Business Segments

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Business Segments

BUSINESS SEGMENTS

The reportable segments are determined by management based upon factors such as products and services, production processes, technologies, market dynamics, and for which segment financial information is available for our chief operating decision maker.

For a description of our business segments see Note 1 of our Notes to Consolidated Financial Statements. We evaluate performance based on the operating earnings of the respective business segments, which includes certain allocations of corporate selling, general and administrative expenses. The segment results may not represent the actual results that would be expected if they were independent, stand-alone businesses. Corporate, Eliminations and Other primarily represents unallocated corporate office activities and eliminations. All intersegment transactions are eliminated within Corporate, Eliminations and other.

Segment information for the years 2016, 2015 and 2014 is as follows:

(in millions)	Phosphates			Potash			International Distribution			Corporate, Eliminations and Other			Total
Year Ended December 31, 2016
Net sales to external customers	$	2,928.4		$	1,673.0		$	2,532.5		$	28.9		$	7,162.8
Intersegment net sales(a)	782.5			12.7			1.0			(796.2		)	—
Net sales	3,710.9			1,685.7			2,533.5			(767.3		)	7,162.8
Gross margin(a)	349.8			256.6			146.2			57.4			810.0
Canadian resource taxes	—			101.1			—			—			101.1
Gross margin (excluding Canadian resource taxes)	349.8			357.7			146.2			57.4			911.1
Operating earnings (loss)	47.8			138.8			74.3			58.1			319.0
Capital expenditures	380.0			416.7			23.9			22.5			843.1
Depreciation, depletion and amortization expense	362.4			308.7			15.3			24.8			711.2
Equity in net earnings (loss) of nonconsolidated companies	0.2			(15.5		)	(0.1		)	—			(15.4		)
Year Ended December 31, 2015
Net sales to external customers	$	3,920.9		$	2,437.9		$	2,503.7		$	32.8		$	8,895.3
Intersegment net sales(a)	699.3			9.1			1.8			(710.2		)	—
Net sales	4,620.2			2,447.0			2,505.5			(677.4		)	8,895.3
Gross margin(a)	837.1			788.3			147.8			(55.3		)	1,717.9
Canadian resource taxes	—			248.0			—			—			248.0
Gross margin (excluding Canadian resource taxes)	837.1			1,036.3			147.8			(55.3		)	1,965.9
Operating earnings (loss)	653.5			641.7			68.4			(84.8		)	1,278.8
Capital expenditures	526.8			431.5			22.5			19.5			1,000.3
Depreciation, depletion and amortization expense	389.3			310.7			13.8			26.0			739.8
Equity in net earnings (loss) of nonconsolidated companies	(3.4		)	—			(0.5		)	1.5			(2.4		)
Year Ended December 31, 2014
Net sales to external customers	$	3,946.8		$	2,839.9		$	2,132.8		$	136.3		$	9,055.8
Intersegment net sales(a)	690.3			11.7			1.7			(703.7		)	—
Net sales	4,637.1			2,851.6			2,134.5			(567.4		)	9,055.8
Gross margin(a)	937.1			923.2			147.2			(80.9		)	1,926.6
Canadian resource taxes	—			168.4			—			—			168.4
Gross margin (excluding Canadian resource taxes)	937.1			1,091.6			147.2			(80.9		)	2,095.0
Carlsbad restructuring expense	—			125.4			—			—			125.4
Operating earnings (loss)	709.2			656.2			75.7			(129.3		)	1,311.8
Capital expenditures	403.6			470.7			35.4			19.4			929.1
Depreciation, depletion and amortization expense	359.7			355.1			8.6			27.5			750.9
Equity in net earnings (loss) of nonconsolidated companies	(4.1		)	—			(0.5		)	2.4			(2.2		)
Total assets as of December 31, 2016	$	7,679.7		$	7,777.9		$	1,477.1		$	(94.0	)	$	16,840.7
Total assets as of December 31, 2015	8,369.8			8,363.9			1,695.6			(1,039.8		)	17,389.5

______________________________

(a) Certain intercompany sales within the Phosphates segment are recognized as revenue before the final price is determined. These transactions had the effect of increasing Phosphate segment revenues and gross margin by $36.3 million and $2.0 million, respectively, for the twelve months endedDecember 31, 2015 and $35.6 million and $5.7 million, respectively, for the twelve months ended December 31, 2014. There were no intersegment sales of this type outstanding as of December 31, 2016. Revenues and cost of goods sold on these Phosphates sales are eliminated in the "Corporate and Other" category similar to all other intercompany transactions.

Financial information relating to our operations by geographic area is as follows:

	Years Ended December 31,
(in millions)	2016		2015		2014
Net sales(a):
Brazil	$	2,127.0	$	2,137.9	$	1,921.4
Canpotex(b)	604.5		1,052.8		994.9
Canada	498.2		681.9		591.8
India	296.7		382.2		331.9
China	171.2		205.2		191.1
Mexico	125.0		153.9		131.3
Australia	121.0		138.6		194.7
Paraguay	106.6		89.9		1.5
Colombia	104.9		147.5		145.0
Japan	82.7		111.6		131.5
Peru	68.3		72.7		101.8
Argentina	67.1		63.8		167.3
Chile	7.9		35.9		44.6
Other	104.0		335.7		263.0
Total international countries	4,485.1		5,609.6		5,211.8
United States	2,677.7		3,285.7		3,844.0
Consolidated	$	7,162.8	$	8,895.3	$	9,055.8

______________________________

(a) Revenues are attributed to countries based on location of customer.

(b) The export association of the Saskatchewan potash producers.

	December 31,
(in millions)	2016		2015
Long-lived assets:
Canada	$	5,070.3	$	4,246.5
Brazil	278.7		200.8
Other	77.9		35.9
Total international countries	5,426.9		4,483.2
United States	5,888.9		6,497.4
Consolidated	$	11,315.8	$	10,980.6

Excluded from the table above as of December 31, 2016 and 2015, are goodwill of $1,630.9 million and $1,595.3 million and deferred income taxes of $836.4 million and $691.9 million, respectively.

Net sales by product type for the years 2016, 2015 and 2014 are as follows:

	Years Ended December 31,
(in millions)	2016		2015		2014
Sales by product type:
Phosphate Crop Nutrients	$	3,137.5	$	4,018.6	$	4,096.2
Potash Crop Nutrients	1,879.8		2,593.9		2,828.8
Crop Nutrient Blends	1,403.7		1,404.1		1,292.9
Other(a)	741.8		878.7		837.9
	$	7,162.8	$	8,895.3	$	9,055.8

______________________________

(a) Includes sales of animal feed ingredients and industrial potash.