 1  |  |             |  | 1  |      |  |  | 2  | 



|9. |  | SHARE-BASED PAYMENTS
|-- |  | --------------------



|                                       |  |                                                 |  |                                           |  |                                    |  |          |  |                                               
|-------------------------------------- |  | ----------------------------------------------- |  | ----------------------------------------- |  | ---------------------------------- |  | -------- |  | ----------------------------------------------
|Plan features                          |  |                                                 |  |                                           |  |                                    |  |          |  |                                               
|Form of payment                        |  | Eligibility                                     |  | Granted                                   |  | Vesting period                     |  | Term     |  | Settlement                                    
|Stock Options (a)                      |  | Officers and employees                          |  | Annually                                  |  | 25% per year over four years       |  | 10 years |  | Shares                                        
|                                       |  |                                                 |  |                                           | 
|Stock Appreciation Rights (SARs) (a) |  | Certain employees outside Canada                |  | Annually                                  |  | 25% per year over four years       |  | 10 years |  | Cash                                          
|                                       |  |                                                 |  |                                           | 
|Performance Share Units (PSUs)       |  | Executive officers and other eligible employees |  | Annually                                  |  | On third anniversary of grant date |  | N/A      |  | Cash                                          
|                                       |  |                                                 |  |                                           | 
|Restricted Share Units (RSUs) (a)    |  | Eligible employees                              |  | Annually                                  |  | On third anniversary of grant date |  | N/A      |  | Cash                                          
|                                       |  |                                                 |  |                                           | 
|Director Deferred Share Units (DSUs) |  | Non-executive directors                         |  | At the discretionof the Board ofDirectors |  | Fully vested upon grant            |  | N/A      |  | In cash on directors departure from the Board



|(a) | In December 2014, the Board of Directors approved changes to the Stock Option Plan applicable to awards granted subsequent to January 1, 2015. Eligible officers and employees will receive stock options and RSUs in
place of tandem stock appreciation rights, which we no longer issue. Tandem stock appreciation rights granted in Canada prior to January 1, 2015 have similar terms and vesting conditions to SARs and also provide the holder with the ability to
choose between receiving the price of our shares on the date of exercise in excess of the exercise price of the right, and receiving common shares by paying the exercise price of the right. Our past experience and future expectation is that
substantially all option holders will elect to exercise their options as a SAR, surrendering their options and receiving settlement in cash.
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

Stock Option and Stock Appreciation Rights Plans



|                                                                                |  |       |       |   |               |  |        |       |  |  |               |   |  |  |       | 
|------------------------------------------------------------------------------- |  | ----- | ----- | - | ------------- |  | ------ | ----- |  |  | ------------- | - |  |  | ----- | 
|Stock option and SAR activity                                                   |  |       |       |   |               |  |        |       |  |  |               |  
|                                                                                |  | 2015  |       |   | 2014          | 
|(number of units in thousands; weighted average exercise price in U.S. dollars) |  | Units |       |   | Exerciseprice |  |        | Units |  |  | Exerciseprice |  
|Outstanding, beginning of year                                                  |  |       | 2,185 |   |               |  | 82.06  |       |  |  | 2,592         |   |  |  | 65.62 | 
|Granted                                                                         |  |       | 522   |   |               |  | 115.87 |       |  |  | 582           |   |  |  | 90.53 | 
|Forfeited                                                                       |  |       | (87   | ) |               |  | 100.76 |       |  |  | (44           | ) |  |  | 95.37 | 
|Exercised                                                                       |  |       | (487  | ) |               |  | 67.99  |       |  |  | (940          | ) |  |  | 41.23 | 
|Expired                                                                         |  |       | (3    | ) |               |  | 91.13  |       |  |  | (5            | ) |  |  | 98.96 | 
|Outstanding, end of year (a)                                                    |  |       | 2,130 |   |               |  | 92.78  |       |  |  | 2,185         |   |  |  | 82.06 | 
|Exercisable, end of year                                                        |  |       | 1,041 |   |               |  | 81.58  |       |  |  | 1,204         |   |  |  | 73.05 | 
|Maximum available for future grants, end of year                                |  |       | 5,197 |   |               |  |        |       |  |  | 5,208         |   |  |  |       | 
|Cash received from equity-settled awards                                        |  |       |       |   |               |  | 1      |       |  |  |               |   |  |  | 1     | 
|Weighted average fair value of outstanding                                      |  |       |       |   |               |  | 25.66  |       |  |  |               |   |  |  | 33.42 | 
|Weighted average share price at exercise date                                   |  |       |       |   |               |  | 106.86 |       |  |  |               |   |  |  | 96.39 | 



|(a) | Includes 1.707 million SARs (2014  2.182 million), of which 1.257 million (2014  1.694 million) issued prior to January 1, 2015 have options attached. Stock options and SARs with options
attached are potentially dilutive.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 111



---





|                                                                                                                                                                         |  |                           |   |  |                     |  |       |                |  |  |        |  |  |                |       |  |  |  |       | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ------------------------- | - |  | ------------------- |  | ----- | -------------- |  |  | ------ |  |  | -------------- | ----- |  |  |  | ----- | 
|Stock options and SARs outstanding
(number of units in thousands; weighted average remaining contractual life in years; weighted average exercise price in U.S.
dollars) | 
|At December 31, 2015                                                                                                                                                     |  | Options outstanding       |   |  | Options exercisable | 
|Range of exercise prices                                                                                                                                                 |  | Remainingcontractual life |   |  | Units               |  |       | Exercise price |  |  | Units  |  |  | Exercise price |      
|Less than $84.10                                                                                                                                                         |  |                           | 3 |  |                     |  | 323   |                |  |  | 54.37  |  |  |                | 323   |  |  |  | 54.37 | 
|$84.11 to $89.93                                                                                                                                                         |  |                           | 5 |  |                     |  | 249   |                |  |  | 88.25  |  |  |                | 197   |  |  |  | 88.25 | 
|$89.94 to $90.83                                                                                                                                                         |  |                           | 8 |  |                     |  | 494   |                |  |  | 90.53  |  |  |                | 110   |  |  |  | 90.53 | 
|$90.84 to $108.50                                                                                                                                                        |  |                           | 5 |  |                     |  | 569   |                |  |  | 98.43  |  |  |                | 411   |  |  |  | 97.37 | 
|$108.51 to $115.87                                                                                                                                                       |  |                           | 9 |  |                     |  | 495   |                |  |  | 115.87 |  |  |                |      |  |  |  |      | 
|                                                                                                                                                                         |  |                           | 6 |  |                     |  | 2,130 |                |  |  | 92.78  |  |  |                | 1,041 |  |  |  | 81.58 | 

Performance and Restricted Share Units

Each PSU and RSU confers a right to the holder to receive a cash payment of the fair market value of a common share of Agrium. Holders are also entitled to the value of
dividends paid on common shares in the form of additional rights or units.

PSUs vest based on total shareholder return over a three-year performance cycle, compared
to the average quarterly total shareholder return of a peer group of companies over the same period. For PSUs granted subsequent to January 1, 2015, free cash flow per share over a three-year performance cycle is compared to Board-approved
targets as an additional performance condition. We base the value of each PSU granted on the average closing price of our common shares on the NYSE during the last five days of the three-year cycle. RSUs are not subject to performance conditions and
vest at the end of the three-year vesting period.



|                                                   |  |      |        |   |      |  |       |     |  |  |       |  
|-------------------------------------------------- |  | ---- | ------ | - | ---- |  | ----- | --- |  |  | ----- | -
|PSU and RSU activity(number of units in thousands) |  |      |        |   |      |  |       |     | 
|                                                   |  | 2015 |        |   | 2014 | 
|                                                   |  | PSU  |        |   | RSU  |  |       | PSU | 
|Outstanding, beginning of year                     |  |      | 623    |   |      |  |      |     |  |  | 629   |  
|Granted                                            |  |      | 220    |   |      |  | 128   |     |  |  | 254   |  
|Forfeited                                          |  |      | (18    | ) |      |  | (7    | )   |  |  | (86   | )
|Exercised                                          |  |      | (217   | ) |      |  |      |     |  |  | (174  | )
|Outstanding, end of year                           |  |      | 608    |   |      |  | 121   |     |  |  | 623   |  
|Weighted average fair value of outstanding         |  |      | 109.43 |   |      |  | 90.50 |     |  |  | 97.81 |  



|                                                  |  |              |     |  |      |  |     | 
|------------------------------------------------- |  | ------------ | --- |  | ---- |  | --- | 
|Other information                                 | 
|Compensation expense by plan                      |  |              |     |  |      | 
|                                                  |  | 2015         |     |  | 2014 | 
|Stock options                                     |  |              | 5   |  |      |  |    | 
|SARs                                              |  |              |    |  |      |  | 21  | 
|PSUs and RSUs                                     |  |              | 41  |  |      |  | 24  | 
|DSUs                                              |  |              | 5   |  |      |  | 5   | 
|                                                  |  |              | 51  |  |      |  | 50  | 
|Liabilities for
cash-settled plans                | 
|                                                  |  | December 31, |    
|                                                  |  | 2015         |     |  | 2014 | 
|Total fair value liability for cash-settled plans |  |              | 106 |  |      |  | 123 | 
|Total intrinsic liability for cash-settled plans  |  |              | 69  |  |      |  | 83  | 

At December 31, 2015, unrecognized compensation expense for unvested awards was $38-million. During 2015, we settled $46-million of
awards in cash.



|    |  |                          
|--- |  | -------------------------
|112 |  | AGRIUM ANNUAL REPORT
2015



---





Valuation models

We determine the fair value of stock options and SARs using a Black-Scholes model and the fair value of PSUs and RSUs using a Monte Carlo simulation model. We estimate
expected annual volatility taking into consideration historic share price volatility.



|                                                                         |  |              |       |   |      |  |       |  
|------------------------------------------------------------------------ |  | ------------ | ----- | - | ---- |  | ----- | -
|Valuation model inputs                                                   |  |              |       |   |      | 
|                                                                         |  | December 31, |      
|                                                                         |  | 2015         |       |   | 2014 | 
|Grant price (NYSE closing price on day immediately preceding grant date) |  |              | 80.41 |   |      |  | 81.24 |  
|Share price (NYSE closing price at December 31)                          |  |              | 89.34 |   |      |  | 94.72 |  
|Expected annual volatility (%)                                           |  |              | 31.57 |   |      |  | 33.57 |  
|Risk-free interest rate (%)                                              |  |              | 1.55  |   |      |  | 1.48  |  
|Expected annual dividend yield (%)                                       |  |              | 3.92  |   |      |  | 3.29  |  
|Expected life (years)                                                    |  |              | 5     |   |      |  | 6     |  
|Forfeiture rate (%)                                                      |  |              | 3.98  |   |      |  | 4.04  |  
|10. CASH FLOW INFORMATION                                                |  |              |       |   |      |  |       |  
|Cash and cash equivalents                                                |  |              |       |   |      | 
|                                                                         |  | December 31, |      
|                                                                         |  | 2015         |       |   | 2014 | 
|Cash                                                                     |  |              | 503   |   |      |  | 787   |  
|Short-term investments (original maturity of three months or less)       |  |              | 12    |   |      |  | 61    |  
|                                                                         |  |              | 515   |   |      |  | 848   |  
|                                                                         |  |             
|Net changes in non-cash operating working capital                        |  |              |       |   |      | 
|                                                                         |  | December 31, |      
|                                                                         |  | 2015         |       |   | 2014 | 
|Accounts receivable                                                      |  |              | (106  | ) |      |  | 14    |  
|Inventories                                                              |  |              | 79    |   |      |  | (185  | )
|Prepaid expenses and deposits                                            |  |              | 10    |   |      |  | 84    |  
|Accounts payable                                                         |  |              | (76   | ) |      |  | (8    | )
|                                                                         |  |              | (93   | ) |      |  | (95   | )
|11. ACCOUNTS RECEIVABLE                                                  |  |              |       |   |      |  |       |  
|                                                                         |  | December 31, |      
|                                                                         |  | 2015         |       |   | 2014 | 
|Trade accounts                                                           |  |              | 1,859 |   |      |  | 1,849 |  
|Allowance for doubtful accounts                                          |  |              | (81   | ) |      |  | (79   | )
|Rebates                                                                  |  |              | 150   |   |      |  | 188   |  
|Other non-trade accounts                                                 |  |              | 51    |   |      |  | 58    |  
|Derivative financial instruments                                         |  |              | 48    |   |      |  | 33    |  
|Other taxes                                                              |  |              | 26    |   |      |  | 26    |  
|                                                                         |  |              | 2,053 |   |      |  | 2,075 |  



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 113



---





|12. |  | INVENTORIES
|--- |  | -----------



|                             |  |              |       |  |      |  |       | 
|---------------------------- |  | ------------ | ----- |  | ---- |  | ----- | 
|                             |  | December 31, |      
|                             |  | 2015         |       |  | 2014 | 
|Raw materials                |  |              | 379   |  |      |  | 409   | 
|Finished goods               |  |              | 365   |  |      |  | 346   | 
|Other product for resale (a) |  |              | 2,570 |  |      |  | 2,750 | 
|                             |  |              | 3,314 |  |      |  | 3,505 | 



|(a) | Includes biological assets of $28-million (2014  $35-million) measured at fair value less costs of disposal, a Level 3 measurement.
|--- | ------------------------------------------------------------------------------------------------------------------------------------



|13. |  | PROPERTY, PLANT AND EQUIPMENT
|--- |  | -----------------------------



|                             |  |      |     |   |                           |  |       |                        |  |  |                          |   |  |       |        |   |       |  |     |   |  |  |        |  
|---------------------------- |  | ---- | --- | - | ------------------------- |  | ----- | ---------------------- |  |  | ------------------------ | - |  | ----- | ------ | - | ----- |  | --- | - |  |  | ------ | -
|December 31, 2015            |  | Land |     |   | Buildings andimprovements |  |       | Machineryand equipment |  |  | Assets underconstruction |   |  | Other |        |   | Total | 
|Cost                         |  |      |     |   |                           |  |       |                        |  |  |                          |   |  |       |        |   |       |  |     |   |  |  |        |  
|December 31, 2014            |  |      | 137 |   |                           |  | 1,307 |                        |  |  | 4,016                    |   |  |       | 3,502  |   |       |  | 190 |   |  |  | 9,152  |  
|Additions                    |  |      | 4   |   |                           |  | 65    |                        |  |  | 240                      |   |  |       | 954    |   |       |  | 1   |   |  |  | 1,264  |  
|Business acquisitions        |  |      | 2   |   |                           |  | 20    |                        |  |  | 30                       |   |  |       |       |   |       |  |    |   |  |  | 52     |  
|Disposals                    |  |      | (5  | ) |                           |  | (27   | )                      |  |  | (114                     | ) |  |       |       |   |       |  |    |   |  |  | (146   | )
|Transfers (a)                |  |      |    |   |                           |  | 2,214 |                        |  |  | 805                      |   |  |       | (3,031 | ) |       |  | 12  |   |  |  |       |  
|Other adjustments            |  |      | (3  | ) |                           |  | (12   | )                      |  |  | (34                      | ) |  |       | 3      |   |       |  |    |   |  |  | (46    | )
|Foreign currency translation |  |      | (9  | ) |                           |  | (260  | )                      |  |  | (564                     | ) |  |       | (219   | ) |       |  | (18 | ) |  |  | (1,070 | )
|December 31, 2015            |  |      | 126 |   |                           |  | 3,307 |                        |  |  | 4,379                    |   |  |       | 1,209  |   |       |  | 185 |   |  |  | 9,206  |  
|Accumulated depreciation     |  |      |     |   |                           |  |       |                        |  |  |                          |   |  |       |        |   |       |  |     |   |  |  |        |  
|December 31, 2014            |  |      |    |   |                           |  | (566  | )                      |  |  | (2,254                   | ) |  |       |       |   |       |  | (60 | ) |  |  | (2,880 | )
|Depreciation                 |  |      |    |   |                           |  | (89   | )                      |  |  | (284                     | ) |  |       |       |   |       |  | (8  | ) |  |  | (381   | )
|Disposals                    |  |      |    |   |                           |  | 11    |                        |  |  | 89                       |   |  |       |       |   |       |  |    |   |  |  | 100    |  
|Foreign currency translation |  |      |    |   |                           |  | 41    |                        |  |  | 241                      |   |  |       |       |   |       |  | 6   |   |  |  | 288    |  
|December 31, 2015            |  |      |    |   |                           |  | (603  | )                      |  |  | (2,208                   | ) |  |       |       |   |       |  | (62 | ) |  |  | (2,873 | )
|Net book value               |  |      | 126 |   |                           |  | 2,704 |                        |  |  | 2,171                    |   |  |       | 1,209  |   |       |  | 123 |   |  |  | 6,333  |  



|(a) | We transferred $2.6-billion related to the Vanscoy expansion project from assets under construction to buildings and improvements and machinery and equipment when the assets became available for use.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|                             |  |      |     |   |                             |  |       |                          |  |  |                          |   |  |       |       |   |       |  |     |   |  |  |        |  
|---------------------------- |  | ---- | --- | - | --------------------------- |  | ----- | ------------------------ |  |  | ------------------------ | - |  | ----- | ----- | - | ----- |  | --- | - |  |  | ------ | -
|December 31, 2014            |  | Land |     |   | Buildings and  improvements |  |       | Machinery  and equipment |  |  | Assets underconstruction |   |  | Other |       |   | Total | 
|Cost                         |  |      |     |   |                             |  |       |                          |  |  |                          |   |  |       |       |   |       |  |     |   |  |  |        |  
|December 31, 2013            |  |      | 140 |   |                             |  | 1,313 |                          |  |  | 3,650                    |   |  |       | 2,460 |   |       |  | 157 |   |  |  | 7,720  |  
|Additions                    |  |      | 4   |   |                             |  | 14    |                          |  |  | 510                      |   |  |       | 1,563 |   |       |  | 16  |   |  |  | 2,107  |  
|Business acquisitions        |  |      | 1   |   |                             |  | 11    |                          |  |  | 31                       |   |  |       |      |   |       |  |    |   |  |  | 43     |  
|Disposals                    |  |      | (3  | ) |                             |  | (8    | )                        |  |  | (134                     | ) |  |       |      |   |       |  | (2  | ) |  |  | (147   | )
|Transfers                    |  |      |    |   |                             |  | 41    |                          |  |  | 170                      |   |  |       | (238  | ) |       |  | 27  |   |  |  |       |  
|Other adjustments            |  |      |    |   |                             |  | (1    | )                        |  |  | 28                       |   |  |       | (52   | ) |       |  |    |   |  |  | (25    | )
|Foreign currency translation |  |      | (5  | ) |                             |  | (63   | )                        |  |  | (239                     | ) |  |       | (231  | ) |       |  | (8  | ) |  |  | (546   | )
|December 31, 2014            |  |      | 137 |   |                             |  | 1,307 |                          |  |  | 4,016                    |   |  |       | 3,502 |   |       |  | 190 |   |  |  | 9,152  |  
|Accumulated depreciation     |  |      |     |   |                             |  |       |                          |  |  |                          |   |  |       |       |   |       |  |     |   |  |  |        |  
|December 31, 2013            |  |      |    |   |                             |  | (517  | )                        |  |  | (2,186                   | ) |  |       |      |   |       |  | (57 | ) |  |  | (2,760 | )
|Depreciation                 |  |      |    |   |                             |  | (81   | )                        |  |  | (326                     | ) |  |       |      |   |       |  | (8  | ) |  |  | (415   | )
|Disposals                    |  |      |    |   |                             |  | 4     |                          |  |  | 107                      |   |  |       |      |   |       |  | 2   |   |  |  | 113    |  
|Other adjustments            |  |      |    |   |                             |  | 2     |                          |  |  | 11                       |   |  |       |      |   |       |  |    |   |  |  | 13     |  
|Foreign currency translation |  |      |    |   |                             |  | 26    |                          |  |  | 140                      |   |  |       |      |   |       |  | 3   |   |  |  | 169    |  
|December 31, 2014            |  |      |    |   |                             |  | (566  | )                        |  |  | (2,254                   | ) |  |       |      |   |       |  | (60 | ) |  |  | (2,880 | )
|Net book value               |  |      | 137 |   |                             |  | 741   |                          |  |  | 1,762                    |   |  |       | 3,502 |   |       |  | 130 |   |  |  | 6,272  |  



|    |  |                          
|--- |  | -------------------------
|114 |  | AGRIUM ANNUAL REPORT
2015



---





|                                                     |  |      |      |   |      |  |     |  
|---------------------------------------------------- |  | ---- | ---- | - | ---- |  | --- | -
|Depreciation of property, plant and equipment        |  |      |      |   |      | 
|                                                     |  | 2015 |      |   | 2014 | 
|Cost of product sold                                 |  |      | 210  |   |      |  | 226 |  
|Selling                                              |  |      | 145  |   |      |  | 175 |  
|General and administrative                           |  |      | 20   |   |      |  | 22  |  
|                                                     |  |      | 375  |   |      |  | 423 |  
|Depreciation recorded in inventory                   |  |      | 17   |   |      |  | 10  |  
|Turnaround costs included in machinery and equipment |  |      |      |   |      | 
|                                                     |  | 2015 |      |   | 2014 | 
|Cost                                                 |  |      |      |   |      |  |     |  
|Balance, beginning of year                           |  |      | 246  |   |      |  | 180 |  
|Additions                                            |  |      | 79   |   |      |  | 89  |  
|Retirements                                          |  |      | (50  | ) |      |  | (23 | )
|Other adjustments                                    |  |      | (2   | ) |      |  |    |  
|Balance, end of year                                 |  |      | 273  |   |      |  | 246 |  
|Accumulated depreciation                             |  |      |      |   |      |  |     |  
|Balance, beginning of year                           |  |      | (94  | ) |      |  | (61 | )
|Depreciation                                         |  |      | (58  | ) |      |  | (55 | )
|Retirements                                          |  |      | 50   |   |      |  | 22  |  
|Balance, end of year                                 |  |      | (102 | ) |      |  | (94 | )
|Net book value                                       |  |      | 171  |   |      |  | 152 |  

Turnaround costs include replacement or overhaul of equipment and items such as compressors, turbines, pumps, motors, valves, piping and
other parts; assessment of production equipment; replacement of aged catalysts; new installation or recalibration of measurement and control devices; and other costs. We capitalize turnaround costs only if they meet the capitalization criteria of
IFRS.



|14. |  | INTANGIBLES AND GOODWILL
|--- |  | ------------------------



|                                               |  |               |    |   |                          |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|---------------------------------------------- |  | ------------- | -- | - | ------------------------ |  | ---- | ---------- |  |  | ----- | - |  | ---------------- | ---- | - | -------- |  | ----- | - |  |  | ----- | -
|December 31, 2015                              |  | Tradenames(a) |    |   | Customerrelationships(b) |  |      | Technology |  |  | Other |   |  | Totalintangibles |      |   | Goodwill | 
|Cost                                           |  |               |    |   |                          |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|December 31, 2014                              |  |               | 32 |   |                          |  | 739  |            |  |  | 197   |   |  |                  | 227  |   |          |  | 1,195 |   |  |  | 2,214 |  
|Additions                                      |  |               |   |   |                          |  |     |            |  |  | 18    |   |  |                  |     |   |          |  | 18    |   |  |  |      |  
|Business acquisitions                          |  |               |   |   |                          |  | 35   |            |  |  |      |   |  |                  | 17   |   |          |  | 52    |   |  |  |      |  
|Disposals                                      |  |               |   |   |                          |  |     |            |  |  | (45   | ) |  |                  |     |   |          |  | (45   | ) |  |  |      |  
|Other adjustments                              |  |               |   |   |                          |  |     |            |  |  |      |   |  |                  | (9   | ) |          |  | (9    | ) |  |  | 4     |  
|Foreign currency translation                   |  |               | (2 | ) |                          |  | (19  | )          |  |  | (22   | ) |  |                  | (2   | ) |          |  | (45   | ) |  |  | (41   | )
|December 31, 2015                              |  |               | 30 |   |                          |  | 755  |            |  |  | 148   |   |  |                  | 233  |   |          |  | 1,166 |   |  |  | 2,177 |  
|Accumulated amortization and impairment losses |  |               |    |   |                          |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|December 31, 2014                              |  |               | (4 | ) |                          |  | (297 | )          |  |  | (78   | ) |  |                  | (121 | ) |          |  | (500  | ) |  |  | (200  | )
|Amortization                                   |  |               | (1 | ) |                          |  | (56  | )          |  |  | (21   | ) |  |                  | (27  | ) |          |  | (105  | ) |  |  |      |  
|Impairment losses (c)                          |  |               |   |   |                          |  |     |            |  |  |      |   |  |                  |     |   |          |  |      |   |  |  | (19   | )
|Disposals                                      |  |               |   |   |                          |  |     |            |  |  | 45    |   |  |                  |     |   |          |  | 45    |   |  |  |      |  
|Other adjustments                              |  |               |   |   |                          |  |     |            |  |  |      |   |  |                  | 8    |   |          |  | 8     |   |  |  |      |  
|Foreign currency translation                   |  |               |   |   |                          |  | 7    |            |  |  | 9     |   |  |                  | 2    |   |          |  | 18    |   |  |  | 22    |  
|December 31, 2015                              |  |               | (5 | ) |                          |  | (346 | )          |  |  | (45   | ) |  |                  | (138 | ) |          |  | (534  | ) |  |  | (197  | )
|Net book value                                 |  |               | 25 |   |                          |  | 409  |            |  |  | 103   |   |  |                  | 95   |   |          |  | 632   |   |  |  | 1,980 |  



|(a) | Trade names with a net book value of $18-million have indefinite useful lives for accounting purposes.
|--- | ------------------------------------------------------------------------------------------------------

|(b) | The remaining amortization period of customer relationships at December 31, 2015, is approximately eight years.
|--- | ---------------------------------------------------------------------------------------------------------------

|(c) | We recorded an impairment of $19-million in our Wholesale Europe operations.
|--- | ----------------------------------------------------------------------------



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 115



---





|                                               |  |               |    |   |                         |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|---------------------------------------------- |  | ------------- | -- | - | ----------------------- |  | ---- | ---------- |  |  | ----- | - |  | ---------------- | ---- | - | -------- |  | ----- | - |  |  | ----- | -
|December 31, 2014                              |  | Tradenames(a) |    |   | Customer  relationships |  |      | Technology |  |  | Other |   |  | Totalintangibles |      |   | Goodwill | 
|Cost                                           |  |               |    |   |                         |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|December 31, 2013                              |  |               | 30 |   |                         |  | 730  |            |  |  | 162   |   |  |                  | 205  |   |          |  | 1,127 |   |  |  | 2,177 |  
|Additions                                      |  |               |   |   |                         |  |     |            |  |  | 49    |   |  |                  | 2    |   |          |  | 51    |   |  |  |      |  
|Business acquisitions                          |  |               | 4  |   |                         |  | 27   |            |  |  |      |   |  |                  | 24   |   |          |  | 55    |   |  |  | 87    |  
|Disposals                                      |  |               |   |   |                         |  |     |            |  |  | (1    | ) |  |                  |     |   |          |  | (1    | ) |  |  |      |  
|Other adjustments                              |  |               |   |   |                         |  | (3   | )          |  |  |      |   |  |                  | (1   | ) |          |  | (4    | ) |  |  | (14   | )
|Foreign currency translation                   |  |               | (2 | ) |                         |  | (15  | )          |  |  | (13   | ) |  |                  | (3   | ) |          |  | (33   | ) |  |  | (36   | )
|December 31, 2014                              |  |               | 32 |   |                         |  | 739  |            |  |  | 197   |   |  |                  | 227  |   |          |  | 1,195 |   |  |  | 2,214 |  
|Accumulated amortization and impairment losses |  |               |    |   |                         |  |      |            |  |  |       |   |  |                  |      |   |          |  |       |   |  |  |       |  
|December 31, 2013                              |  |               | (3 | ) |                         |  | (241 | )          |  |  | (48   | ) |  |                  | (97  | ) |          |  | (389  | ) |  |  | (219  | )
|Amortization                                   |  |               | (1 | ) |                         |  | (64  | )          |  |  | (36   | ) |  |                  | (27  | ) |          |  | (128  | ) |  |  |      |  
|Other adjustments                              |  |               |   |   |                         |  | 4    |            |  |  | (1    | ) |  |                  | 1    |   |          |  | 4     |   |  |  |      |  
|Foreign currency translation                   |  |               |   |   |                         |  | 4    |            |  |  | 7     |   |  |                  | 2    |   |          |  | 13    |   |  |  | 19    |  
|December 31, 2014                              |  |               | (4 | ) |                         |  | (297 | )          |  |  | (78   | ) |  |                  | (121 | ) |          |  | (500  | ) |  |  | (200  | )
|Net book value                                 |  |               | 28 |   |                         |  | 442  |            |  |  | 119   |   |  |                  | 106  |   |          |  | 695   |   |  |  | 2,014 |  



|(a) | Trade names with a net book value of $20-million have indefinite useful lives for accounting purposes.
|--- | ------------------------------------------------------------------------------------------------------



|                                         |  |      |     |  |      |  |     | 
|---------------------------------------- |  | ---- | --- |  | ---- |  | --- | 
|Amortization of finite-lived intangibles |  |      |     |  |      | 
|                                         |  | 2015 |     |  | 2014 | 
|Cost of product sold                     |  |      | 3   |  |      |  | 3   | 
|Selling                                  |  |      | 99  |  |      |  | 116 | 
|General and administrative               |  |      | 3   |  |      |  | 8   | 
|                                         |  |      | 105 |  |      |  | 127 | 

Goodwill impairment testing



|                                 |  |              |       |  |      |  |       | 
|-------------------------------- |  | ------------ | ----- |  | ---- |  | ----- | 
|Goodwill by cash generating unit |  |              |       |  |      | 
|                                 |  | December 31, |      
|                                 |  | 2015         |       |  | 2014 | 
|Retail  North America           |  |              | 1,858 |  |      |  | 1,859 | 
|Retail  Australia               |  |              | 115   |  |      |  | 124   | 
|Other                            |  |              | 7     |  |      |  | 31    | 
|                                 |  |              | 1,980 |  |      |  | 2,014 | 

In calculating the recoverable amount for goodwill, we selected the fair value less costs of disposal (FVLCD) methodology and
incorporated assumptions an independent market participant would apply. We adjust discount rates for each group of cash generating units (CGU) for the risk associated with achieving our forecasts (five-year projections) and for the currency in which
we expect to generate cash flows. FVLCD is a Level 3 measurement. We use our market capitalization and comparative market multiples to corroborate discounted cash flow results.

The key assumptions with the greatest influence on our calculation of the recoverable amounts are the discount rates, terminal growth rates and cash flow forecasts for
each CGU as derived from our Board approved strategic plan. Key inputs to our test of Retail  North America included a pre-tax discount rate of 10.6 percent and a terminal growth rate per annum of 2.5 percent.



|    |  |                          
|--- |  | -------------------------
|116 |  | AGRIUM ANNUAL REPORT
2015



---





|15. |  | INVESTMENTS IN ASSOCIATES AND JOINT VENTURES
|--- |  | --------------------------------------------



|                                                                                   |  |                  |              |  |              |  |    |          |  |  |              |  |  |      |     |  |  |  |     | 
|---------------------------------------------------------------------------------- |  | ---------------- | ------------ |  | ------------ |  | -- | -------- |  |  | ------------ |  |  | ---- | --- |  |  |  | --- | 
|                                                                                   |  | Reporting period |              |  | Interest (%) |  |    | Location |  |  | December 31, | 
|                                                                                   |  |                  |              |  |              |  |    |          |  |  | 2015         |  |  | 2014 |    
|Investments in associates                                                          |  |                  |              |  |              |  |    |          |  |  |              |  |  |      |     |  |  |  |     | 
|Misr Fertilizers Production Company S.A.E. (MOPCO)  a private nitrogen producer |  |                  | September 30 |  |              |  | 26 |          |  |  | Egypt        |  |  |      | 283 |  |  |  | 264 | 
|Other                                                                              |  |                  |              |  |              |  |    |          |  |  |              |  |  |      | 82  |  |  |  | 74  | 
|                                                                                   |  |                  |              |  |              |  |    |          |  |  |              |  |  |      | 365 |  |  |  | 338 | 
|Investments in joint ventures                                                      |  |                  |              |  |              |  |    |          |  |  |              |  |  |      |     |  |  |  |     | 
|Profertil S.A. (Profertil)                                                       |  |                  | December 31  |  |              |  | 50 |          |  |  | Argentina    |  |  |      | 242 |  |  |  | 234 | 
|Other                                                                              |  |                  |              |  |              |  |    |          |  |  |              |  |  |      |    |  |  |  | 4   | 
|                                                                                   |  |                  |              |  |              |  |    |          |  |  |              |  |  |      | 242 |  |  |  | 238 | 
|                                                                                   |  |                  |              |  |              |  |    |          |  |  |              |  |  |      | 607 |  |  |  | 576 | 

Associates

We
have representation on MOPCOs Board of Directors as well as employees who participate in management decision-making. Accordingly, we maintain significant influence over MOPCO. We record our share of the earnings of MOPCO on a one-quarter lag
because financial statements of MOPCO are not available on the date of issuance of our financial statements. We adjust for the effects of any significant unrecorded transactions or events between the period-end date of MOPCO and our fiscal year-end
date. Future conditions, including those related to MOPCO operating in Egypt, which has been subject to political instability and civil unrest, may restrict our ability to obtain dividends from MOPCO.



|                                           |  |              |       |   |      |  |       |  
|------------------------------------------ |  | ------------ | ----- | - | ---- |  | ----- | -
|Summarized financial information of MOPCO  |  |              |       |   |      | 
|                                           |  | December 31, |      
|                                           |  | 2015         |       |   | 2014 | 
|Current assets                             |  |              | 129   |   |      |  | 72    |  
|Non-current assets                         |  |              | 1,840 |   |      |  | 1,706 |  
|                                           |  |              | 1,969 |   |      |  | 1,778 |  
|Current liabilities                        |  |              | 233   |   |      |  | 214   |  
|Non-current liabilities                    |  |              | 966   |   |      |  | 773   |  
|                                           |  |              | 1,199 |   |      |  | 987   |  
|Net assets of MOPCO                        |  |              | 770   |   |      |  | 791   |  
|Proportionate ownership interest in MOPCO  |  |              | 200   |   |      |  | 206   |  
|Dividend receivable                        |  |              | 29    |   |      |  |      |  
|Unamortized purchase price adjustment      |  |              | 54    |   |      |  | 58    |  
|Carrying amount of interest in MOPCO       |  |              | 283   |   |      |  | 264   |  
|                                           |  |             
|                                           |  | 2015         |       |   | 2014 | 
|Sales                                      |  |              | 87    |   |      |  | 155   |  
|Net (loss) earnings                        |  |              | (4    | ) |      |  | 10    |  
|Total comprehensive (loss) income          |  |              | (4    | ) |      |  | 10    |  
|Proportionate share of MOPCO (loss) income |  |              | (1    | ) |      |  | 3     |  
|Purchase price adjustment amortization     |  |              | (4    | ) |      |  | (4    | )
|Loss from MOPCO                            |  |              | (5    | ) |      |  | (1    | )



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 117



---





We own a one-third interest in Canpotex Limited (Canpotex), which exports the portion of our produced potash
that Canpotex sells outside of Canada and the United States. Canpotex is an industry association owned equally by us and two other producers of potash in Canada. We have significant influence through our ability to appoint directors to the board of
Canpotex. We account for our investment based on our economic interest of 7.3 percent (2014  8 percent), which is our allocation of production capacity among the members of the association.

We are contractually obligated to reimburse Canpotex for our 7.3 percent share of any operating losses or other liabilities incurred by Canpotex. We believe the
probability of conditions arising that would trigger this guarantee is remote. Reimbursements, if any, would be made through reductions of our cash receipts from Canpotex.

Joint ventures

We have a 50 percent ownership
interest in Profertil  a corporation based in Argentina. Profertil is a producer and wholesale distributor of nitrogen crop nutrients. A contractual agreement establishes joint control over Profertil and provides us with 50 percent of the
voting rights. Profertil has declared dividends to us that we have loaned back to the joint venture. The loans, which are unsecured and due in 2016, total $105-million (2014  $89-million) and bear interest at a weighted average rate of 3.9
percent. We received no cash dividends during 2015 (2014  $44-million). In December 2015, the government of Argentina ended currency controls; however, Argentina is subject to economic uncertainty that could affect the timing of repayment of
the loans.



|                                               |  |              |     |   |      |  |     |  
|---------------------------------------------- |  | ------------ | --- | - | ---- |  | --- | -
|Summarized financial information of Profertil  |  |              |     |   |      | 
|                                               |  | December 31, |    
|                                               |  | 2015         |     |   | 2014 | 
|Current assets (a)                             |  |              | 262 |   |      |  | 226 |  
|Non-current assets                             |  |              | 588 |   |      |  | 630 |  
|                                               |  |              | 850 |   |      |  | 856 |  
|Current liabilities (b)                        |  |              | 366 |   |      |  | 228 |  
|Non-current liabilities (c)                    |  |              | 208 |   |      |  | 308 |  
|                                               |  |              | 574 |   |      |  | 536 |  
|Net assets of Profertil                        |  |              | 276 |   |      |  | 320 |  
|Proportionate share of net assets of Profertil |  |              | 138 |   |      |  | 160 |  
|Elimination of unrealized profit               |  |              | (1  | ) |      |  | (1  | )
|Loans and accrued interest (d)                 |  |              | 105 |   |      |  | 76  |  
|Other                                          |  |              |    |   |      |  | (1  | )
|Carrying amount of interest in Profertil       |  |              | 242 |   |      |  | 234 |  



|(a) | Includes cash and cash equivalents of $86-million (2014  $106-million).
|--- | ------------------------------------------------------------------------

|(b) | Includes current financial liabilities (excluding trade and other payables and provisions) of $150-million (2014  $70-million).
|--- | --------------------------------------------------------------------------------------------------------------------------------

|(c) | Includes non-current financial liabilities (excluding trade and other payables and provisions) of $78-million (2014  $220-million).
|--- | ------------------------------------------------------------------------------------------------------------------------------------

|(d) | Dividends receivable of nil (2014  $13-million) are included in accounts receivable.
|--- | -------------------------------------------------------------------------------------



|                                                 |  |      |     |   |      |  |     |  
|------------------------------------------------ |  | ---- | --- | - | ---- |  | --- | -
|                                                 |  | 2015 |     |   | 2014 | 
|Sales                                            |  |      | 394 |   |      |  | 469 |  
|Depreciation and amortization                    |  |      | 36  |   |      |  | 30  |  
|Interest expense                                 |  |      | 24  |   |      |  | 7   |  
|Income taxes                                     |  |      | 14  |   |      |  | 42  |  
|Net (loss) earnings                              |  |      | (10 | ) |      |  | 37  |  
|Total comprehensive (loss) income                |  |      | (10 | ) |      |  | 37  |  
|Proportionate share of Profertil (loss) earnings |  |      | (5  | ) |      |  | 18  |  
|Elimination of unrealized loss (earnings)        |  |      | 1   |   |      |  | (1  | )
|Dividends received from Profertil                |  |      |    |   |      |  | 44  |  

Summarized financial information of associates and joint ventures represents amounts that investees have recorded in their financial
statements, adjusted for any fair value adjustments at acquisition and for differences in accounting policies.



|    |  |                          
|--- |  | -------------------------
|118 |  | AGRIUM ANNUAL REPORT
2015



---





Transactions with associates and joint ventures



|                                 |  |      |     |  |      |  |     | 
|-------------------------------- |  | ---- | --- |  | ---- |  | --- | 
|                                 |  | 2015 |     |  | 2014 | 
|For the year ended December 31,  |  |      |     |  |      |  |     | 
|Sales to Canpotex                |  |      | 189 |  |      |  | 180 | 
|Purchases from MOPCO             |  |      | 5   |  |      |  | 25  | 
|Purchases from Profertil         |  |      | 53  |  |      |  | 67  | 
|As at December 31,               |  |      |     |  |      |  |     | 
|Amounts receivable from Canpotex |  |      | 18  |  |      |  | 24  | 
|Amounts owed to Profertil        |  |      | 4   |  |      |  | 4   | 

16. OTHER ASSETS



|                           |  |              |     |  |      |  |     | 
|-------------------------- |  | ------------ | --- |  | ---- |  | --- | 
|Other current assets       |  |              |     |  |      | 
|                           |  | December 31, |    
|                           |  | 2015         |     |  | 2014 | 
|Other financial assets     |  |              |     |  |      |  |     | 
|Marketable securities (a)  |  |              | 142 |  |      |  | 94  | 
|Other non-financial assets |  |              | 2   |  |      |  | 28  | 
|                           |  |              | 144 |  |      |  | 122 | 
|                           |  |             
|Other assets               |  |              |     |  |      | 
|                           |  | December 31, |    
|                           |  | 2015         |     |  | 2014 | 
|Other financial assets     |  |              |     |  |      |  |     | 
|Investments                |  |              |    |  |      |  | 4   | 
|Receivables (b)            |  |              | 37  |  |      |  | 65  | 
|                           |  |              | 37  |  |      |  | 69  | 
|Other non-financial assets |  |              | 17  |  |      |  | 9   | 
|                           |  |              | 54  |  |      |  | 78  | 



|(a) | Comprised primarily of U.S. equities (11 percent), U.S. Government debt (34 percent) and U.S. corporate debt (44 percent). All securities are rated as investment grade or higher and are capable of liquidation within
five trading days.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Unsecured term loan receivable bearing interest at 3.4 percent per annum, repayable $8-million annually until 2020.
|--- | -------------------------------------------------------------------------------------------------------------------



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 119



---





|17. |  | DEBT
|--- |  | ----



|                                  |  |          |      |  |              |  |      |              |  |  |          |   |  |  |       |  
|--------------------------------- |  | -------- | ---- |  | ------------ |  | ---- | ------------ |  |  | -------- | - |  |  | ----- | -
|                                  |  |          |      |  |              |  |      | December 31, | 
|                                  |  |          |      |  |              |  |      | 2015         |  |  | 2014     |  
|                                  |  | Maturity |      |  | Rate (%) (a) |  |      | Utilized     |  |  | Utilized |  
|Short-term debt                   |  |          |      |  |              |  |      |              |  |  |          |   |  |  |       |  
|Commercial paper (b)              |  |          | 2016 |  |              |  | 0.83 |              |  |  | 632      |   |  |  | 1,117 |  
|Credit facilities (c)(d)          |  |          |      |  |              |  | 3.22 |              |  |  | 203      |   |  |  | 410   |  
|                                  |  |          |      |  |              |  |      |              |  |  | 835      |   |  |  | 1,527 |  
|Long-term debt (e)                |  |          |      |  |              |  |      |              |  |  |          |   |  |  |       |  
|Floating rate bank loans          |  |          |     |  |              |  |      |              |  |  |         |   |  |  | 11    |  
|Fixed rate bank loans             |  |          | 2016 |  |              |  |      |              |  |  | 8        |   |  |  | 12    |  
|7.7% debentures                   |  |          | 2017 |  |              |  |      |              |  |  | 100      |   |  |  | 100   |  
|6.75% debentures                  |  |          | 2019 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|3.15% debentures                  |  |          | 2022 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|3.5% debentures                   |  |          | 2023 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|3.375% debentures                 |  |          | 2025 |  |              |  |      |              |  |  | 550      |   |  |  |      |  
|7.8% debentures                   |  |          | 2027 |  |              |  |      |              |  |  | 125      |   |  |  | 125   |  
|4.125% debentures                 |  |          | 2035 |  |              |  |      |              |  |  | 450      |   |  |  |      |  
|7.125% debentures                 |  |          | 2036 |  |              |  |      |              |  |  | 300      |   |  |  | 300   |  
|6.125% debentures                 |  |          | 2041 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|4.9% debentures                   |  |          | 2043 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|5.25% debentures                  |  |          | 2045 |  |              |  |      |              |  |  | 500      |   |  |  | 500   |  
|Other                             |  |          |      |  |              |  |      |              |  |  | 44       |   |  |  | 64    |  
|                                  |  |          |      |  |              |  |      |              |  |  | 4,577    |   |  |  | 3,612 |  
|Unamortized transaction costs     |  |          |      |  |              |  |      |              |  |  | (56      | ) |  |  | (42   | )
|Current portion of long-term debt |  |          |      |  |              |  |      |              |  |  | (8       | ) |  |  | (11   | )
|                                  |  |          |      |  |              |  |      |              |  |  | 4,513    |   |  |  | 3,559 |  



|(a) | Weighted average rates at December 31, 2015.
|--- | --------------------------------------------

|(b) | Program maximum U.S. $2.5-billion. Amounts borrowed under the commercial paper program reduce our borrowing capacity under the multi-jurisdictional credit facility.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | Short-term debt is unsecured and consists of U.S. dollar-denominated debt of $110-million, euro-denominated debt of $72-million and other debt of $21-million (2014  $274-million, $109-million and $27-million).
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Total capacity available on our multi-jurisdictional credit facility, which expires in 2020, is $2.5-billion.
|--- | -------------------------------------------------------------------------------------------------------------

|(e) | Debentures have various provisions that allow redemption prior to maturity, at our option, at specified prices.
|--- | ---------------------------------------------------------------------------------------------------------------



|                                     |  |              |       |  
|------------------------------------ |  | ------------ | ----- | -
|Debt capacity available              |  |              |      
|                                     |  | December 31, |      
|                                     |  | 2015         |      
|Multi-jurisdictional credit facility |  |              | 2,500 |  
|European facilities                  |  |              | 217   |  
|South American facilities            |  |              | 110   |  
|Australian facilities                |  |              | 50    |  
|                                     |  |              | 2,877 |  
|Short-term debt drawn                |  |              | (835  | )
|Letters of credit issued             |  |              | (1    | )
|Debt capacity available              |  |              | 2,041 |  



|    |  |                          
|--- |  | -------------------------
|120 |  | AGRIUM ANNUAL REPORT
2015



---





|18. |  | ACCOUNTS PAYABLE
|--- |  | ----------------



|                                 |  |              |       |  |      |  |       | 
|-------------------------------- |  | ------------ | ----- |  | ---- |  | ----- | 
|                                 |  | December 31, |      
|                                 |  | 2015         |       |  | 2014 | 
|Trade                            |  |              | 1,495 |  |      |  | 1,470 | 
|Customer prepayments             |  |              | 1,375 |  |      |  | 1,505 | 
|Accrued liabilities              |  |              | 729   |  |      |  | 921   | 
|Other taxes                      |  |              | 27    |  |      |  | 25    | 
|Accrued interest                 |  |              | 72    |  |      |  | 53    | 
|Dividends                        |  |              | 121   |  |      |  | 112   | 
|Derivative financial instruments |  |              | 29    |  |      |  | 18    | 
|Share-based payments             |  |              | 71    |  |      |  | 93    | 
|                                 |  |              | 3,919 |  |      |  | 4,197 | 



|19. |  | OTHER PROVISIONS
|--- |  | ----------------



|                                              |  |       |    |  |                             |  |     |                    |  |  |            |   |  |       |     |   |  |  |     |  
|--------------------------------------------- |  | ----- | -- |  | --------------------------- |  | --- | ------------------ |  |  | ---------- | - |  | ----- | --- | - |  |  | --- | -
|                                              |  | Notes |    |  | Environmentalremediation(a) |  |     | Assetretirement(b) |  |  | Litigation |   |  | Total |    
|December 31, 2014                             |  |       |    |  |                             |  | 169 |                    |  |  | 271        |   |  |       | 40  |   |  |  | 480 |  
|Additional provisions or changes in estimates |  |       | 23 |  |                             |  | 22  |                    |  |  | (25        | ) |  |       | 19  |   |  |  | 16  |  
|Draw-downs                                    |  |       |    |  |                             |  | (25 | )                  |  |  | (9         | ) |  |       | (17 | ) |  |  | (51 | )
|Reversals                                     |  |       |    |  |                             |  |    |                    |  |  |           |   |  |       | (8  | ) |  |  | (8  | )
|Accretion                                     |  |       |    |  |                             |  | 2   |                    |  |  | 5          |   |  |       |    |   |  |  | 7   |  
|Foreign currency translation                  |  |       |    |  |                             |  | (10 | )                  |  |  | (13        | ) |  |       |    |   |  |  | (23 | )
|December 31, 2015                             |  |       |    |  |                             |  | 158 |                    |  |  | 229        |   |  |       | 34  |   |  |  | 421 |  
|Current portion                               |  |       |    |  |                             |  | 33  |                    |  |  | 18         |   |  |       | 34  |   |  |  | 85  |  
|Non-current portion                           |  |       |    |  |                             |  | 125 |                    |  |  | 211        |   |  |       |    |   |  |  | 336 |  
|                                              |  |       |    |  |                             |  | 158 |                    |  |  | 229        |   |  |       | 34  |   |  |  | 421 |  



|(a) | We estimate that we will settle our environmental remediation liabilities between 2016 and 2041. We discount obligations using rates ranging from 0.65 percent to 4.19 percent (2014  0.65 percent to 4.19 percent).
Provisions include $43-million for our Idaho phosphate mining and processing sites. No individual site provision is material.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Mining, extraction, processing and distribution activities result in asset retirement obligations in the normal course of operations. Obligations include closure, dismantlement, site restoration or other legal or
constructive obligations for termination and retirement of assets. Expenditures may occur before and after closure. We expect to incur expenditures for our phosphate obligations over the next 58 years. We expect to make payments for our potash and
nitrogen obligations after that time. Timing of expenditures depends on a number of factors, such as the life and nature of the asset, legal requirements and technology. We estimate obligations using discount rates ranging from 1.39 percent to 4.55
percent (2014  1.57 percent to 4.55 percent). Provisions include $159-million for our Idaho phosphate mining and processing sites. No other site provision is material.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|20. |  | OTHER LIABILITIES
|--- |  | -----------------



|                                 |  |              |    |  |      |  |    | 
|-------------------------------- |  | ------------ | -- |  | ---- |  | -- | 
|                                 |  | December 31, |   
|                                 |  | 2015         |    |  | 2014 | 
|Other financial liabilities      |  |              |    |  |      |  |    | 
|Derivative financial instruments |  |              | 33 |  |      |  | 22 | 
|Other                            |  |              | 17 |  |      |  | 17 | 
|                                 |  |              | 50 |  |      |  | 39 | 
|Other non-financial liabilities  |  |              |    |  |      |  |    | 
|Share-based payments             |  |              | 35 |  |      |  | 30 | 
|                                 |  |              | 85 |  |      |  | 69 | 



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 121



---





|21. |  | BUSINESS ACQUISITIONS
|--- |  | ---------------------



|                                                                                                                                                            |  |              |     |  
|----------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------ | --- | -
|Provisional estimate of fair values of assets acquired and liabilities assumed in individually
immaterial business acquisitions by the Retail business unit |  |              |    
|                                                                                                                                                            |  | December 31, |    
|                                                                                                                                                            |  | 2015         |    
|Current assets                                                                                                                                              |  |              | 43  |  
|Property, plant and equipment                                                                                                                               |  |              | 52  |  
|Intangibles (a)                                                                                                                                             |  |              | 52  |  
|Current liabilities                                                                                                                                         |  |              | (20 | )
|Total consideration                                                                                                                                         |  |              | 127 |  
|(a)   Intangibles include
customer relationships of $35-million.                                                                                            |  |              |     |  
|Financial information related
to our business acquisitions                                                                                                  |  |              |    
|                                                                                                                                                            |  | 2015(a)      |    
|Sales from the date of acquisition                                                                                                                          |  |              | 94  |  
|Estimated sales if acquisitions occurred at the beginning of the year                                                                                       |  |              | 176 |  



|(a) | Net earnings and pro forma net earnings related to these acquisitions are $11-million and $17-million, respectively.
|--- | --------------------------------------------------------------------------------------------------------------------



|22. |  | COMMITMENTS
|--- |  | -----------

Operating leases

Operating lease commitments consist primarily of leases for railcars and contractual commitments at distribution facilities in our Wholesale business unit, vehicles and
application equipment in our Retail business unit, and office equipment and property leases throughout our operations. Commitments represent minimum payments under each agreement.



|                                                   |  |              |     |  |      |  |     | 
|-------------------------------------------------- |  | ------------ | --- |  | ---- |  | --- | 
|Future minimum lease payments for operating leases |  |              |     |  |      | 
|                                                   |  | December 31, |    
|                                                   |  | 2015         |     |  | 2014 | 
|Less than one year                                 |  |              | 137 |  |      |  | 137 | 
|One to five years                                  |  |              | 250 |  |      |  | 276 | 
|More than five years                               |  |              | 100 |  |      |  | 21  | 
|                                                   |  |              | 487 |  |      |  | 434 | 



|    |  |                          
|--- |  | -------------------------
|122 |  | AGRIUM ANNUAL REPORT
2015



---





Other commitments



|                                      |  |      |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|------------------------------------- |  | ---- | --- |  | ---- |  | --- | ---- |  |  | ---- |  |  | ---- | --- |  |  |  | --- | 
|                                      |  | 2016 |     |  | 2017 |  |     | 2018 |  |  | 2019 |  |  | 2020 |    
|Operating                             |  |      |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Long-term debt  interest             |  |      | 226 |  |      |  | 219 |      |  |  | 218  |  |  |      | 185 |  |  |  | 183 | 
|Cost of product sold                  |  |      |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Natural gas and other (a)(b)          |  |      | 241 |  |      |  | 112 |      |  |  | 15   |  |  |      | 16  |  |  |  | 15  | 
|Power, sulfuric acid and other (c)(d) |  |      | 203 |  |      |  | 163 |      |  |  | 156  |  |  |      | 42  |  |  |  | 34  | 
|Purchase commitments                  |  |      | 75  |  |      |  | 6   |      |  |  |     |  |  |      |    |  |  |  |    | 
|Derivative financial instruments      |  |      |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Foreign exchange                      |  |      | 6   |  |      |  |    |      |  |  |     |  |  |      |    |  |  |  |    | 
|Natural gas                           |  |      | 23  |  |      |  | 18  |      |  |  | 15   |  |  |      |    |  |  |  |    | 
|Other commitments                     |  |      | 121 |  |      |  | 52  |      |  |  | 52   |  |  |      | 9   |  |  |  | 8   | 
|                                      |  |      | 895 |  |      |  | 570 |      |  |  | 456  |  |  |      | 252 |  |  |  | 240 | 
|Capital (e)                           |  |      |     |  |      |  |     |      |  |  |      |  |  |      |     |  |  |  |     | 
|Long-term debt  principal repayments |  |      | 8   |  |      |  | 100 |      |  |  |     |  |  |      | 500 |  |  |  |    | 
|Asset retirement obligations          |  |      | 18  |  |      |  | 2   |      |  |  | 2    |  |  |      | 22  |  |  |  | 16  | 
|Environmental remediation liabilities |  |      | 33  |  |      |  | 35  |      |  |  | 24   |  |  |      | 13  |  |  |  | 11  | 
|                                      |  |      | 59  |  |      |  | 137 |      |  |  | 26   |  |  |      | 535 |  |  |  | 27  | 
|                                      |  |      | 954 |  |      |  | 707 |      |  |  | 482  |  |  |      | 787 |  |  |  | 267 | 



|(a) | Our minimum commitments for North American natural gas purchases, which include both floating rate and fixed rate contracts, are calculated using the prevailing NYMEX forward prices for U.S. facilities and AECO forward
prices for Canadian facilities at December 31, 2015.
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(b) | Commitments include our proportionate share of commitments of joint ventures. Profertil has long-term gas contracts denominated in U.S. dollars and expiring in 2017, which account for approximately 74 percent of
Profertils gas requirements. YPF S.A., our joint venture partner in Profertil, supplies approximately 35 percent of the gas under these contracts.
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(c) | We have a power co-generation agreement for our Carseland facility that expires on December 31, 2026. The maximum commitment under this agreement is to purchase 60 megawatt-hours of power per hour through 2026. 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.
|--- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(d) | Our phosphate rock supply agreement extends to 2020. Our minimum commitment is to purchase 798,000 tonnes until 2018, with subsequent volumes to be determined in 2016. The purchase price is based on a formula that
tracks finished product pricing and key published phosphate input costs. We entered into a freight contract to import phosphate rock extending to 2018, with a total commitment of $94-million at December 31, 2015.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

|(e) | Future capital expenditures for the Texas nitrogen expansion project not included above are estimated at $300-million.
|--- | ----------------------------------------------------------------------------------------------------------------------



|23. |  | CONTINGENT LIABILITIES
|--- |  | ----------------------

From time to time, we become involved in legal or administrative proceedings related to our
current and acquired businesses. Such proceedings expose us to possible losses, and we expect our involvement in such matters to continue in the normal conduct of our business. We will represent our interests vigorously in all of the proceedings in
which we are involved. Legal and administrative proceedings involving possible losses are inherently complex, and we apply significant judgment in estimating probable outcomes. As a result, potential exists for adjustments to liabilities and
material variance between actual costs and estimates.

Information on the amounts accrued for litigation, environmental remediation and asset retirement are
disclosed in note 19. Our assessment of specific matters at the date of issuance of these financial statements is set out below.

Environmental contingencies

We are responsible
for environmental remediation of certain facilities and sites. Work at these sites is in various stages of environmental management: we are assessing and investigating some sites and remediating or monitoring others. We have established a provision
for our estimated liabilities (see note 19). However, new information, including changes in regulations or results of investigations, could lead to reassessment of our exposure related to these matters. In addition, we may revise our estimates of
our future obligations because they are dependent on a number of uncertain factors including the method and extent of the remediation, as well as cost-sharing arrangements with other parties involved.

For the matters described below, at the date of issuance of these financial statements, we determined that we could not make a reliable estimate of the amount and timing
of any financial effect in excess of the amounts accrued.



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 123



---





Idaho phosphate mining and processing sites

We are subject to investigations by U.S. federal and state agencies of existing and former phosphate mining and processing sites in Idaho. Nu-West Industries, Inc.
(Nu-West), a wholly owned subsidiary of Agrium, has been notified of potential violations of federal and state statutes. Nu-West is working co-operatively with federal and state agencies and, depending on the site, is in the
investigation or risk assessment stage or has, for some sites, begun preliminary work under agreements with the agencies. Completion of investigations, risk assessments or preliminary work will enable Nu-West and the agencies to determine what, if
any, remediation work will be required. In 2015, Nu-West received a Notice of Intent advising that trustees for U.S. Federal and State agencies will conduct a damage assessment at the Idaho phosphate mining and processing sites. We expect the
trustees to begin the assessment in 2016.

Manitoba mining properties

In 1996, Agrium acquired Viridian Inc. (Viridian), which is now a wholly owned Canadian subsidiary of Agrium. Viridian has retained certain liabilities
associated with the Fox Mine Site  a closed mineral processing site near Lynn Lake, Manitoba. Viridian is currently treating water draining from the site to meet provincial downstream water quality standards. Viridian has substantially
completed the investigation phase of remediation and is currently in discussions with the Province of Manitoba regarding remedial alternatives selection. Concurrence and approval from the Province of a remedial design are expected within the next 36
months. For this matter, we have not disclosed information about the amount accrued for site remediation because disclosure of such information would seriously prejudice our position in discussions with the Province.



|24. |  | ACCOUNTING POLICIES, JUDGMENTS, ASSUMPTIONS AND ESTIMATES
|--- |  | ---------------------------------------------------------

We describe below significant accounting policies,
without repeating or restating the actual text of the accounting standards, where disclosure would assist users in understanding how we reflect transactions and other events and conditions in our financial statements. In addition, IFRS requires us
to describe (a) information about the assumptions and estimates we make in applying our accounting policies and (b) judgments we have made in the process of applying our accounting policies.

a) Accounting policies and underlying assumptions and estimates

In preparing financial statements, we make assumptions and estimates based on our historical experience, current trends and all available information we believe is
relevant at the time we prepare the financial statements. However, we cannot determine future events and their effects with certainty. Accordingly, as confirming events occur, actual results could ultimately differ from our assumptions and
estimates. Such differences could be material. We have provided analysis of sensitivity to assumptions elsewhere in the notes to these financial statements in instances where it is relevant to understanding managements assumptions about the
future. Sensitivity analysis presents the impact of reasonably possible hypothetical changes to one assumption at December 31, 2015, while holding other assumptions constant. In practice, it is unlikely that the hypothetical change would occur
in isolation as variables may have interdependencies. Accordingly, such analysis provides only an approximation of the sensitivity to the individual assumptions shown and may not be representative of the full impact on our financial position and
results of operations.



|                             |  |                                                                                                                                                                                                                                                                                                    |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |  | 
|---------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | 
|Financial statement area     |  | Accounting policy                                                                                                                                                                                                                                                                                  |  | Assumptions and estimation uncertainty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
|Revenue recognition (IAS 18) |  | We recognize revenue when we meet the requirements of IAS 18. For the sale of goods, risks and rewards of ownership pass to our customers
based on the contractual terms of the arrangement. In most cases, the terms of the arrangement are such that risks and rewards transfer when product is: |  | We make various estimates to recognize revenue, including our ability to collect consideration for a sale, the impact of estimated customer sales returns and some customer incentive programs, whether we are acting as an
agent or principal in a sale, and whether a service is complete. We make estimates based on historical and forecasted data, contractual terms and current conditions. Because of the nature of our sales of goods and services, any single estimate would
have only a negligible impact on revenue recognition.
|                             |  | ●                                                                                                                                                                                                                                                                                                  |  | picked up by the customer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 
|                             |  | ●                                                                                                                                                                                                                                                                                                  |  | delivered to the destination specified by our customer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 
|                             |  | ●                                                                                                                                                                                                                                                                                                  |  | delivered to the vessel on which the product will be shipped, or                                                                                                                                                                                                                                                                                                                                                                                                                                                                            | 
|                             |  | ●                                                                                                                                                                                                                                                                                                  |  | delivered to the destination port.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | 
|                             |  | We recognize revenue for services when the service is complete. We deduct provisions for returns, trade discounts and rebates from revenue. We recognize interest income using the effective interest method.                                                                                      | 



|    |  |                          
|--- |  | -------------------------
|124 |  | AGRIUM ANNUAL REPORT
2015



---

|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |              | 
|-------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------ | 
|Financial statement area                                       |  | Accounting policy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | Assumptions and estimation uncertainty                                                                                                                                                                                                                                                                                                                                                                                                                                           
|Property, plant and equipment (IAS 16, IAS 23, IAS 36,
IAS 37) |  | We present property, plant and equipment at cost net of accumulated depreciation and accumulated impairment losses. We capitalize
components requiring replacement at regular intervals, major inspections and overhauls, spare parts used in connection with specific equipment and standby equipment. We capitalize such costs if they meet the asset recognition criteria of IAS 16 and
the asset has an estimated useful life of greater than one year. We immediately write off remaining carrying value of components replaced. We depreciate each component over the lesser of its estimated useful life and the remaining period until the
next replacement or major inspection or overhaul. If the construction or preparation for use of property, plant or equipment extends over more than 12 months, we capitalize borrowing costs up to the date of completion as part of the cost of
acquisition or construction.  We move an asset from the construction phase to the production
phase and begin depreciation when the asset is available for use in the manner intended by management. 
We changed the method of depreciation from the straight-line basis to the units of production basis for our potash facility mining and milling assets beginning
January 1, 2015, and our nitrogen and phosphate mining and plant assets beginning October 1, 2015. |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | We depreciate property, plant and equipment directly related to our nitrogen, phosphate and potash operations using the units of
production method. We depreciate the rest of our property, plant and equipment using the straight-line method using the following estimated useful lives, which we reassess annually:                                                                                                                                                           
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Buildings and improvements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 3  60 years
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Machinery and equipment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 1  60 years
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 1  45 years
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | We make assumptions about the use of an asset based on the level of
capital expenditures compared to construction cost estimates; completion of a reasonable period of testing of the asset; ability to produce product in saleable form within specifications; and ability to sustain ongoing production.
 We depreciate potash related assets over the shorter of estimates of reserves and service lives and
nitrogen and phosphate plant assets based on their productive capacity. The change in method of depreciation reflects anticipated changes to our production schedule due to facility expansions, volatility in market conditions, and the frequency and
duration of plant turnarounds. The change in estimate is accounted for prospectively. The current and expected reduction in depreciation expense is 2015  $30-million and 2016  $7-million.
|Intangible assets other than goodwill
(IAS 38)                 |  | We initially measure finite-lived intangible assets at cost and amortize them over their estimated
useful lives, except for intangible assets with indefinite useful lives. We capitalize costs for internally generated intangible assets when costs meet criteria for feasibility. We expense research and development expenditures that do not meet the
capitalization criteria.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | We amortize finite-lived intangible assets on a straight-line basis using the following estimated
useful lives, which we reassess annually:                                                                                                                                                                                                                                                                                                                                      
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Trade names                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 5  10 years
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Customer relationships                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 7  10 years
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Technology                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 3  7 years 
|                                                               |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             | Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   | 5  20 years
|Rebates (IAS 2)                                                |  | We account for rebates and prepay discounts as a reduction of the prices of the suppliers products. Rebates
based on the amount of materials purchased reduce cost of product as we sell inventory. We offset rebates based on sales volume to cost of product sold if we have earned the rebate based on sales volume of products.
 We accrue rebates that are probable and that we can reasonably estimate. We accrue rebates that are
not probable or estimable when we achieve certain milestones. We accrue rebates not covered by binding agreements or published vendor programs when we obtain conclusive documentation of right of receipt.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | We record accruals for some rebates by estimating the point at which we will have completed our
performance under an agreement. Due to the complexity and diversity of individual vendor agreements, we analyze and review historical trends to apply rates negotiated with our vendors to estimated and actual purchase volumes to determine accruals.
Estimated amounts accrued throughout the year could be impacted if actual purchase volumes differ from projected volumes.



|                          |  |    
|------------------------- |  | ---
|AGRIUM ANNUAL REPORT 2015 |  | 125



---

|                                  |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Financial statement area          |  | Accounting policy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |  | Assumptions and estimation uncertainty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|Inventories (IAS 2)               |  | We measure inventories at the lower of cost on a weighted average basis and net realizable value.
 Wholesale inventories consist primarily of crop nutrients, operating supplies and raw materials,
including both direct and indirect production and purchase costs, depreciation and amortization of assets employed directly in production, and freight to transport product to storage facilities.
 Retail inventories consist primarily of crop nutrients, crop protection products, seed and
merchandise and include the cost of delivery to move the product to storage facilities.                                                                                                                                                                |  | Calculating the net realizable value of inventories requires estimates and assumptions about a combination of interrelated factors affecting
forecasted selling prices, including demand and supply variables. Demand variables include grain and oilseed prices, stock-to-use ratios and changes in inventories in distribution channels. Supply variables include forecasted prices of raw materials
such as natural gas, operating rates and crop nutrient inventory levels.                                                                                                                                                                                                                                                          
|Provisions (IAS 37)               |  | Our most significant provisions relate to litigation, asset retirement and environmental remediation.
 We measure provisions (liabilities of uncertain timing or amount) at the best estimate of the
expenditure required to settle the liability. We take risks and uncertainties into account when measuring a provision. We discount a provision to its present value using a pre-tax, risk-free discount rate. We do not recognize contingent liabilities
(obligations that we cannot measure with sufficient reliability or obligations for which it is not probable that an outflow of resources will be required to settle the obligation). We have described policy choices applying to provisions and
contingent liabilities in notes 19 and 23. |  | Estimating the ultimate settlement of provisions requires us to make complex and interrelated assumptions based
on experience with similar matters, past history, precedents, evidence and facts specific to each matter. 
As at January 1, 2015, based on a review of the expected timing of future expenditures, we revised our estimate for decommissioning costs of our nitrogen assets. The
revision in estimate decreased our asset retirement obligation provision and property, plant and equipment by $55-million. The reduction in depreciation and accretion expense for the year ended 2015 is $4-million. The expected reduction in
depreciation and accretion expense is $4-million in each of the years 2016 through 2018.
|Share-based compensation (IFRS 2) |  | We recognize share-based payment transactions when we obtain services from an employee. With the exception of
stock options, we expect to settle our share-based compensation plans in cash. These cash-settled awards are measured at the fair value of the liability and we remeasure liabilities at the end of each reporting period and at the date of settlement.
We have described our policy choices applying to our plans in note 9.                                                                                                                                                                                                                                                                                                              |  | In valuing share-based payment transactions and liabilities, we make assumptions about the future volatility of
our share price, expected dividend yield, future employee turnover rates, future employee stock option exercise behavior and corporate performance. Such estimates and assumptions are inherently uncertain.                                                                                                                                                                                                                                                                                                                                                                                                             
|Leases (IAS 17, IFRIC 4)          |  | An arrangement may be or contain a lease according to the substance of the arrangement. This is the case if the arrangement is dependent on the use of an asset or conveys a right to use an asset,
even if not explicitly stated.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Leasing arrangements primarily relate to railcars and other rolling stock, which we have classified as operating
leases as we do not have substantially all the risks and rewards of ownership of the leased assets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     



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|Financial statement area                                               |  | Accounting policy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |  | Assumptions and estimation uncertainty                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|Income taxes (IAS 12)                                                  |  | In determining our provision for income taxes, we use an annual effective income tax rate based on annual income, permanent differences between book
and tax income, and substantially enacted income tax rates. We adjust our annual effective income tax rate as additional information on outcomes or events becomes available. 
We recognize a tax benefit or liability for an uncertain tax position when our best estimate is that the position is more likely than not to be sustained on
examination, based on a qualitative assessment of all relevant factors. |  | We make assumptions to estimate the exposures associated with our various filing positions. We recognize a provision when it becomes probable that we
will incur additional tax liabilities for such exposures. Changes in tax law, the level and geographic mix of earnings and the results of tax audits also affect our effective income tax rate.
 Determining tax provisions requires that we make assumptions about the ultimate outcome of a filing
position, which can change over time depending on facts and circumstances.
|Employee future benefits (IAS 19)                                      |  | We establish a liability when an employee has provided service in return for benefits that we expect to pay in the future. For defined benefit pension plans, we recognize a defined benefit
obligation, based on actuarial assumptions, net of the fair value of plan assets.                                                                                                                                                                                                                                                                                           |  | We use actuarial assumptions to determine the obligations for employee future benefits at each reporting period. These assumptions include the discount rate, expected long-term rate of return on
assets, rate of increase in compensation levels, mortality rates, and health care cost trend rates. We have provided detailed information on the assumptions used in note 8.                                                                                                                                                      
|Impairment of goodwill and indefinite-lived intangible assets (IAS 36) |  | In completing our goodwill impairment testing, we selected FVLCD methodology. For some impairment calculations, we may use an income approach with a discounted cash flow technique. For other
calculations, we may use a market approach based on prices and other information generated by market transactions. We deduct the incremental cost of disposing of the asset in determining FVLCD. We do not calculate value in use if there is no
impairment under FVLCD.                                                                                                 |  | Refer to note 14 for significant assumptions and estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|Business combinations (IFRS 3)                                         |  | We recognize the consideration transferred, assets acquired and liabilities assumed at their acquisition date fair values, recognizing any goodwill acquired or a gain on a purchase, and any
non-controlling interest in the acquired business. 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.                                                                                                                    |  | We make assumptions to identify tangible and intangible assets acquired, liabilities assumed, and their fair values. To determine fair values, we use quoted market prices or widely accepted
valuation techniques. Assumptions include economic conditions, interest rates, industry economic factors, and business strategies and risks specific to the acquired asset or liability.                                                                                                                                               
|Financial instruments (IFRS 9 (2014))                                  |  | We record all derivatives not designated as qualifying hedges and marketable securities at fair value through profit and loss. We record derivatives designated as hedges at fair value through
other comprehensive income. We record other assets and liabilities at amortized cost.                                                                                                                                                                                                                                                                                    |  | Refer to note 4 for significant assumptions and estimates.                                                                                                                                                                                                                                                                                                                                                                                                                                                                           



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|b) | Accounting policy choices requiring judgments that have the most significant effect on the amounts recognized in the financial statements
|-- | -----------------------------------------------------------------------------------------------------------------------------------------

We consider judgments made in recording impairment of property, plant and equipment, goodwill and indefinite-lived intangible assets, foreign currency and provisions to
be critical accounting estimates that require our most difficult, subjective and complex assumptions.



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|Financial statement area                   |  | Accounting policy judgment                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |  | Judgment factors                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|Long-lived assets (IAS 16, IAS 36, IAS 38) |  | For property, plant and equipment and finite-lived intangible assets, we review for indicators of impairment at each reporting period. We perform this
review at the CGU level. A CGU may be a single asset or a group of assets if we cannot identify independent cash flows from an asset. If indicators of impairment of a CGU exist, we will calculate its recoverable amount.
 We perform an impairment test of goodwill and indefinite-lived intangibles in the fourth quarter
annually or earlier if indicators of impairment exist. We allocate goodwill to CGU groups based on the level at which goodwill is monitored internally by management. This level does not exceed the level of our operating segments before
aggregation. |  | We determine CGUs based on geographic regions, economic and commercial influences, product lines, extent of shared infrastructure and interdependence
of cash flows. We grouped (a) Wholesale assets by product lines because of differing production processes and inputs for each nutrient and (b) Retail assets by geographic regions based on customers, products and distribution methods.
 We have allocated substantially all of the carrying amount of goodwill to two groups of CGUs within
the Retail business unit: Retail  North America and Retail  Australia.
|Foreign currency (IAS 21)                  |  | The functional currency of our operations is generally the local currency. Our presentation currency for the consolidated financial statements is the U.S. dollar. We also make judgments about
whether an entity may have multiple branches with different functional currencies.                                                                                                                                                                                                                                                                                                                                                                                                                                                            |  | In determining the functional currency of our operations, we primarily considered the currency that determines the pricing of transactions rather than focusing on the currency in which
transactions are denominated.                                                                                                                                                                                                                                                                                                                                                       
|Provisions (IAS 37)                        |  | We distinguish between provisions and contingent liabilities based on the probability of an outflow of resources embodying economic benefits and the availability of information to make a
sufficiently reliable estimate. We make judgments as to whether an obligation exists and whether an outflow of resources embodying economic benefits for a liability of uncertain timing or amount is probable, not probable, or remote. These judgments
determine whether we recognize or disclose an amount in the financial statements.                                                                                                                                                                                                         |  | Our provisions are measured based on our best estimate of the amount and timing of expected future cash outflows to settle the obligation. We consider all available information relevant to each
specific matter. In 2015, we continued to review our litigation, asset retirement and environmental remediation provisions which resulted in a revision to our estimate of when we expect to incur decommissioning costs for our nitrogen
assets.                                                                                                                          



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c) Recent accounting pronouncements

The International Accounting Standards Board has issued the following accounting pronouncements, which we have either adopted or will adopt in the future, and which could
have a material impact.



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|New oramended |  | Standard/interpretation |  | Description                                                                                                                                                                                                                                                                                             |  | Agriums date andmethod of adoption                                               |  | Impact                                                                                                                                                         
|New           |  | IFRS 15                 |  | Revenue from Contracts with Customers establishes a new model for revenue earned from a contract with a customer. The standard provides specific guidance on identifying separate performance obligations in the contract and
allocating the transaction price to the separate performance obligations. |  | Agrium expects to adopt for annual periods beginning on or after January 1, 2018. |  | We have established preliminary terms of reference as an initial step in evaluating the impact. However, we are not able, at this time, to estimate the impact.
|New           |  | IFRS 16                 |  | Leases applies a single model for all recognized leases, which would require recognition of lease-related assets and liabilities and the related interest and depreciation expense in the
financial statements.                                                                                         |  | Agrium expects to adopt for annual periods beginning on or after January 1, 2019. |  | We expect that adoption will have a material impact on assets and liabilities. However, we are not able, at this time, to estimate the impact.                 
|Amended       |  | Various                 |  |    IAS 1 Disclosure
Initiative 
   IFRS 9 (2014) Financial Instruments
    IFRS
11 Accounting for Acquisitions of Interests in Joint Operations 
   IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation
and Amortization 
   Annual Improvements to IFRS (2012-2014)             |  | Amendments adopted January 1, 2015.                                               |  | No material impact.                                                                                                                                            



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