EXHIBIT 99.3
 AGRIUM INC.
 2010
 AUDITED ANNUAL FINANCIAL
STATEMENTS AND NOTES




---



##### 



Financial Statements and Notes
 
 Financial Reporting Responsibilities
   Managements Report on Internal Control over Financial Reporting
     -s- Michael M. Wilson
    
    -s- Bruce G. WatermanMichael M. Wilson
    
    Bruce G. WatermanPresident & Chief Executive Officer 
Calgary, Canada
    
    Senior Vice President, Finance & Chief Financial OfficerFebruary 24, 2011
 86
    Agrium
    2010 ANNUAL REPORT




---



##### 



Auditors
Reports
 To the Shareholders of Agrium Inc.
  Managements Responsibility for the Consolidated Financial Statements
  Auditors
Responsibility
    Opinion
   
 (KPMG LLP)Chartered Accountants
Calgary, Canada
February 24, 2011
 
 2010 ANNUAL REPORT
    Agrium
    87




---



##### 



To the Shareholders of Agrium Inc.
  Managements responsibility
  Auditors
responsibility
  
  Opinion
    
 (KPMG LLP)Chartered Accountants
Calgary, Canada
February 24, 2011
 
 88
    Agrium
    2010 ANNUAL REPORT




---



##### 



Consolidated Statements of Operations
 
 Years ended December 31,(millions of U.S. dollars, except per share amounts)
    
    2010
    
    
    2009
    
    
    2008Sales
    
    
    10,743
    
    
    
    9,328
    
    
    
    10,268Direct freight
    
    
    223
    
    
    
    199
    
    
    
    237Net sales
    
    
    10,520
    
    
    
    9,129
    
    
    
    10,031Cost of product sold
    
    
    7,869
    
    
    
    7,186
    
    
    
    6,808Gross profit
    
    
    2,651
    
    
    
    1,943
    
    
    
    3,223ExpensesSelling
    
    
    1,038
    
    
    
    918
    
    
    
    815General and administrative
    
    
    236
    
    
    
    202
    
    
    
    192Depreciation and amortization
    
    
    129
    
    
    
    124
    
    
    
    110Potash profit and capital tax
    
    
    27
    
    
    
    4
    
    
    
    162Earnings from equity investees (note 14)
    
    
    (25
    )
    
    
    (27
    )
    
    
    (4
    )Other expenses (income) (note 5)
    
    
    143
    
    
    
    142
    
    
    
    (38
    )Earnings before interest, income taxes
and non-controlling interests
    
    
    1,103
    
    
    
    580
    
    
    
    1,986Interest on long-term debt
    
    
    88
    
    
    
    91
    
    
    
    82Other interest
    
    
    19
    
    
    
    19
    
    
    
    23Earnings before income taxes and
non-controlling interests
    
    
    996
    
    
    
    470
    
    
    
    1,881Income taxes (note 6)
    
    
    265
    
    
    
    105
    
    
    
    589Non-controlling interests
    
    
    
    
    
    
    (1
    )
    
    
    (30
    )Net earnings from continuing operations
    
    
    731
    
    
    
    366
    
    
    
    1,322Net loss from discontinued operations(note 4)
    
    
    (17
    )
    
    
    
    
    
    
    Net earnings
    
    
    714
    
    
    
    366
    
    
    
    1,322Earnings per share from(note 7)Basic earnings per share from
continuing operations
    
    
    4.64
    
    
    
    2.33
    
    
    
    8.39Basic loss per share from
discontinued operations
    
    
    (0.11
    )
    
    
    
    
    
    
    Basic earnings per share
    
    
    4.53
    
    
    
    2.33
    
    
    
    8.39Diluted earnings per share from
continuing operations
    
    
    4.63
    
    
    
    2.33
    
    
    
    8.34Diluted loss per share from
discontinued operations
    
    
    (0.11
    )
    
    
    
    
    
    
    Diluted earnings per share
    
    
    4.52
    
    
    
    2.33
    
    
    
    8.34
  2010 ANNUAL REPORT
    Agrium
    89




---



##### 



Consolidated Statements of Cash Flows
 
 Years ended December 31,(millions of U.S. dollars)
    
    2010
    
    
    2009
    
    
    2008OperatingNet earnings from continuing operations
    
    
    731
    
    
    
    366
    
    
    
    1,322Items not affecting cashDepreciation and amortization
    
    
    334
    
    
    
    242
    
    
    
    218Earnings from equity investees (note 14)
    
    
    (25
    )
    
    
    (27
    )
    
    
    (4
    )Stock-based compensation
    
    
    110
    
    
    
    73
    
    
    
    (25
    )Unrealized loss (gain) on derivative
financial instruments
    
    
    42
    
    
    
    (39
    )
    
    
    77Acquisition costs (note 3)
    
    
    45
    
    
    
    
    
    
    
    Gain on disposal of
marketable securities (note 3)
    
    
    (52
    )
    
    
    
    
    
    
    Unrealized foreign exchange
(gain) loss
    
    
    (12
    )
    
    
    62
    
    
    
    (6
    )Future income taxes (note 6)
    
    
    14
    
    
    
    (309
    )
    
    
    363Non-controlling interests
    
    
    
    
    
    
    (1
    )
    
    
    (30
    )Other
    
    
    23
    
    
    
    82
    
    
    
    240Dividends from equity investees
    
    
    14
    
    
    
    
    
    
    
    Net changes in non-cash
working capital (note 8)
    
    
    (649
    )
    
    
    950
    
    
    
    (1,097
    )Cash provided by operating activities
    
    
    575
    
    
    
    1,399
    
    
    
    1,058InvestingAcquisitions, net of cash acquired (note 3)
    
    
    (1,246
    )
    
    
    (15
    )
    
    
    (2,740
    )Capital expenditures
    
    
    (441
    )
    
    
    (313
    )
    
    
    (506
    )Proceeds from disposal of investments
    
    
    25
    
    
    
    
    
    
    
    Purchase of marketable securities
    
    
    
    
    
    
    (65
    )
    
    
    Proceeds from disposal of
marketable securities
    
    
    117
    
    
    
    
    
    
    
    Other
    
    
    (1
    )
    
    
    (120
    )
    
    
    (129
    )Cash used in investing activities
    
    
    (1,546
    )
    
    
    (513
    )
    
    
    (3,375
    )FinancingBank indebtedness
    
    
    (8
    )
    
    
    (381
    )
    
    
    261Long-term debt issued
    
    
    565
    
    
    
    78
    
    
    
    1,620Transaction costs on long-term debt
    
    
    (13
    )
    
    
    (1
    )
    
    
    (12
    )Repayment of long-term debt
    
    
    (17
    )
    
    
    (1
    )
    
    
    (795
    )Contributions from
non-controlling interests
    
    
    
    
    
    
    
    
    
    
    171Dividends paid
    
    
    (17
    )
    
    
    (17
    )
    
    
    (18
    )Shares issued, net of issuance costs
    
    
    8
    
    
    
    7
    
    
    
    4Shares repurchased
    
    
    
    
    
    
    
    
    
    
    (35
    )Cash provided by (used in)
financing activities
    
    
    518
    
    
    
    (315
    )
    
    
    1,196Effect of exchange rate changes
on cash and cash equivalents
    
    
    15
    
    
    
    5
    
    
    
    (14
    )(Decrease) increase in cash and cash
equivalents from continuing operations
    
    
    (438
    )
    
    
    576
    
    
    
    (1,135
    )Cash and cash equivalents provided by
discontinued operations (note 4)
    
    
    45
    
    
    
    
    
    
    
    Cash and cash equivalents 
beginning of year
    
    
    933
    
    
    
    374
    
    
    
    1,509Deconsolidation of Egypt subsidiary
    
    
    
    
    
    
    (17
    )
    
    
    Cash and cash equivalents  end of year(note 8)
    
    
    540
    
    
    
    933
    
    
    
    374
  90
    Agrium
    2010 ANNUAL REPORT




---



##### 



Consolidated Balance Sheets
 
 As at December 31,(millions of U.S. dollars)
    
    2010
    
    
    2009ASSETSCurrent assetsCash and cash equivalents (note 8)
    
    
    540
    
    
    
    933Accounts receivable (note 9)
    
    
    1,781
    
    
    
    1,324Inventories (note 10)
    
    
    2,502
    
    
    
    2,137Prepaid expenses and deposits
    
    
    848
    
    
    
    612Marketable securities
    
    
    3
    
    
    
    114Assets of discontinued operations (note 4)
    
    
    1,320
    
    
    
    6,994
    
    
    
    5,120Property, plant and equipment(note 11)
    
    
    2,099
    
    
    
    1,782Intangibles(note 12)
    
    
    619
    
    
    
    617Goodwill(note 13)
    
    
    2,463
    
    
    
    1,801Investment in equity investees(note 14)
    
    
    389
    
    
    
    370Other assets(note 15)
    
    
    47
    
    
    
    95Future income tax assets(note 6)
    
    
    14
    
    
    
    Assets of discontinued operations(note 4)
    
    
    92
    
    
    
    12,717
    
    
    
    9,785LIABILITIES AND SHAREHOLDERS EQUITYCurrent liabilitiesBank indebtedness (note 16)
    
    
    297
    
    
    
    106Accounts payable (note 17)
    
    
    2,843
    
    
    
    2,475Current portion of long-term debt (note 16)
    
    
    125
    
    
    
    Liabilities of discontinued operations (note 4)
    
    
    1,020
    
    
    
    4,285
    
    
    
    2,581Long-term debt(note 16)
    
    
    2,118
    
    
    
    1,699Other liabilities(note 18)
    
    
    408
    
    
    
    381Future income tax liabilities(note 6)
    
    
    549
    
    
    
    521Liabilities of discontinued operations(note 4)
    
    
    2
    
    
    
    Non-controlling interests
    
    
    8
    
    
    
    117,370
    
    
    
    5,193Commitments, guarantees
and contingencies(notes 24, 25 and 26)Shareholders equityShare capital
    
    
    1,976
    
    
    
    1,969Contributed surplus
    
    
    10
    
    
    
    81,986
    
    
    
    1,977Retained earnings
    
    
    3,359
    
    
    
    2,662Accumulated other comprehensive
income (note 22)
    
    
    2
    
    
    
    (47
    )3,361
    
    
    
    2,6155,347
    
    
    
    4,59212,717
    
    
    
    9,785
   -s- Michael M. WilsonMichael M. Wilson
Director
    
    
    
    -s- Victor J. ZaleschukVictor J. Zaleschuk
Director
 2010 ANNUAL REPORT
    Agrium
    91




---



##### 



Consolidated Statements of Comprehensive Income
and Shareholders Equity
 
 AccumulatedMillions of
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    other
    
    
    Total(millions of U.S. dollars,
    
    common
    
    
    Share
    
    
    Contributed
    
    
    Retained
    
    
    comprehensive
    
    
    shareholdersexcept share data)
    
    shares(a)
    
    
    capital
    
    
    surplus
    
    
    earnings
    
    
    income
    
    
    equityDecember 31, 2007
    
    
    158
    
    
    
    1,972
    
    
    
    8
    
    
    
    1,024
    
    
    
    84
    
    
    
    3,088Transition adjustment (b)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    4158
    
    
    
    1,972
    
    
    
    8
    
    
    
    1,028
    
    
    
    84
    
    
    
    3,092Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,322
    
    
    
    
    
    
    
    1,322Cash flow hedges (c)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (14
    )
    
    
    (14
    )Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (242
    )
    
    
    (242
    )Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    1,066Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17
    )
    
    
    
    
    
    
    (17
    )Shares repurchased
    
    
    (1
    )
    
    
    (15
    )
    
    
    
    
    
    
    (20
    )
    
    
    
    
    
    
    (35
    )Stock options exercised
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    4December 31, 2008
    
    
    157
    
    
    
    1,961
    
    
    
    8
    
    
    
    2,313
    
    
    
    (172
    )
    
    
    4,110Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    366
    
    
    
    
    
    
    
    366Cash flow hedges (d)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (4
    )
    
    
    (4
    )Available for sale financial instruments  (e)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    29
    
    
    
    29Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    100
    
    
    
    100Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    491Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17
    )
    
    
    
    
    
    
    (17
    )Stock options exercised
    
    
    
    
    
    
    8
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    8December 31, 2009
    
    
    157
    
    
    
    1,969
    
    
    
    8
    
    
    
    2,662
    
    
    
    (47
    )
    
    
    4,592Net earnings
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    714
    
    
    
    
    
    
    
    714Cash flow hedges (f)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (2
    )
    
    
    (2
    )Available for sale financial instruments (g)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (29
    )
    
    
    (29
    )Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    80
    
    
    
    80Comprehensive income
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    763Dividends
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (17
    )
    
    
    
    
    
    
    (17
    )Stock options exercised
    
    
    1
    
    
    
    7
    
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    9December 31, 2010
    
    
    158
    
    
    
    1,976
    
    
    
    10
    
    
    
    3,359
    
    
    
    2
    
    
    
    5,347
 
 (a)
    
    The Companys authorized share capital consists of unlimited common shares.(b)
    
    Adjustment at January 1, 2008 for adoption of accounting standards for inventory. Net of tax of $1-million.(c)
    
    Net of tax of $2-million and non-controlling interest of $7-million.(d)
    
    Net of tax of $2-million.(e)
    
    Net of tax of $19-million.(f)
    
    Net of tax of $1-million.(g)
    
    Net of tax of $19-million.  92
    Agrium
    2010 ANNUAL REPORT




---



##### 



Notes to the Consolidated Financial Statements
 
  1. Description of Business
  ¤
    
    Retailoperates in North and South America and Australia and sells crop nutrients, crop
protection products, seed and services directly to growers;¤
    
    Wholesaleoperates in North and South America and Europe producing, marketing and distributing
three primary groups of nutrients: nitrogen, potash and phosphate for agricultural and industrial
customers around the world; and,¤
    
    Advanced Technologiesproduces and markets controlled-release crop nutrients and
micronutrients in the broad-based agriculture, specialty agriculture, professional turf,
horticulture, and consumer lawn and garden markets worldwide.
 2. Significant Accounting Policies
 Principles of consolidation and preparation of financial statements
    Foreign currency translation
  2010 ANNUAL REPORT
    Agrium
    93




---



##### 



Financial instruments
  Financial instrument classification
    
    Subsequent measurement of gains or lossesAssets or liabilities held for trading
    
    Fair value; unrealized gains or losses recognized in net earningsAvailable for sale financial assets and liabilities
    
    Fair value; unrealized gains and losses recognized in OCI;
recognized in net earnings in the same period that the hedged
item impacts net earnings, on sale of the asset or when the
asset is written down as impairedHeld to maturity investmentsLoans and receivables
    
    Amortized cost using the effective interest rate method;
recognized in net earnings, if asset/liability is derecognized
or asset is impairedOther financial liabilities
   Fair values
  Revenue recognition
   Rebates
   Income taxes
  94
    Agrium
    2010 ANNUAL REPORT




---



##### 



Cash and cash equivalents
  Accounts receivable and allowance for doubtful accounts
   Inventories
 
  Property, plant and equipment
  Intangibles
  Impairment of long-lived assets
  Goodwill
  Environmental remediation
  2010 ANNUAL REPORT
    Agrium
    95




---



##### 



Asset retirement obligations
  Stock-based compensation
    Employee future benefits
   Significant accounting standard and policy changes
 International Financial Reporting Standards (IFRS)
  3. Business Acquisitions
 AWB Limited
  96
    Agrium
    2010 ANNUAL REPORT




---



##### 



Preliminary estimated fair values of assets acquired and liabilities assumedContinuing operationsWorking capital
    
    
    565Property, plant and equipment
    
    
    81Intangibles
    
    
    41Goodwill
    
    
    626Other assets
    
    
    67Debt and other liabilities
    
    
    (571
    )Assets of discontinued operations
    
    
    1,128Liabilities of discontinued operations
    
    
    (691
    )1,246Consideration and acquisition costsCash and debt
    
    
    1,209Transaction costs
    
    
    371,246
   CF Industries Holdings, Inc.
  4.
    
    Discontinued Operations
    2010 ANNUAL REPORT
    Agrium
    97




---



##### 



Condensed information of discontinued operations
    
    2010Operating informationNet sales (a)
    
    
    313Net loss from discontinued operations (net of income taxes of
$3-million)
    
    
    (17
    )Cash (used in) provided byOperating activities
    
    
    (252
    )Investing activities
    
    
    (1
    )Financing activities
    
    
    29845Balance sheet informationAccounts receivable (b)
    
    
    743Inventories (c)
    
    
    551Prepaid expenses and deposits
    
    
    14Other current assets
    
    
    12Current assets
    
    
    1,320Property, plant and equipment
    
    
    81Other assets
    
    
    2Future income tax assets
    
    
    9Long-term assets
    
    
    921,412Bank indebtedness (d)
    
    
    471Accounts payable (e)
    
    
    549Current liabilities
    
    
    1,020Future income tax liabilities
    
    
    2Long-term liabilities
    
    
    21,022
 
 (a)
    
    Includes revenue from related parties
(Pools) of $59-million.(b)
    
    Includes receivables from Pools of
$157-million.(c)
    
    Commodity inventories measured at fair value less costs to sell; primarily wheat
($355-million) and oilseeds ($122-million).(d)
    
    Demand facilities with a weighted average rate of approximately 3 percent, including
$143-million secured by Pool inventories.(e)
    
    Includes accounts payable to Pools of $91-million. Fair valueBalance sheet information  wheat, oilseeds and other commodity
    
    Notional
    
    
    
    
    
    
    assetsderivative financial instruments outstanding
    
    (thousands, tonnes)
    
    
    Maturities
    
    
    (liabilities)Forward physical sales
    
    
    1,890
    
    
    
    2011
    
    
    
    (46
    )Forward physical purchases
    
    
    1,674
    
    
    
    2011-2012
    
    
    
    41Commodity derivatives
    
    
    1,508
    
    
    
    2011-2012
    
    
    
    2823Accounts receivable
    
    
    
    
    
    
    
    
    
    
    159Accounts payable
    
    
    
    
    
    
    
    
    
    
    (136
    )23
 98
    Agrium
    2010 ANNUAL REPORT




---



##### 



Notional
    
    
    
    
    
    
    Fair valueBalance sheet information  foreign exchange
    
    (millions,
    
    
    
    
    
    
    assetsderivative financial instruments outstanding
    
    buy currency)
    
    
    Maturities
    
    
    (liabilities)USD/AUD forwards
    
    AUD 600
    
    
    2011
    
    
    
    23Other
    
    
    
    
    
    
    2011
    
    
    
    629Accounts receivable
    
    
    
    
    
    
    
    
    
    
    40Accounts payable
    
    
    
    
    
    
    
    
    
    
    (11
    )29
 5. Other Expenses (Income)
 2010
    
    
    2009
    
    
    2008Stock-based compensation
    
    
    110
    
    
    
    73
    
    
    
    (25
    )Realized loss (gain) on derivative
financial instruments
    
    
    39
    
    
    
    123
    
    
    
    (77
    )Unrealized loss (gain) on derivative
financial instruments
    
    
    42
    
    
    
    (39
    )
    
    
    77Acquisition costs
    
    
    45
    
    
    
    
    
    
    
    Gain on disposal of marketable securities
    
    
    (52
    )
    
    
    
    
    
    
    Environmental remediation and accretion
of asset retirement obligations
    
    
    14
    
    
    
    9
    
    
    
    15Interest income
    
    
    (50
    )
    
    
    (56
    )
    
    
    (57
    )Foreign exchange (gain) loss
    
    
    (40
    )
    
    
    17
    
    
    
    (119
    )Bad debt expense
    
    
    31
    
    
    
    33
    
    
    
    23Other
    
    
    4
    
    
    
    (18
    )
    
    
    125143
    
    
    
    142
    
    
    
    (38
    )
 6. Income Taxes
 Major factors that caused variations from the expected combinedCanadian federal and provincial statutory income tax rates
    
    2010
    
    
    2009
    
    
    2008Earnings before income taxes,
non-controlling interests and
discontinued operationsCanadian
    
    
    398
    
    
    
    262
    
    
    
    1,180Foreign
    
    
    598
    
    
    
    208
    
    
    
    701996
    
    
    
    470
    
    
    
    1,881Statutory rate (%)
    
    
    29
    
    
    
    30
    
    
    
    30Income taxes at statutory rates
    
    
    285
    
    
    
    140
    
    
    
    571Foreign exchange gains (losses) relating
to Canadian operations
    
    
    18
    
    
    
    26
    
    
    
    (36
    )Differences in foreign tax rates
    
    
    (37
    )
    
    
    (59
    )
    
    
    16Non-deductible stock-based
compensation expense
    
    
    25
    
    
    
    
    
    
    
    Recognition of previously
unrecognized tax asset
    
    
    (28
    )
    
    
    
    
    
    
    Change in valuation allowance
    
    
    (1
    )
    
    
    5
    
    
    
    26Other
    
    
    3
    
    
    
    (7
    )
    
    
    12Income taxes
    
    
    265
    
    
    
    105
    
    
    
    589CurrentCanadian
    
    
    74
    
    
    
    322
    
    
    
    42Foreign
    
    
    177
    
    
    
    92
    
    
    
    184251
    
    
    
    414
    
    
    
    226FutureCanadian
    
    
    67
    
    
    
    (230
    )
    
    
    291Foreign
    
    
    (53
    )
    
    
    (79
    )
    
    
    7214
    
    
    
    (309
    )
    
    
    363265
    
    
    
    105
    
    
    
    589
  2010 ANNUAL REPORT
    Agrium
    99




---



##### 



Significant components of future income tax liabilities and assets
    
    2010
    
    
    2009Future income tax liabilitiesAccumulated depreciation
and amortization
    
    
    397
    
    
    
    389Deferred income
    
    
    196
    
    
    
    144Other
    
    
    122
    
    
    
    160Total future income tax liabilities
    
    
    715
    
    
    
    693Future income tax assetsLoss carry-forwards expiring
through 2030
    
    
    92
    
    
    
    25Asset retirement obligations
and environmental remediation
    
    
    75
    
    
    
    80Employee future benefits
and incentives
    
    
    73
    
    
    
    64Receivables, inventories and
accrued liabilities
    
    
    105
    
    
    
    92Other
    
    
    19
    
    
    
    9Future income tax assets beforevaluation allowance
    
    
    364
    
    
    
    270Valuation allowance
    
    
    (71
    )
    
    
    (21
    )Total future income tax assets,
net of valuation allowance
    
    
    293
    
    
    
    249Net future income tax liabilities
    
    
    422
    
    
    
    444Current future income tax assets
    
    
    113
    
    
    
    77Non-current future income tax assets
    
    
    14
    
    
    
    Non-current future income tax liabilities
    
    
    549
    
    
    
    521Net future income tax liabilities
    
    
    422
    
    
    
    444
 7. Earnings Per Share
 2010
    
    
    2009
    
    
    2008NumeratorNet earnings from continuing operations
    
    
    731
    
    
    
    366
    
    
    
    1,322Net loss from discontinued operations
    
    
    (17
    )
    
    
    
    
    
    
    Net earnings
    
    
    714
    
    
    
    366
    
    
    
    1,322DenominatorWeighted-average number of shares
outstanding for basic earnings per share
    
    
    157
    
    
    
    157
    
    
    
    158Dilutive instruments  stock options (a)(b)
    
    
    1
    
    
    
    
    
    
    
    1Weighted-average number of shares
outstanding for diluted earnings per share
    
    
    158
    
    
    
    157
    
    
    
    159Basic earnings per share from
continuing operations
    
    
    4.64
    
    
    
    2.33
    
    
    
    8.39Basic loss per share from
discontinued operations
    
    
    (0.11
    )
    
    
    
    
    
    
    Basic earnings per share
    
    
    4.53
    
    
    
    2.33
    
    
    
    8.39Diluted earnings per share from continuing operations
    
    
    4.63
    
    
    
    2.33
    
    
    
    8.34Diluted loss per share from discontinued operations
    
    
    (0.11
    )
    
    
    
    
    
    
    Diluted earnings per share
    
    
    4.52
    
    
    
    2.33
    
    
    
    8.34
 (a)
    
    For diluted earnings per share, conversion or exercise is assumed only if the effect is
dilutive to basic earnings per share.(b)
    
    Using the treasury stock method, stock options with an average grant price less than or equal
to the average share price during the year are considered dilutive and potential common share
equivalents are considered outstanding. At December 31, 2010, dilutive stock options
outstanding was nil (December 31, 2009  one million, December 31, 2008  one million).
  100
    Agrium
    2010 ANNUAL REPORT




---



##### 



8. Additional Cash Flow Information
 Cash and cash equivalents
    
    2010
    
    
    2009Cash
    
    
    311
    
    
    
    870Short-term investments
    
    
    229
    
    
    
    63540
    
    
    
    933
 Net changes in non-cash working capital
    
    2010
    
    
    2009
    
    
    2008Accounts receivable
    
    
    (197
    )
    
    
    (1
    )
    
    
    434Inventories
    
    
    (39
    )
    
    
    911
    
    
    
    (911
    )Prepaid expenses and deposits
    
    
    (267
    )
    
    
    (109
    )
    
    
    (114
    )Marketable securities
    
    
    7
    
    
    
    
    
    
    
    Accounts payable
    
    
    (153
    )
    
    
    149
    
    
    
    (506
    )(649
    )
    
    
    950
    
    
    
    (1,097
    )Supplemental cash flow disclosureInterest paid
    
    
    105
    
    
    
    107
    
    
    
    92Income taxes paid
    
    
    508
    
    
    
    91
    
    
    
    293Dividends per share
    
    
    0.11
    
    
    
    0.11
    
    
    
    0.11
 9. Accounts Receivable
 2010
    
    
    2009TradeRetail
    
    
    1,086
    
    
    
    727Wholesale
    
    
    361
    
    
    
    338Advanced Technologies
    
    
    51
    
    
    
    27Income and other taxes
    
    
    72
    
    
    
    127Future income tax
    
    
    113
    
    
    
    77Rebates and other non-trade accounts
    
    
    147
    
    
    
    68Derivative financial instruments
    
    
    4
    
    
    
    6Allowance for doubtful accounts
    
    
    (53
    )
    
    
    (46
    )1,781
    
    
    
    1,324
 10. Inventories
 2010AdvancedRetail
    
    
    Wholesale
    
    
    Technologies
    
    
    TotalRaw materials
    
    
    25
    
    
    
    229
    
    
    
    13
    
    
    
    267Finished goods
    
    
    68
    
    
    
    147
    
    
    
    53
    
    
    
    268Product for resale
    
    
    1,728
    
    
    
    212
    
    
    
    27
    
    
    
    1,9671,821
    
    
    
    588
    
    
    
    93
    
    
    
    2,502
 2009AdvancedRetail
    
    
    Wholesale
    
    
    Technologies
    
    
    TotalRaw materials
    
    
    24
    
    
    
    193
    
    
    
    14
    
    
    
    231Finished goods
    
    
    89
    
    
    
    205
    
    
    
    44
    
    
    
    338Product for resale
    
    
    1,451
    
    
    
    96
    
    
    
    21
    
    
    
    1,5681,564
    
    
    
    494
    
    
    
    79
    
    
    
    2,137
    2010 ANNUAL REPORT
    Agrium
    101




---



##### 



11. Property, Plant and Equipment
 2010
    
    
    2009Estimatedusefullife
    
    
    
    
    
    
    Accumulated
    
    
    Net book
    
    
    
    
    
    
    Accumulated
    
    
    Net book(years)
    
    
    Cost
    
    
    depreciation
    
    
    value
    
    
    Cost
    
    
    depreciation
    
    
    valueLand
    
    
    
    
    
    
    84
    
    
    
    
    
    
    
    84
    
    
    
    73
    
    
    
    
    
    
    
    73Buildings and improvements
    
    
    2-25
    
    
    
    872
    
    
    
    390
    
    
    
    482
    
    
    
    687
    
    
    
    338
    
    
    
    349Machinery and equipment
    
    
    2-25
    
    
    
    3,003
    
    
    
    1,841
    
    
    
    1,162
    
    
    
    2,888
    
    
    
    1,833
    
    
    
    1,055Assets under construction
    
    
    
    
    
    
    335
    
    
    
    
    
    
    
    335
    
    
    
    274
    
    
    
    
    
    
    
    274Other
    
    
    2-25
    
    
    
    87
    
    
    
    51
    
    
    
    36
    
    
    
    78
    
    
    
    47
    
    
    
    314,381
    
    
    
    2,282
    
    
    
    2,099
    
    
    
    4,000
    
    
    
    2,218
    
    
    
    1,782
 12. Intangibles
 2010
    
    
    2009Estimatedusefullife
    
    
    
    
    
    
    Accumulated
    
    
    Net book
    
    
    
    
    
    
    Accumulated
    
    
    Net book(years)
    (a)
    
    Cost
    
    
    amortization
    
    
    value
    
    
    Cost
    
    
    amortization
    
    
    valueTrade names (b)
    
    
    5-15
    
    
    
    31
    
    
    
    7
    
    
    
    24
    
    
    
    31
    
    
    
    5
    
    
    
    26Customer relationships (c)
    
    
    5-15
    
    
    
    553
    
    
    
    108
    
    
    
    445
    
    
    
    543
    
    
    
    71
    
    
    
    472Technology (c)
    
    
    2-10
    
    
    
    64
    
    
    
    14
    
    
    
    50
    
    
    
    24
    
    
    
    9
    
    
    
    15Other (c)
    
    
    2-20
    
    
    
    148
    
    
    
    48
    
    
    
    100
    
    
    
    131
    
    
    
    27
    
    
    
    104796
    
    
    
    177
    
    
    
    619
    
    
    
    729
    
    
    
    112
    
    
    
    617 (a)
    
    At December 31, 2010 the weighted-average amortization period for finite-lived
intangibles is 10 years (December 31, 2009  10 years).(b)
    
    Certain of the Companys trade names with a cost of $17-million (2009  $17-million) have
indefinite lives for accounting purposes and accordingly are not amortized. The Company
completed its annual test for impairment of indefinite-lived intangibles in the third quarter
of 2010 and determined that there was no impairment. Trade names with a cost of $14-million
(2009  $14-million) are being amortized over their estimated useful lives.(c)
    
    Amortization expense of finite-lived intangibles for 2010 was $61-million (2009 
$56-million, 2008  $42-million) and over the next five years is estimated to be
approximately $50-million annually.
 13. Goodwill
 2010AdvancedRetail
    
    
    Wholesale
    
    
    Technologies
    
    
    Unallocated(a)
    
    
    TotalBalance, beginning of year
    
    
    1,745
    
    
    
    6
    
    
    
    50
    
    
    
    
    
    
    
    1,801Acquired during the year
    
    
    7
    
    
    
    3
    
    
    
    
    
    
    
    626
    
    
    
    636Purchase price allocation adjustments
    
    
    (1
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (1
    )Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    27
    
    
    
    27Balance, end of year (b)
    
    
    1,751
    
    
    
    9
    
    
    
    50
    
    
    
    653
    
    
    
    2,463
 2009AdvancedRetail
    
    
    Wholesale
    
    
    Technologies
    
    
    TotalBalance, beginning of year
    
    
    1,732
    
    
    
    4
    
    
    
    47
    
    
    
    1,783Acquired during the year
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Purchase price allocation adjustments
    
    
    12
    
    
    
    2
    
    
    
    
    
    
    
    14Foreign currency translation
    
    
    
    
    
    
    
    
    
    
    3
    
    
    
    3Balance, end of year (b)
    
    
    1,745
    
    
    
    6
    
    
    
    50
    
    
    
    1,801
 (a)
    
    The Company will allocate goodwill to its Business Units once it has determined the fair
value of the assets acquired, liabilities assumed and related future income tax impacts. The
Company expects that the actual amount assigned to goodwill acquired on acquisition of AWB
will change and that the change to goodwill could be material.(b)
    
    The Company completed its annual test for impairment of goodwill during the third quarter of
2010 and determined that there was no impairment.
  102
    Agrium
    2010 ANNUAL REPORT




---



##### 



14. Investment in Equity Investees
 Interest (%)
    
    
    2010
    
    
    2009Misr Fertilizers Production Company S.A.E.
(MOPCO) a private company operating
in Egypt
    
    
    26.0
    
    
    
    274
    
    
    
    270Hanfeng Evergreen Inc. (Hanfeng),
12.1 million common shares
    
    
    19.6
    
    
    
    86
    
    
    
    87Other
    
    
    
    
    
    
    29
    
    
    
    13389
    
    
    
    370
   Earnings from equity investees
    
    2010
    
    
    2009
    
    
    2008MOPCO
    
    
    17
    
    
    
    20
    
    
    
    Hanfeng
    
    
    4
    
    
    
    5
    
    
    
    4Other
    
    
    4
    
    
    
    2
    
    
    
    25
    
    
    
    27
    
    
    
    4
 Cumulative undistributed earnings
    
    2010
    
    
    2009
    
    
    2008MOPCO
    
    
    23
    
    
    
    20
    
    
    
    Hanfeng
    
    
    13
    
    
    
    9
    
    
    
    4Other
    
    
    6
    
    
    
    2
    
    
    
    42
    
    
    
    31
    
    
    
    4
 Assets, liabilities and results of operations of the above equity investees
    
    2010
    
    
    2009
    
    
    2008Net sales
    
    
    444
    
    
    
    437
    
    
    
    313Net earnings
    
    
    137
    
    
    
    105
    
    
    
    35Assets
    
    
    1,915
    
    
    
    1,364
    
    
    
    248Liabilities
    
    
    852
    
    
    
    382
    
    
    
    56Shareholders equity
    
    
    1,063
    
    
    
    982
    
    
    
    192
 15. Other Assets
 2010
    
    
    2009Investments
    
    
    2
    
    
    
    25Receivables
    
    
    34
    
    
    
    22Derivative financial instruments
    
    
    3
    
    
    
    3Deferred costs
    
    
    2
    
    
    
    20Other
    
    
    6
    
    
    
    2547
    
    
    
    95
  2010 ANNUAL REPORT
    Agrium
    103




---



##### 



16. Debt
 2010
    
    
    2009Rate (%)
    (a)
    
    Total
    
    
    Unutilized
    
    
    Utilized
    
    
    UtilizedBank indebtednessNorth American revolving credit
facilities expiring 2012 (b)
    
    
    
    
    
    
    775
    
    
    
    775
    
    
    
    
    
    
    
    European credit facilities
expiring 2011 (c)(d)
    
    
    3.07
    
    
    
    190
    
    
    
    48
    
    
    
    142
    
    
    
    74South American credit facilities
expiring 2011 (e)
    
    
    2.90
    
    
    
    114
    
    
    
    59
    
    
    
    55
    
    
    
    32Australian credit facilities expiring 2011 (f)
    
    
    9.36
    
    
    
    157
    
    
    
    57
    
    
    
    100
    
    
    
    1,236
    
    
    
    939
    
    
    
    297
    
    
    
    106
 Current portion of long-term debt
    
    2010
    
    
    20098.25% debentures due February 15, 2011 (g)
    
    
    125
    
    
    
    
 Long-term debt
    
    2010
    
    
    2009Floating rate bank loans due May 5, 2013 (h)
    
    
    460
    
    
    
    460Fixed and floating rate bank loans due April and May 2012 (i)
    
    
    14
    
    
    
    266.125% debentures due January 15, 2041 (g)(j)
    
    
    500
    
    
    
    6.75% debentures due January 15, 2019 (g)
    
    
    500
    
    
    
    5007.125% debentures due May 23, 2036 (g)
    
    
    300
    
    
    
    3007.8% debentures due February 1, 2027 (g)
    
    
    125
    
    
    
    1257.7% debentures due February 1, 2017 (g)
    
    
    100
    
    
    
    1008.25% debentures due February 15, 2011 (g)
    
    
    
    
    
    
    125Other (k)
    
    
    141
    
    
    
    732,140
    
    
    
    1,709Unamortized transaction costs
    
    
    (22
    )
    
    
    (10
    )2,118
    
    
    
    1,699
 Accounts receivable securitization(l)
    
    2010
    
    
    2009Cumulative proceeds from securitization,
beginning of period
    
    
    
    
    
    
    200Balance acquired in business acquisition
    
    
    205
    
    
    
    Proceeds from sales of receivables
    
    
    225
    
    
    
    400Securitization reduction payments
    
    
    (210
    )
    
    
    (600
    )Cumulative proceeds from securitization, end of period
    
    
    220
    
    
    
    
 (a)
    
    Weighted average rates at December 31, 2010.(b)
    
    Outstanding letters of credit issued under the Companys revolving credit facilities at
December 31, 2010 were $81-million, reducing credit available under the facilities to
$694-million.(c)
    
    The facilities bear interest at various base rates plus a fixed or variable margin. Of the
total, $1-million is secured (December 31, 2009  $137-million). Security pledged for the
utilized balance includes accounts receivable and inventories with a total carrying value of
$4-million (December 31, 2009  $87-million). The utilized balance includes Euro-denominated
debt of $93-million (December 31, 2009  $31-million).(d)
    
    In 2009, the Company entered into a multi-currency revolving facility for Euro-denominated
debt of $172-million to replace existing credit facilities. Interest is at LIBOR plus a
variable margin or EURIBOR plus a variable margin. The facility expires in December 2011.(e)
    
    For the facilities utilized, $5-million (December 31, 2009  nil) is denominated in
Argentine peso. Of the total, $38-million is uncommitted (December 31, 2009  $105-million)
of which $5-million has been utilized (December 31, 2009  $28-million).(f)
    
    The facilities bear interest at various base rates plus a fixed or variable margin. Of the
total, $14-million is secured by certain assets located in Australia. The utilized balance
includes AUD-denominated debt of $88-million and NZD-denominated debt of $11-million.(g)
    
    Debentures have various provisions that allow the Company to redeem debt prior to maturity,
at the Companys option, at specified prices.(h)
    
    The loans bear interest at LIBOR plus 0.55%.(i)
    
    South American floating rate loans bear interest at LIBOR plus 5.25% and fixed rate loans
bear interest at 1.4%.(j)
    
    On December 15, 2010, the Company issued $500-million of 6.125%, 30-year debentures for
proceeds of $490-million net of related expenses including a discount on the debt of
$5.5-million which is being amortized to interest expense using the effective interest rate
method over the life of the debentures.(k)
    
    Includes South American facilities of $115-million (December 31, 2009  $55-million) that
bear interest at 2.9% repayable in 2012.
  104
    Agrium
    2010 ANNUAL REPORT




---



##### 



(l)
    
    The Company has revolving purchase and sale agreements to sell, with limited recourse,
accounts receivable to a maximum of $200-million and AUD$250-million (December 31, 2009 
$200-million). The receivables are sold to an unrelated financial institution or in the case
of the AUD agreement, to a qualifying special purpose entity (QSPE), which then sells
interests in the receivables to a third party purchaser. The QSPE is legally separate from the
Company, as a result the assets of the QSPE (including the receivables transferred to it) are
not available to creditors of the Company, and the transferred receivables are legally not an
asset of the Company. The Company provides a security interest to the financial institution
and the QSPE in the form of accounts receivable in excess of the net cash proceeds received.
The Company has the option to increase the AUD facility to AUD$300-million as of January 2011.
The agreements expire in 2012.(m)
    
    The Company maintains a $24-million irrevocable standby letter of credit facility in favor of
a subsidiary. At December 31, 2010, $22-million was outstanding (December 31, 2009 
$22-million), which does not reduce availability under the Companys other credit facilities.(n)
    
    Revolving credit facilities require the Company maintain specific covenants described under
Capital Management.
 17. Accounts Payable
 2010
    
    
    2009Trade
    
    
    1,016
    
    
    
    989Customer prepayments
    
    
    840
    
    
    
    529Accrued liabilities
    
    
    801
    
    
    
    508Income and other taxes
    
    
    94
    
    
    
    396Accrued interest
    
    
    32
    
    
    
    30Dividends
    
    
    9
    
    
    
    9Derivative financial instruments
    
    
    51
    
    
    
    142,843
    
    
    
    2,475
 18. Other Liabilities
 2010
    
    
    2009Environmental remediation
    
    
    124
    
    
    
    140Asset retirement obligations
    
    
    106
    
    
    
    106Stock-based compensation
    
    
    63
    
    
    
    33Employee future benefits
    
    
    73
    
    
    
    68Derivative financial instruments
    
    
    33
    
    
    
    25Other
    
    
    9
    
    
    
    9408
    
    
    
    381
 19. Asset Retirement Obligations
  2010
    
    
    2009Balance, beginning of year
    
    
    106
    
    
    
    86Accretion, included in other expenses
    
    
    6
    
    
    
    6Additions
    
    
    1
    
    
    
    11Settlements
    
    
    (7
    )
    
    
    (7
    )Foreign currency translation
    
    
    
    
    
    
    10Balance, end of year
    
    
    106
    
    
    
    106
  2010 ANNUAL REPORT
    Agrium
    105




---



##### 



20. Stock-Based Compensation
 Plan
    
    Eligibility
    
    Granted
    
    Vesting period
    
    Term
    
    SettlementStock Options
and Tandem Stock
Appreciation Rights
(TSAR)
    
    Officers and
employees
    
    Annually
    
    25% per year
over four years
    
    10 years
    
    Cash or sharesStock Appreciation
Rights (SAR)
    
    Certain employees
outside Canada
    
    Annually
    
    25% per year
over four years
    
    10 years
    
    CashPerformance
Share Units
(PSU)
    
    Officers and
employees
    
    Annually
    
    On the third
anniversary of
the grant date
    
    n/a
    
    CashDirectors
Deferred
Share Units
(DSU)
    
    Directors
    
    At the
discretion of
the Board
of Directors
    
    Fully vested
upon grant
    
    n/a
    
    In cash on
directors departure
from the Board
 Stock Options and Tandem Stock Appreciation Rights Plan
   Stock option activity (number of options in thousands; weighted average price in U.S. dollars)
 2010
    
    
    2009
    
    
    2008Options and TSAR
    
    Options
    
    
    Price
    
    
    Options
    
    
    Price
    
    
    Options
    
    
    PriceOutstanding, beginning of year
    
    
    2,901
    
    
    
    31.16
    
    
    
    2,906
    
    
    
    25.95
    
    
    
    3,041
    
    
    
    23.93Granted
    
    
    238
    
    
    
    63.20
    
    
    
    517
    
    
    
    40.30
    
    
    
    297
    
    
    
    74.88Exercised
    
    
    (618
    )
    
    
    20.85
    
    
    
    (522
    )
    
    
    15.76
    
    
    
    (432
    )
    
    
    16.05Outstanding, end of year
    
    
    2,521
    
    
    
    36.98
    
    
    
    2,901
    
    
    
    31.16
    
    
    
    2,906
    
    
    
    25.95Exercisable, end of year
    
    
    1,662
    
    
    
    29.21
    
    
    
    1,829
    
    
    
    23.04
    
    
    
    1,920
    
    
    
    16.59Maximum available for future
grants, end of year
    
    
    991
    
    
    
    
    
    
    
    1,033
    
    
    
    
    
    
    
    1,489Cash received from equity
settled awards
    
    
    
    
    
    
    8
    
    
    
    
    
    
    
    7
    
    
    
    
    
    
    
    4Tax benefit from equity
settled awards
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1
 Options outstanding (number of options in thousands; weighted average remaining contractual life in years; weighted average exercise price in U.S. dollars)
 At December 31, 2010
    
    
    
    
    
    Options Outstanding
    
    
    Options ExercisableRemaining
    
    
    
    
    
    
    Exercise
    
    
    
    
    
    
    ExerciseRange of Exercise Prices
    
    contractual life
    
    
    Options
    
    
    price
    
    
    Options
    
    
    priceLess than 15.71
    
    
    3
    
    
    
    548
    
    
    
    15.59
    
    
    
    548
    
    
    
    15.5915.72 to 24.87
    
    
    4
    
    
    
    547
    
    
    
    22.69
    
    
    
    547
    
    
    
    22.6924.88 to 40.25
    
    
    6
    
    
    
    410
    
    
    
    39.73
    
    
    
    298
    
    
    
    39.7340.26 to 51.14
    
    
    8
    
    
    
    497
    
    
    
    40.44
    
    
    
    125
    
    
    
    40.7251.15 to 74.63
    
    
    8
    
    
    
    519
    
    
    
    69.11
    
    
    
    144
    
    
    
    74.076
    
    
    
    2,521
    
    
    
    36.98
    
    
    
    1,662
    
    
    
    29.21
  106
    Agrium
    2010 ANNUAL REPORT




---



##### 



Stock Appreciation Rights Plan
  SAR outstanding (number of units in thousands; weighted average remaining contractual life in years; weighted average exercise price in U.S. dollars)
 At December 31, 2010
    
    
    
    
    
    SAR Outstanding
    
    
    SAR ExercisableRemaining
    
    
    
    
    
    
    Exercise
    
    
    
    
    
    
    ExerciseRange of Exercise Prices
    
    contractual life
    
    
    Units
    
    
    price
    
    
    Units
    
    
    priceLess than 29.95
    
    
    5
    
    
    
    102
    
    
    
    23.60
    
    
    
    102
    
    
    
    23.6029.96 to 39.73
    
    
    6
    
    
    
    110
    
    
    
    39.61
    
    
    
    79
    
    
    
    39.6339.74 to 45.25
    
    
    8
    
    
    
    131
    
    
    
    40.30
    
    
    
    31
    
    
    
    40.3045.26 to 84.51
    
    
    8
    
    
    
    144
    
    
    
    68.25
    
    
    
    34
    
    
    
    73.897
    
    
    
    487
    
    
    
    44.92
    
    
    
    246
    
    
    
    37.78
 Performance Share Units Plan
   PSU Activity (number of PSUs in thousands)
    
    2010
    
    
    2009
    
    
    2008Outstanding, beginning of year
    
    
    688
    
    
    
    636
    
    
    
    816Granted
    
    
    200
    
    
    
    327
    
    
    
    146Settled
    
    
    (229
    )
    
    
    (275
    )
    
    
    (326
    )Outstanding, end of year
    
    
    659
    
    
    
    688
    
    
    
    636
 Directors Deferred Share Units Plans
   Compensation expense (recovery) by plan
    
    2010
    
    
    2009
    
    
    2008Stock options and TSAR
    
    
    49
    
    
    
    29
    
    
    
    (11
    )SAR
    
    
    14
    
    
    
    9
    
    
    
    (7
    )PSU
    
    
    40
    
    
    
    30
    
    
    
    (4
    )DSU
    
    
    7
    
    
    
    5
    
    
    
    (3
    )110
    
    
    
    73
    
    
    
    (25
    )
   2010 ANNUAL REPORT
    Agrium
    107




---



##### 



21. Employee Future Benefits
 Obligations and assets (a)
    
    Defined benefit pension plans
    
    
    Post-retirement benefit plans2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Change in accrued benefit obligationsBalance, beginning of year
    
    
    204
    
    
    
    170
    
    
    
    192
    
    
    
    58
    
    
    
    60
    
    
    
    89Obligations associated
with acquisitions (b)
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    Foreign currency translation
on Canadian obligations
    
    
    6
    
    
    
    18
    
    
    
    (26
    )
    
    
    2
    
    
    
    11
    
    
    
    (17
    )Interest cost
    
    
    12
    
    
    
    11
    
    
    
    12
    
    
    
    3
    
    
    
    3
    
    
    
    5Service cost
    
    
    4
    
    
    
    4
    
    
    
    4
    
    
    
    2
    
    
    
    2
    
    
    
    3Actuarial loss (gain)
    
    
    22
    
    
    
    10
    
    
    
    (8
    )
    
    
    5
    
    
    
    (16
    )
    
    
    (16
    )Amendments
    
    
    
    
    
    
    1
    
    
    
    2
    
    
    
    
    
    
    
    1
    
    
    
    (3
    )Benefits paid
    
    
    (18
    )
    
    
    (10
    )
    
    
    (10
    )
    
    
    (2
    )
    
    
    (3
    )
    
    
    (1
    )Balance, end of year
    
    
    230
    
    
    
    204
    
    
    
    170
    
    
    
    68
    
    
    
    58
    
    
    
    60Change in plan assetsFair value, beginning of year
    
    
    154
    
    
    
    113
    
    
    
    166
    
    
    
    
    
    
    
    
    
    
    
    Assets associated
with acquisitions (b)
    
    
    
    
    
    
    
    
    
    
    4
    
    
    
    
    
    
    
    
    
    
    
    Foreign currency translation
on Canadian assets
    
    
    2
    
    
    
    11
    
    
    
    (16
    )
    
    
    
    
    
    
    
    
    
    
    Amendments
    
    
    
    
    
    
    
    
    
    
    (7
    )
    
    
    
    
    
    
    
    
    
    
    Actual return on plan assets
    
    
    14
    
    
    
    19
    
    
    
    (27
    )
    
    
    1
    
    
    
    2
    
    
    
    Employer contributions
    
    
    8
    
    
    
    21
    
    
    
    3
    
    
    
    1
    
    
    
    1
    
    
    
    1Benefits paid
    
    
    (16
    )
    
    
    (10
    )
    
    
    (10
    )
    
    
    (2
    )
    
    
    (3
    )
    
    
    (1
    )Fair value, end of year
    
    
    162
    
    
    
    154
    
    
    
    113
    
    
    
    
    
    
    
    
    
    
    
    Unfunded status
    
    
    68
    
    
    
    50
    
    
    
    57
    
    
    
    68
    
    
    
    58
    
    
    
    60Unrecognized net (loss) gain
    
    
    (70
    )
    
    
    (53
    )
    
    
    (52
    )
    
    
    (1
    )
    
    
    4
    
    
    
    (9
    )Unrecognized prior service
(cost) benefit
    
    
    (4
    )
    
    
    (4
    )
    
    
    (3
    )
    
    
    6
    
    
    
    6
    
    
    
    8Accrued employee future benefit
(asset) liability
    
    
    (6
    )
    
    
    (7
    )
    
    
    2
    
    
    
    73
    
    
    
    68
    
    
    
    59Amounts recognized in the
consolidated balance sheets
consist of:Other assets: Prepaid employee
future benefits
    
    
    (6
    )
    
    
    (7
    )
    
    
    (4
    )
    
    
    
    
    
    
    
    
    
    
    Other liabilities
    
    
    
    
    
    
    
    
    
    
    6
    
    
    
    73
    
    
    
    68
    
    
    
    59(6
    )
    
    
    (7
    )
    
    
    2
    
    
    
    73
    
    
    
    68
    
    
    
    59
 (a)
    
    Disclosures for employee future benefits have a measurement date of December 31, 2010.
The effective date of the most recent actuarial valuations for funding purposes for the
Canadian registered plans was December 31, 2007. The next required valuation date for funding
purposes is December 31, 2010. For U.S. registered plans, the effective date of the most
recent actuarial valuation for funding purposes was January 1, 2010 and the next required
valuation is January 1, 2011.(b)
    
    Obligations and assets associated with acquisitions in 2008 relate to the Companys
acquisition of UAP.(c)
    
    The estimated aggregate expected contribution to fund the Companys defined benefit pension
plans for 2011 is $8-million.
 Defined benefit
    
    
    Post-retirementExpected benefit payments
    
    pension plans
    
    
    benefit plans
    
    
    Total2011
    
    
    11
    
    
    
    2
    
    
    
    132012
    
    
    12
    
    
    
    2
    
    
    
    142013
    
    
    12
    
    
    
    2
    
    
    
    142014
    
    
    12
    
    
    
    2
    
    
    
    142015
    
    
    19
    
    
    
    3
    
    
    
    222016 through 2020
    
    
    73
    
    
    
    18
    
    
    
    91
  108
    Agrium
    2010 ANNUAL REPORT




---



##### 



Actuarial calculations of expense
    
    2010
    
    
    2009
    
    
    2008Defined benefit pension plansService cost for benefits earned during the year
    
    
    4
    
    
    
    4
    
    
    
    4Interest cost on accrued benefit obligations
    
    
    12
    
    
    
    11
    
    
    
    12Expected return on plan assets
    
    
    (10
    )
    
    
    (9
    )
    
    
    (12
    )Net amortization and deferral
    
    
    3
    
    
    
    4
    
    
    
    1Net expense
    
    
    9
    
    
    
    10
    
    
    
    5Post-retirement benefit plansService cost for benefits earned during the year
    
    
    2
    
    
    
    2
    
    
    
    3Interest cost on accrued benefit obligations
    
    
    3
    
    
    
    3
    
    
    
    5Net amortization and deferral
    
    
    (1
    )
    
    
    (1
    )
    
    
    1Net expense
    
    
    4
    
    
    
    4
    
    
    
    9Defined contribution pension plans
    
    
    34
    
    
    
    30
    
    
    
    29Total expense
    
    
    47
    
    
    
    44
    
    
    
    43
 Actuarial assumptions
    
    Future benefits obligation
    
    
    Future benefits expense(percent)
    
    2010
    
    
    2009
    
    
    2008
    
    
    2010
    
    
    2009
    
    
    2008Defined benefit pension plansDiscount rate (a)
    
    
    5
    
    
    
    6
    
    
    
    6
    
    
    
    6
    
    
    
    6
    
    
    
    6Long-term rate of
return on assets (b)
    
    
    n/a
    
    
    
    n/a
    
    
    
    n/a
    
    
    
    7
    
    
    
    7
    
    
    
    7Rate of increase in
compensation levels
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    3
    
    
    
    4Post-retirement benefit plansDiscount rate (a)
    
    
    5
    
    
    
    6
    
    
    
    6
    
    
    
    5
    
    
    
    6
    
    
    
    6
 (a)
    
    The discount rate assumed is the rate at which the pension and post-retirement
obligations could effectively be settled. The rate is based on high-quality (minimum rating of
AA or greater) fixed income investments with cash flows that match the timing and amount of
the plans expected cash flows.(b)
    
    The Companys assumption for the long-term rate of return on assets is based on the long-term
expectations of inflation, together with the expected long-term real return for each asset
class, weighted in accordance with the stated investment policy for the plan. Expectations of
real returns and inflation are based on a combination of current market conditions, historical
capital market data and future expectations.
 Assumed and ultimate health care cost trend rates
    
    2010
    
    
    2009
    
    
    2008Health care cost trend rate assumed
for the next fiscal year
    
    
    8
    
    
    
    8
    
    
    
    8Ultimate health care cost trend rate
    
    
    5
    
    
    
    5
    
    
    
    5Fiscal year the rate reaches the
ultimate trend rate
    
    
    2018
    
    
    
    2017
    
    
    
    2017
 One percentage
    
    
    One percentageEffect of assumed health care cost trend rate changes
    
    point increase
    
    
    point decreaseAccumulated post-retirement benefitobligation as of December 31, 2010
    
    
    9
    
    
    
    (7
    )Total of service and interest cost
    
    
    1
    
    
    
    (1
    )
  2010 ANNUAL REPORT
    Agrium
    109




---



##### 



Asset Allocation and Investment Strategy
  Plan assets  asset allocation
    
    Target allocation
    
    
    Plan assetsAsset categories (percent)
    
    2011
    
    
    2010
    
    
    2009Cash and other
    
    
    0-10
    
    
    
    1
    
    
    
    2Equity securities (a)
    
    
    50-75
    
    
    
    61
    
    
    
    61Debt securities (b)
    
    
    25-50
    
    
    
    38
    
    
    
    37
 (a)
    
    Includes approximately 30 percent investments in Canadian common equities and 55 percent
in U.S. common equities in a variety of sectors including financial, energy, materials, health
care and technology.(b)
    
    Includes Canadian and U.S. government bonds and investment grade corporate bonds of Canadian
and U.S. issuers.
 Fair value of plan assets
    
    Level 1
    
    
    Level 2
    
    
    TotalCash and cash equivalents
    
    
    6
    
    
    
    
    
    
    
    6Equity securitiesCanadian common stocks
    
    
    28
    
    
    
    
    
    
    
    28U.S. common stocks
    
    
    54
    
    
    
    
    
    
    
    54Foreign common stocks
    
    
    15
    
    
    
    
    
    
    
    15Debt securitiesFixed income
    
    
    
    
    
    
    34
    
    
    
    34Government securities
    
    
    25
    
    
    
    
    
    
    
    25128
    
    
    
    34
    
    
    
    162
 22. Accumulated Other Comprehensive Income
 2010
    
    
    2009Cash flow hedges, net of tax
    
    
    
    
    
    
    2Available for sale financial instruments,
net of tax
    
    
    
    
    
    
    29Foreign currency translation
    
    
    2
    
    
    
    (78
    )2
    
    
    
    (47
    )
  110
    Agrium
    2010 ANNUAL REPORT




---



##### 



23. Financial Instruments
 Risk Management
  Item
    
    Affected by
    
    Risk management policiesSales
    
    Product prices, Foreign currency exchange
rates: USD vs. CAD, ARS (Argentine peso),
EUR, GBP, AUD
    
    Foreign currency forward
and option contractsCost of product sold 
natural gas and power
    
    Price of natural gas and power
    
    Natural gas forward, swap and option
contracts and heat rate swap contractsCost of product sold 
product purchased for resale
    
    Price of nutrients purchased for resale
    
    Nutrient swaps and product
purchase commitmentsSelling, general and administrative,
and other expenses denominated
in local currencies
    
    Currency exchange rates: USD vs. CAD,
ARS, EUR, GBP, AUD
    
    Foreign currency forward and
option contractsCapital expenditures
    
    Currency exchange rates: USD vs. CAD,
ARS, EUR, AUD
    
    Foreign currency forward and
option contractsInterest expense
    
    USD, EUR and AUD interest rates
    
    Maintaining a combination of fixed and
floating rate debt; interest rate swaps to
manage risk for up to 10 yearsFinancial instrumentsMarket risk  currency risk
    
    USD balances in Canadian, European and
Australian subsidiaries; Foreign currencies
held in USD denominated subsidiaries
    
    Foreign currency forward and option
contracts to manage risk for up to
three yearsMarket risk  natural gas,
power and nutrient price risk
    
    Market prices of natural gas,
power and nutrients
    
    Natural gas forward, swap and option
contracts and heat rate swap contracts to
manage power price risk for up to five yearsMarket risk  interest rate risk
    
    Changes in market interest rates
    
    Maintaining a combination of fixed and
floating rate debt; interest rate swaps to
manage risk for up to 10 yearsCredit risk
    
    Ability of customers or counterparties to
financial instruments to meet obligations
    
    Credit approval and monitoring practices;
counterparty policiesLiquidity risk
    
    Fluctuations in cash flows
    
    Preparation and monitoring of detailed
forecasts of cash flows; maintenance of cash
balances and uncommitted, multiple year
credit facilities
  Market Risk
  a) Currency risk
  2010
    
    
    2009Net U.S. dollar denominated balance
in Canadian operations
    
    
    625
    
    
    
    254A $10-million impact on net earnings
requires a strengthening or weakening
in the U.S. dollar against the
Canadian dollar
    
    
    0.02
    
    
    
    0.06
  2010 ANNUAL REPORT
    Agrium
    111




---



##### 



Balances in non-U.S. dollar subsidiaries
 2010
    
    
    2009CAD
    
    
    Euro
    
    
    AUD
    
    
    CAD
    
    
    Euro
    
    
    AUDCash and cash equivalents
    
    
    40
    
    
    
    6
    
    
    
    70
    
    
    
    (2
    )
    
    
    5
    
    
    
    Accounts receivable
    
    
    126
    
    
    
    141
    
    
    
    321
    
    
    
    69
    
    
    
    65
    
    
    
    Bank indebtedness
    
    
    
    
    
    
    (142
    )
    
    
    (88
    )
    
    
    
    
    
    
    (31
    )
    
    
    Accounts payable
    
    
    (648
    )
    
    
    (86
    )
    
    
    (307
    )
    
    
    (246
    )
    
    
    (38
    )
    
    
    (482
    )
    
    
    (81
    )
    
    
    (4
    )
    
    
    (179
    )
    
    
    1
    
    
    
    
 2010
    

    2009CAD
    
    
    Euro
    
    
    AUD
    
    
    CAD
    
    
    Euro
    
    
    AUDA $10-million increase in
comprehensive income requires
a weakening against
the U.S. dollar
    
    
    (0.02
    )
    
    
    (0.11
    )
    
    
    
    
    
    
    (0.06
    )
    
    
    
    
    
    
    A $10-million decrease in
comprehensive income requires
a strengthening against
the U.S. dollar
    
    
    0.02
    
    
    
    0.08
    
    
    
    
    
    
    
    0.05
    
    
    
    
    
    
    
    
 Foreign exchange derivative financial instruments outstanding
 2010
    
    
    2009Notional
    
    
    
    
    
    
    Fair value
    
    
    Notional
    
    
    
    
    
    
    Fair value(millions,
    
    
    
    
    
    
    assets
    
    
    (millions,
    
    
    
    
    
    
    assetsSell/Buy
    
    buy currency)
    
    
    Maturities
    
    
    (liabilities)
    
    
    buy currency)
    
    
    Maturities
    
    
    (liabilities)USD/CAD forwards
    
    CAD 40
    
    
    2011
    
    
    
    3
    
    
    CAD 46
    
    
    2010
    
    
    
    1CAD/USD forwards
    
    USD 370
    
    
    2011
    
    
    
    (7
    )
    
    
    
    
    
    
    
    
    
    
    AUD/USD forwards
    
    USD 381
    
    
    2011
    
    
    
    (24
    )
    
    
    
    
    
    
    
    
    
    
    EUR/USD forwards
    
    
    
    
    
    
    
    
    
    
    
    
    
    USD 9
    
    
    2010
    
    
    
    GBP/USD forwards
    
    
    
    
    
    
    
    
    
    
    
    
    
    USD 2
    
    
    2010
    
    
    
    (28
    )
    
    
    
    
    
    
    
    
    
    
    1
 b) Commodity price risk
 2010
    
    
    2009A $10-million increase in net earnings requires an increase in gas prices per MMBtu
    
    
    2.17
    
    
    
    0.47A $10-million decrease in net earnings requires a decrease in gas prices per MMBtu
    
    
    (2.30
    )
    
    
    (0.47
    )
  112
    Agrium
    2010 ANNUAL REPORT




---



##### 



Natural gas, power and nutrient derivative financial instruments outstanding
 2010
    
    
    2009Fair value
    
    
    
    
    
    
    
    
    
    
    Fair valueassets
    
    
    
    
    
    
    
    
    
    
    assetsNotional
    
    
    Maturities
    
    
    (liabilities)
    
    
    Notional
    
    
    Maturities
    
    
    (liabilities)Natural gas (BCF)NYMEX contractsSwaps
    
    
    33
    
    
    
    2011
    
    
    
    (50
    )
    
    
    67
    
    
    
    2010
    
    
    
    (35
    )to 2013
    
    
    
    
    
    
    
    
    
    
    to 2013Collars
    
    
    12
    
    
    
    2011
    
    
    
    (1
    )
    
    
    23
    
    
    
    2010
    
    
    
    5(swap with options)
    
    
    
    
    
    to 2012
    
    
    
    
    
    
    
    
    
    
    to 2012El Paso swaps
    
    
    2
    
    
    
    2011
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    AECO contractsSwaps
    
    
    7
    
    
    
    2011
    
    
    
    (2
    )
    
    
    
    
    
    
    
    
    
    
    54
    
    
    
    
    
    
    
    (53
    )
    
    
    90
    
    
    
    
    
    
    
    (30
    )Power  Swaps (GWh)
    
    
    412
    
    
    
    2011
    
    
    
    4
    
    
    
    552
    
    
    
    2010
    
    
    
    (2
    )to 2013
    
    
    
    
    
    
    
    
    
    
    to 2013Nutrient 
Urea swaps (short tons)
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    24,500
    
    
    
    2010
    
    
    
    1(49
    )
    
    
    
    
    
    
    
    
    
    
    (31
    )
 c) Interest rate risk
   Credit Risk
  Allowance for doubtful accounts
    
    2010
    
    
    2009Balance, beginning of period
    
    
    46
    
    
    
    36Additions
    
    
    55
    
    
    
    47Write-offs
    
    
    (48
    )
    
    
    (37
    )Balance, end of period
    
    
    53
    
    
    
    46Balance as a percent of trade
accounts receivable (%)
    
    
    4
    
    
    
    4
  Maximum credit exposure based on derivative financial instruments in an asset position
    
    2010
    
    
    2009Foreign exchange contracts
    
    
    3
    
    
    
    1Natural gas, power and nutrient contracts
    
    
    4
    
    
    
    87
    
    
    
    9
  2010 ANNUAL REPORT
    Agrium
    113




---



##### 



Liquidity Risk
   Fair Values
  Financial instrument
    
    Classification
    
    Carrying ValueCash and cash equivalents
    
    Held for trading
    
    Fair valueAccounts receivable (a)
    
    Loans and receivables
    
    Amortized costAccounts receivable  derivative financial instruments (b)
    
    Held for trading
    
    Fair valueMarketable securities
    
    Available for sale or held for trading
    
    Fair valueOther assets
    
    Loans and receivables
    
    Amortized costOther assets  derivative financial instruments (b)
    
    Held for trading
    
    Fair valueBank indebtedness (a)
    
    Other liabilities
    
    Amortized costAccounts payable (a)
    
    Other liabilities
    
    Amortized costAccounts payable  derivative financial instruments (b)
    
    Held for trading
    
    Fair valueLong-term debt (c)
    
    Other liabilities
    
    Amortized costOther liabilities
    
    Other liabilities
    
    Amortized costOther liabilities  derivative financial instruments (b)
    
    Held for trading
    
    Fair value
 
 (a)
    
    Carrying value approximates fair value due to the short-term nature of the instruments.(b)
    
    Fair value is recorded at the estimated amount the Company would receive or pay to terminate
the contracts determined based on the Companys assessment of available market information and
valuation methodologies based on industry accepted third-party models using assumptions about
discount rates and the timing of future cash flows, based on observable market inputs such as
interest yield curves.(c)
    
    Fair value of floating-rate loans approximates carrying value. Long-term debt including current portion
    
    2010
    
    
    2009Fair value (level 2)
    
    
    2,465
    
    
    
    1,805Carrying value
    
    
    2,265
    
    
    
    1,709Weighted-average effective
interest rate (%)
    
    
    6
    
    
    
    6
 Fair value of financial instruments
    
    2010Level 1
    
    
    Level 2
    
    
    Netting
    
    
    TotalCash and cash equivalents
    
    
    540
    
    
    
    
    
    
    
    
    
    
    
    540Accounts receivableForeign exchange derivative financial instruments
    
    
    
    
    
    
    3
    
    
    
    
    
    
    
    3Gas, power and nutrient derivative financial instruments
    
    
    42
    
    
    
    5
    
    
    
    (46
    )
    
    
    1Marketable securitiesOther (held for trading)
    
    
    3
    
    
    
    
    
    
    
    
    
    
    
    3Other assetsGas, power and nutrient derivative financial instruments
    
    
    24
    
    
    
    5
    
    
    
    (26
    )
    
    
    3Other (available for sale)
    
    
    2
    
    
    
    
    
    
    
    
    
    
    
    2Accounts payableForeign exchange derivative financial instruments
    
    
    
    
    
    
    (31
    )
    
    
    
    
    
    
    (31
    )Gas, power and nutrient derivative financial instruments
    
    
    (61
    )
    
    
    (5
    )
    
    
    46
    
    
    
    (20
    )Other liabilitiesGas, power and nutrient derivative financial instruments
    
    
    (57
    )
    
    
    (2
    )
    
    
    26
    
    
    
    (33
    )
  114
    Agrium
    2010 ANNUAL REPORT




---



##### 



Fair value of financial instruments
    
    2009Level 1
    
    
    Level 2
    
    
    Netting
    
    
    TotalCash and cash equivalents
    
    
    933
    
    
    
    
    
    
    
    
    
    
    
    933Accounts receivableForeign exchange derivative financial instruments
    
    
    
    
    
    
    1
    
    
    
    
    
    
    
    1Gas, power and nutrient derivative financial instruments
    
    
    35
    
    
    
    6
    
    
    
    (36
    )
    
    
    5Marketable securitiesInvestment in CF (available for sale)
    
    
    113
    
    
    
    
    
    
    
    
    
    
    
    113Other (held for trading)
    
    
    1
    
    
    
    
    
    
    
    
    
    
    
    1Other assetsGas, power and nutrient derivative financial instruments
    
    
    26
    
    
    
    3
    
    
    
    (26
    )
    
    
    3Other (available for sale)
    
    
    25
    
    
    
    
    
    
    
    
    
    
    
    25Accounts payableGas, power and nutrient derivative financial instruments
    
    
    (44
    )
    
    
    (6
    )
    
    
    36
    
    
    
    (14
    )Other liabilitiesGas, power and nutrient derivative financial instruments
    
    
    (47
    )
    
    
    (4
    )
    
    
    26
    
    
    
    (25
    )
 24. Commitments
 2011
    
    
    2012
    
    
    2013
    
    
    2014
    
    
    2015Cost of product soldOperating lease commitments (a)
    
    
    189
    
    
    
    102
    
    
    
    82
    
    
    
    73
    
    
    
    65Natural gas and other (b)(c)
    
    
    398
    
    
    
    71
    
    
    
    65
    
    
    
    71
    
    
    
    74Power, sulfuric acid and other (d)
    
    
    90
    
    
    
    50
    
    
    
    47
    
    
    
    37
    
    
    
    35OtherLong-term debt and capital
lease repayments (e)
    
    
    239
    
    
    
    113
    
    
    
    568
    
    
    
    106
    
    
    
    106Derivative financial instrumentsNatural gas
    
    
    20
    
    
    
    18
    
    
    
    15
    
    
    
    
    
    
    
    936
    
    
    
    354
    
    
    
    777
    
    
    
    287
    
    
    
    280
 
 (a)
    
    Operating lease commitments consist primarily of leases for rail cars and contractual
commitments at distribution facilities in Wholesale, vehicles and application equipment in Retail,
and office equipment and property leases throughout the Companys operations. Commitments represent
minimum payments under each agreement in each of the next five years. In 2010, expenses for
operating leases were $182-million (2009  $162-million; 2008  $158-million).(b)
    
    The Companys minimum commitments for North American natural gas purchases, which are
floating-rate contracts, are calculated using the prevailing regional gas prices for U.S.
facilities and the AECO forward prices for Canadian facilities at December 31, 2010.(c)
    
    Commitments include the Companys proportionate share of commitments of joint ventures.
Profertil has three long-term gas contracts denominated in U.S. dollars, expiring in 2017. These
three contracts account for approximately 80 percent of Profertils gas requirements. Repsol-YPF,
our joint venture partner in Profertil, supplies approximately 27 percent of the gas under these
contracts.(d)
    
    The Company has a power co-generation agreement for its Carseland facility, which expires
December 31, 2026. The minimum commitment under this agreement is to purchase 60 megawatt-hours of
power per hour (MW/hr) 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.(e)
    
    Payments include interest. 25. Guarantees
  26. Contingencies
 Environmental Remediation
   2010 ANNUAL REPORT
    Agrium
    115




---



##### 



Litigation
 Oil-For-Food Programme
    Potash
    Other
   27. Capital Management
   2010
    
    
    2009
    
    
    2008Net debt to net debt plus equity (%) (a)
    
    
    27
    
    
    
    16
    
    
    
    31Interest coverage (multiple) (b)
    
    
    13.4
    
    
    
    7.5
    
    
    
    22.1
 
 (a)
    
    Net debt includes bank indebtedness and long-term debt, net of cash and cash equivalents.
Equity includes shareholders equity.(b)
    
    Interest coverage is the last twelve months net earnings from continuing operations before
interest expense, income taxes, depreciation, amortization and asset impairment divided by
interest, which includes interest on long-term debt plus other interest.(c)
    
    The measures of debt, equity and net earnings from continuing operations described above are
non-GAAP financial measures which do not have a standardized meaning prescribed by Canadian GAAP
and therefore may not be comparable to similar measures presented by other issuers.(d)
    
    The Companys strategy for managing capital is unchanged from December 31, 2009.   116
    Agrium
    2010 ANNUAL REPORT




---



##### 



28. Segmentation
 2010
    
    
    2009
    
    
    2008Consolidated net salesRetailCrop nutrients
    
    
    3,001
    
    
    
    2,522
    
    
    
    2,718Crop protection products
    
    
    2,703
    
    
    
    2,638
    
    
    
    2,115Seed
    
    
    877
    
    
    
    731
    
    
    
    432Services and other
    
    
    388
    
    
    
    273
    
    
    
    2516,969
    
    
    
    6,164
    
    
    
    5,516WholesaleNitrogen
    
    
    1,343
    
    
    
    1,247
    
    
    
    1,815Potash
    
    
    646
    
    
    
    333
    
    
    
    816Phosphate
    
    
    548
    
    
    
    436
    
    
    
    847Product purchased for resale
    
    
    993
    
    
    
    816
    
    
    
    971Other
    
    
    201
    
    
    
    187
    
    
    
    2373,731
    
    
    
    3,019
    
    
    
    4,686Advanced Technologies
    
    
    390
    
    
    
    304
    
    
    
    352Other (a)(b)
    
    
    (570
    )
    
    
    (358
    )
    
    
    (523
    )10,520
    
    
    
    9,129
    
    
    
    10,031Consolidated inter-segment sales(b)Retail
    
    
    28
    
    
    
    4
    
    
    
    5Wholesale
    
    
    490
    
    
    
    311
    
    
    
    459Advanced Technologies
    
    
    52
    
    
    
    43
    
    
    
    59570
    
    
    
    358
    
    
    
    523Consolidated net earnings from
continuing operationsRetail
    
    
    410
    
    
    
    163
    
    
    
    480Wholesale
    
    
    866
    
    
    
    495
    
    
    
    1,478Advanced Technologies
    
    
    12
    
    
    
    3
    
    
    
    33Other (a)
    
    
    (185
    )
    
    
    (80
    )
    
    
    25Earnings before interest
and income taxes (c)
    
    
    1,103
    
    
    
    581
    
    
    
    2,016Interest on long-term debt
    
    
    88
    
    
    
    91
    
    
    
    82Other interest
    
    
    19
    
    
    
    19
    
    
    
    23Earnings before income taxes (c)
    
    
    996
    
    
    
    471
    
    
    
    1,911Income taxes
    
    
    265
    
    
    
    105
    
    
    
    589731
    
    
    
    366
    
    
    
    1,322
 
 (a)
    
    The Other segment is a non-operating segment for inter-segment eliminations
and corporate functions.(b)
    
    Net sales between segments are accounted for at prices that approximate fair
market value.(c)
    
    Net of non-controlling interests.  2010 ANNUAL REPORT
    Agrium
    117




---



##### 



2010
    
    
    2009
    
    
    2008Total assetsRetail
    
    
    6,630
    
    
    
    5,393
    
    
    
    5,536Wholesale
    
    
    2,550
    
    
    
    3,205
    
    
    
    3,981Advanced Technologies
    
    
    460
    
    
    
    418
    
    
    
    348Other
    
    
    1,665
    
    
    
    769
    
    
    
    (28
    )Discontinued operations
    
    
    1,412
    
    
    
    
    
    
    
    12,717
    
    
    
    9,785
    
    
    
    9,837Capital expendituresRetail
    
    
    148
    
    
    
    77
    
    
    
    54Wholesale
    
    
    264
    
    
    
    201
    
    
    
    432Advanced Technologies
    
    
    18
    
    
    
    27
    
    
    
    12Other
    
    
    11
    
    
    
    8
    
    
    
    8441
    
    
    
    313
    
    
    
    506
 2010
    
    
    2009
    
    
    2008Net Sales
    
    
    PP&E
    
    
    Goodwill
    
    
    Net Sales
    
    
    PP&E
    
    
    Goodwill
    
    
    Net Sales
    
    
    PP&E
    
    
    GoodwillCanada
    
    
    1,329
    
    
    
    1,139
    
    
    
    27
    
    
    
    1,073
    
    
    
    968
    
    
    
    2
    
    
    
    1,704
    
    
    
    682
    
    
    
    17United States
    
    
    7,899
    
    
    
    658
    
    
    
    1,772
    
    
    
    7,146
    
    
    
    583
    
    
    
    1,793
    
    
    
    7,296
    
    
    
    535
    
    
    
    1,762Europe
    
    
    583
    
    
    
    6
    
    
    
    9
    
    
    
    495
    
    
    
    7
    
    
    
    6
    
    
    
    480
    
    
    
    4
    
    
    
    4South America
    
    
    497
    
    
    
    226
    
    
    
    2
    
    
    
    283
    
    
    
    221
    
    
    
    
    
    
    
    477
    
    
    
    230
    
    
    
    Australia and Asia
    
    
    144
    
    
    
    70
    
    
    
    653
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    Other
    
    
    68
    
    
    
    
    
    
    
    
    
    
    
    132
    
    
    
    3
    
    
    
    
    
    
    
    74
    
    
    
    585
    
    
    
    10,520
    
    
    
    2,099
    
    
    
    2,463
    
    
    
    9,129
    
    
    
    1,782
    
    
    
    1,801
    
    
    
    10,031
    
    
    
    2,036
    
    
    
    1,783
  118
    Agrium
    2010 ANNUAL REPORT




---



##### 



29. Joint Ventures
   Statements of operations
    
    2010
    
    
    2009
    
    
    2008Net sales
    
    
    347
    
    
    
    353
    
    
    
    408Expenses
    
    
    257
    
    
    
    282
    
    
    
    322Income taxes
    
    
    32
    
    
    
    26
    
    
    
    27Proportionate share of net earnings of joint ventures
    
    
    58
    
    
    
    45
    
    
    
    59
 Statements of cash flows
    
    2010
    
    
    2009
    
    
    2008Operating activities
    
    
    38
    
    
    
    78
    
    
    
    61Investing activities
    
    
    (10
    )
    
    
    (1
    )
    
    
    (13
    )Financing activities
    
    
    (43
    )
    
    
    (56
    )
    
    
    (28
    )Effect of exchange rate changes on
cash and cash equivalents
    
    
    (4
    )
    
    
    
    
    
    
    Proportionate share of (decrease)
increase in cash and cash
equivalents of joint ventures
    
    
    (19
    )
    
    
    21
    
    
    
    20
 Balance sheets
    
    2010
    
    
    2009Current assets
    
    
    231
    
    
    
    111Long-term assets
    
    
    253
    
    
    
    202484
    
    
    
    313Current liabilities
    
    
    133
    
    
    
    69Long-term liabilities
    
    
    19
    
    
    
    31152
    
    
    
    100Proportionate share of net assets
of joint ventures
    
    
    332
    
    
    
    213Cumulative earnings from the
Companys interest in joint ventures
included in retained earnings
    
    
    91
    
    
    
    59
  2010 ANNUAL REPORT
    Agrium
    119