Agrium Reports Solid Third Quarter and Expects Strong Fall Crop Input Demand

CALGARY, ALBERTA--(Marketwired - Nov. 5, 2015) -

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today 2015 third quarter net earnings from continuing operations of $99-million ($0.72 diluted earnings per share), compared to $91-million ($0.63 diluted earnings per share) in the third quarter of 2014. The increased net earnings are due to higher sales volumes of Wholesale nutrients combined with lower production costs in the Wholesale business unit, while Retail's earnings were similar to the prior year, despite weaker market conditions.

Highlights:

• Third quarter adjusted net earnings of $97-million or $0.71 per share and $5.73 per share year to date in 2015 on the same basis (see page 2 for adjusted net earnings reconciliation)¹.
• Wholesale's results were boosted by nitrogen and potash performance, which saw higher volumes and lower costs, leading to an improvement in gross profit, despite lower nutrient prices. 
• Agrium achieved 94 percent ammonia capacity utilization in the third quarter, exceeding the 90 percent target rate.
• The Canpotex proving run is well underway at our Vanscoy potash facility and is progressing as expected.
• Retail EBITDA² in the U.S. and Australia were higher than the same quarter last year reflecting Operational Excellence initiatives. Total Retail EBITDA of $129-million for the quarter was in line with the prior year, despite the impact of drought conditions in the Canadian business. 
• Agrium has repurchased 5.6 million shares since the beginning of April under its current Normal Course Issuer Bid.
• 2015 annual guidance range has been narrowed to $7.10 to $7.40 diluted earnings per share (see page 3 for further details).

"Agrium's performance this quarter is another demonstration of the resilience of our business model. We focused on what we can control, improving our on-stream Wholesale performance and optimizing our distribution network and effectively managing costs in Retail, all of which helped drive a 9 percent increase in earnings over the same period last year despite prevailing market headwinds," commented Chuck Magro, Agrium's President and CEO. "We see strong crop input demand during the fall application season which is now in full swing and we are confident that our strategy and business structure can continue to deliver value to all our shareholders," added Mr. Magro.

1	Forecasted annual effective tax rate of 27.5 percent used for adjusted net earnings and per share calculations. These are non-IFRS measures which represent net earnings adjusted for certain income (expenses) that are considered to be non-operational in nature. We believe these measures provide meaningful comparison to the earnings of other companies by eliminating share-based payments expense (recovery), gains (losses) on foreign exchange, gains (losses) on non-qualifying derivative hedges and significant non-operating, non-recurring items. These should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS and may not be directly comparable to similar measures presented by other companies.
2	Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization. This is a non-IFRS measure. Refer to section "Additional IFRS and Non-IFRS Financial Measures" in the Management's Discussion and Analysis.

ADJUSTED NET EARNINGS RECONCILIATION
		Three months ended						Nine months ended
		September 30, 2015						September 30, 2015
(millions of U.S. dollars, except per share amounts)		Expense (income)		Net earnings impact (post-tax)		Per share1		Expense (income)		Net earnings impact (post-tax)		Per share1
				99		0.72				788		5.52
Adjustments:
	Share-based payments	(15	)	(11	)	(0.08	)	36		26		0.18
	Loss on derivatives net of foreign exchange	13		9		0.07		13		9		0.07
	Gain on sale of purchase for resale assets	-		-		-		(38	)	(28	)	(0.19	)
	Tax rate adjustment2	-		-		-		21		21		0.15
Adjusted net earnings3				97		0.71				816		5.73

1	Represents diluted per share information attributable to equity holders of Agrium.
2	Tax rate adjustment mainly relates to the increase in current and deferred taxes due to an increase in the Alberta corporate income tax rate effective July 1, 2015.
3	Forecasted annual effective tax rate of 27.5 percent used for adjusted net earnings and per share calculations.

MARKET OUTLOOK

For the third consecutive year, favorable growing conditions have contributed to above-trend global grain yields. Even in geographies which faced challenging conditions early in the growing season, such as parts of the U.S. Corn Belt and Western Canada, yield prospects have come in stronger than anticipated. Despite historically high production, the outlook for grains is more positive than it was a year ago and as of the end of October 2015, cash corn prices were more than 10 percent above 2014 levels, although oilseed prices are lower year-over-year. Excluding China, the global grain stocks to use ratio is projected to decline to the lowest level since 2012/13 and the U.S. corn supply/demand balance is projected to tighten. 

As a result of projected lower 2015/16 U.S. corn ending stocks, analysts project that U.S. corn area will increase in 2016. We expect normal North American crop nutrient application rates in the 2015/16 fertilizer year and expect that fall demand in 2015 will improve relative to 2014 levels as harvest progress is significantly ahead of last year, supporting a wider application window than the short 2014 season. In addition, we expect the overall planted acreage and crop mix to support increased crop nutrient demand.

The devaluation of most non-U.S. currencies over the past year has negatively impacted crop input demand and U.S. dollar prices. While growers in most market driven non-U.S. regions have realized a net benefit from lower local currency values due to improved local currency crop prices, crop nutrient prices in local currencies have increased significantly in some cases, which has been negative for demand. Currency devaluations have directly impacted crop nutrient demand and prices in Brazil and India. In Brazil, higher local prices, combined with lending constraints have negatively impacted import demand, however, downstream inventories have been drawn down to meet farm-level demand. In India, the devaluation of the rupee has pressured phosphate prices in order to be economical under the subsidy regime, while Indian buyers have delayed execution on some contracted potash volumes.

Globally, the downstream distribution network has been drawing on nutrient inventories to meet grower demand and purchasing on a just-in-time basis, which has led to relatively slow demand for all products. This has been the case in the U.S. urea market, as offshore imports of urea are estimated to be down 19 percent through the end of October 2015. The urea market has also been under pressure due to the combination of the devaluation of the Chinese yuan and lower anthracite coal prices, which have lowered the marginal cost of production. Chinese production levels in September in 2015 declined by 6 percent from August levels as a result of these market pressures and are expected to drop through the remainder of the year. Similarly for potash, strong shipments of potash in 2014 and the first half of 2015 allowed downstream inventories to increase. Buyers have been drawing upon these inventories in the second half of 2015, and prices have declined as spot sales volumes have declined. We expect pent-up demand to emerge late as fall applications occur and downstream inventories are drawn down. Similar to nitrogen and potash, phosphate demand has been slow in recent months, which has led to a reduction in phosphate production by some major producers.

UPDATED ANNUAL 2015 GUIDANCE

Based on our Market Outlook, Agrium expects to achieve annual diluted earnings per share of $7.10 to $7.40 in 2015 compared to our previous estimate of $7.00 to $7.50 per share. We have narrowed the guidance range but maintained a range width encompassing approximately $60-million of EBITDA variability to reflect the risk and opportunity associated with weather conditions and fall season length. We are assuming a normal fall season, recognizing there is always a risk that an early onset of inclement weather could bring an early close to the season. We have lowered the high-end and narrowed our anticipated Retail EBITDA range to $1.00-billion to $1.03-billion because of the impact of drought and lower crop prices on our Canadian operations in 2015.

Our annual nitrogen production target remains unchanged. We narrowed our potash production range to 1.95 million tonnes to 2.05 million tonnes for 2015.  

We have updated the range for our annual effective tax rate for 2015 to 27 percent to 28 percent to reflect the anticipated geographic split of our global income. Our estimates of the Canada and U.S. foreign exchange rates and NYMEX for 2015 have been narrowed from our previous estimates based on current market conditions.

This guidance and updated additional measures and related assumptions are summarized in the table below. Guidance excludes the impact of share-based payments expense (recovery), gains (losses) on foreign exchange and non-qualifying derivative hedges and significant non-operating, non-recurring items.

2015 ANNUAL GUIDANCE RANGE AND ASSUMPTIONS

			Annual
			Low		High
Diluted EPS			$7.10		$7.40
Guidance assumptions:
Wholesale:
	Production tonnes:
		Nitrogen (millions)1	3.5		3.7
		Potash (millions)	1.95		2.05
Retail:
	EBITDA (millions)		$1,000		$1,030
	Crop nutrient sales tonnes (millions)		9.7		10.2
Other:
	Finance costs (millions)		$255		$240
	Tax rate		28	%	27	%
	Sustaining capital expenditures (millions)		$500		$550
	Total capital expenditures (billions)		$1.2		$1.3
	Canada/U.S. foreign exchange rate		1.26		1.28
	NYMEX gas price ($/MMBtu)		$2.85		$2.70

1	Nitrogen production tonnes reduced to reflect disposal of West Sacramento upgrade facility.

MANAGEMENT'S DISCUSSION AND ANALYSIS

November 4, 2015

Unless otherwise noted, all financial information in this Management's Discussion and Analysis ("MD&A") is prepared using accounting policies in accordance with International Financial Reporting Standards ("IFRS") and is presented in accordance with International Accounting Standard 34 - Interim Financial Reporting. All comparisons of results for the third quarter of 2015 (three months ended September 30, 2015) and for the nine months ended September 30, 2015 are against results for the third quarter of 2014 (three months ended September 30, 2014) and nine months ended September 30, 2014. All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. The financial measures EBITDA, Adjusted EBITDA and cash cost of product manufactured used in this MD&A are not prescribed by IFRS, or in the case of EBIT, is an additional IFRS financial measure. Our method of calculation may not be directly comparable to that of other companies. We consider these non-IFRS and additional IFRS financial measures to provide useful information to both management and investors in measuring our financial performance and financial condition. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Please refer to the section entitled "Additional IFRS and Non-IFRS Financial Measures" of this MD&A for further details, including a reconciliation of such measures to their most directly comparable measure calculated in accordance with IFRS.

The following interim MD&A is as of November 4, 2015 and should be read in conjunction with the Consolidated Interim Financial Statements for the three and nine months ended September 30, 2015 (the "Consolidated Financial Statements"), and the annual MD&A and financial statements for the year ended December 31, 2014 included in our 2014 Annual Report to Shareholders. The Board of Directors carries out its responsibility for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee reviews, and prior to publication, approves this disclosure, pursuant to the authority delegated to it by the Board of Directors. No update is provided to the disclosure in our annual MD&A where there has been no material change from the discussion in our annual MD&A. In respect of Forward-Looking Statements, please refer to the section titled "Forward-Looking Statements" section of this MD&A.

2015 Third Quarter Operating Results

CONSOLIDATED NET EARNINGS

Agrium's 2015 third quarter net earnings from continuing operations were $99-million or $0.72 diluted earnings per share from continuing operations compared to net earnings from continuing operations of $91-million or $0.63 diluted earnings per share from continuing operations for the same quarter of 2014.

Financial Overview
	Three months ended September 30,								Nine months ended September 30,
(millions of U.S. dollars, except per share amounts and where noted)	2015		2014		Change		% Change		2015		2014		Change		% Change
Sales	2,524		2,920		(396	)	(14	)	12,388		13,337		(949	)	(7	)
Gross profit	696		665		31		5		2,988		2,820		168		6
Expenses	505		560		(55	)	(10	)	1,696		1,767		(71	)	(4	)
Earnings before finance costs and income taxes ("EBIT")	191		105		86		82		1,292		1,053		239		23
Net earnings from continuing operations	99		91		8		9		788		728		60		8
Net loss from discontinued operations	-		(41	)	41		(100	)	-		(59	)	59		(100	)
Net earnings	99		50		49		98		788		669		119		18
Diluted earnings per share from continuing operations	0.72		0.63		0.09		14		5.52		5.05		0.47		9
Diluted loss per share from discontinued operations	-		(0.28	)	0.28		(100	)	-		(0.41	)	0.41		(100	)
Diluted earnings per share	0.72		0.35		0.37		106		5.52		4.64		0.88		19
Effective tax rate (%)	27		(20	)	N/A		N/A		29		24		N/A		N/A

Sales and Gross Profit
		Three months ended September 30,						Nine months ended September 30,
(millions of U.S. dollars)		2015		2014		Change		2015		2014		Change
Sales
	Retail	2,011		2,295		(284	)	10,434		10,924		(490	)
	Wholesale	673		803		(130	)	2,714		3,076		(362	)
	Other	(160	)	(178	)	18		(760	)	(663	)	(97	)
		2,524		2,920		(396	)	12,388		13,337		(949	)
Gross profit
	Retail	494		542		(48	)	2,129		2,278		(149	)
	Wholesale	218		127		91		861		525		336
	Other	(16	)	(4	)	(12	)	(2	)	17		(19	)
		696		665		31		2,988		2,820		168

• Wholesale's sales volumes increased for all three crop nutrients for the third quarter and for nitrogen and phosphate for the first nine months of 2015 primarily as a result of higher operating rates. Realized selling prices for the third quarter decreased as a result of weaker market conditions but overall our average selling price increased for the first nine months of 2015. Product purchased for resale contributed to the decrease in sales as Agrium exited portions of this business.

• Wholesale's gross profit significantly increased due to lower natural gas input costs, manufacturing cost efficiencies and as a result of higher nitrogen, potash and phosphate volumes produced for the third quarter and first nine months of 2015 compared to the same periods last year.

• Retail's sales and gross profit decreased for the third quarter and first nine months of 2015 compared to the same periods last year primarily due to unfavorable weather conditions and competitive pricing pressure as a result of lower crop prices which impacted most of our product lines' sales and margins.

Expenses

• General and administrative expense decreased by $9-million (13 percent) for the third quarter and $27-million (12 percent) for the first nine months of 2015 compared to the same periods last year as a result of reduced payroll and office expense costs as we continue to realize reductions related to our Operational Excellence program.

Share-based Payments

• We had a share-based payment recovery of $15-million this quarter compared to a share-based payment expense of $10-million for the third quarter last year due primarily to the decrease in our share price.

• As a result of our higher average share price for the first nine months of 2015, our share-based payments expense increased by $11-million compared to the same period last year.

Depreciation and Amortization
		Three months ended September 30,
		2015								2014
(millions of U.S. dollars)		Cost of product sold		Selling		General and administrative		Total		Cost of product sold		Selling		General and administrative		Total
Retail		2		62		1		65		2		76		1		79
Wholesale
	Nitrogen	15								23
	Potash	16								19
	Phosphate	13								12
	Other1	2								3
		46		-		1		47		57		-		1		58
Other		-		-		3		3		-		-		6		6
Total		48		62		5		115		59		76		8		143

		Nine months ended September 30,
		2015								2014
		Cost of product sold		Selling		General and administrative		Total		Cost of product sold		Selling		General and administrative		Total
Retail		5		180		3		188		5		216		7		228
Wholesale
	Nitrogen	53								65
	Potash	43								50
	Phosphate	37								38
	Other1	10								15
		143		-		3		146		168		-		4		172
Other		-		-		11		11		-		-		12		12
Total		148		180		17		345		173		216		23		412

1	Includes product purchased for resale, ammonium sulfate, ESN and other products.

• Depreciation and amortization expense decreased for the third quarter and first nine months of 2015 due to the change in our method of depreciation from the straight-line basis to the units-of-production basis for our Vanscoy potash facility mining and milling assets at the beginning of 2015 and our reassessment of the useful lives of our property, plant and equipment in our Retail business unit in the fourth quarter of 2014 to reflect our expectations on the estimated future economic benefits of our property, plant and equipment.

Other Expenses (Income)

	Three months ended				Nine months ended
	September 30,				September 30,
(millions of U.S. dollars)	2015		2014		2015		2014
Loss (gain) on derivatives not designated as hedges, net of foreign exchange	13		21		13		(16	)
Interest income	(19	)	(31	)	(52	)	(61	)
Gain on sale of purchase for resale assets	-		-		(38	)	-
Environmental remediation and asset retirement obligations	6		1		15		21
Bad debt (recovery) expense	(4	)	-		28		30
Potash profit and capital tax	3		3		13		9
Other	9		13		22		26
	8		7		1		9

In the first nine months of 2015, other expenses decreased by $8-million due to the following:

• Gains of $33-million were recognized on natural gas derivatives in the first nine months of 2014 and were recorded directly to other expenses. 2015 did not have comparable results, as starting January 1, 2015, we began to designate all of our natural gas derivatives as qualifying hedges for accounting purposes and the related gains or losses are recorded as part of cost of product sold when we sell the related product while unrealized gains or losses are recorded in equity.

• We completed the sale of our Niota and Meredosia storage and distribution facilities in the first quarter of 2015 resulting in a gain on sale of purchase for resale assets of $38-million.

Effective Tax Rate

• The effective tax rate on continuing operations of 27 percent for the third quarter is higher than the tax rate of 18 percent in the comparative quarter in 2014 (excluding the effect of the recognition of a previously unrecognized tax benefit of $29-million) because of higher earnings in higher taxed jurisdictions.

• The effective tax rate of 29 percent for the first nine months of 2015 is higher than the rate of 27 percent for the same period last year (excluding the effect of the recognition of a previously unrecognized tax benefit) due to the increase in the Alberta provincial statutory tax rate.

BUSINESS SEGMENT PERFORMANCE

Retail
	Three months ended September 30,
(millions of U.S. dollars, except where noted)	2015		2014		Change
Sales	2,011		2,295		(284	)
Cost of product sold	1,517		1,753		(236	)
Gross profit	494		542		(48	)
EBITDA	129		130		(1	)
Selling expense as a percentage of sales (%)	22		20		2

• Retail sales and gross profit during the quarter were lower than the same period last year due to generally lower crop input prices, weaker non-U.S. currency exchange rates and dry weather conditions in our international and Canadian operations.

• Regionally, the U.S. EBITDA contribution was up approximately 4 percent over the same period last year. Australia reported a 40 percent increase in EBITDA, due mostly to a focused effort in reducing overall operating costs. Canada and South America EBITDA declined as poor growing conditions hampered demand for all crop inputs. 

• Retail selling expenses as a percentage of sales were marginally higher this quarter due to lower total sales. However, total selling expenses were down $33-million compared to the same period last year as a result of cost reductions primarily in our Canadian and Australian Retail operations.

	Three months ended September 30,
	Sales						Gross profit						Gross profit (%)
(millions of U.S. dollars, except where noted)	2015		2014		Change		2015		2014		Change		2015		2014
Crop nutrients	582		646		(64	)	113		142		(29	)	19		22
Crop protection products	1,040		1,132		(92	)	234		232		2		23		21
Seed	60		54		6		26		27		(1	)	43		50
Merchandise	166		256		(90	)	25		36		(11	)	15		14
Service and other	163		207		(44	)	96		105		(9	)	59		51

Crop nutrients

• Total crop nutrient sales were 10 percent lower compared to the same period last year due to a reduction in both average crop nutrient selling prices as well as lower sales volumes. 

• Total crop nutrient volumes were 4 percent lower this quarter across our Retail operations compared to the same period last year. Virtually all of the reduction was due to lower demand in our International Retail, due to dry conditions and lower planted wheat acreage. Despite lower corn and total seeded acreage this year in North America, sales tonnes in the region were relatively flat compared to the third quarter of 2014.

• Crop nutrient margins on a per tonne basis were lower across all regions. Margins from our international Retail declined by 28 percent over the same period last year. North American operations were 15 percent lower as a result of declining crop nutrient prices. 

Crop protection products

• Total crop protection sales were down 8 percent year-over-year with most of the reduction due to a combination of drought conditions impacting sales within our Canadian operations, lower demand for insecticides in the U.S. and lower prices for glyphosate products. International crop protection sales also experienced a decline related to dry conditions in those regions.

• Crop protection margins as a percentage of sales increased year-over-year, largely due to timing of rebates and new programs from suppliers in the U.S. market. Additionally, proprietary crop protection margins as a percentage of sales increased by 5 percent over the same period last year with the most significant increases in Canada and Australia.

Seed

• Seed sales were up 11 percent this quarter compared to the same period last year. The increase was due primarily to excessive moisture conditions in the Eastern U.S. during June, which pushed corn and soybean seeding into July of this year. The excessive moisture also prevented a significant amount of corn and soybean acreage in the region from being planted and much of this area was seeded with wheat, rye grass and other grass seed instead.
• Seed sales and margins were negatively impacted by competitive pressures across the seed industry, as well as lower sales volumes in Canada. Seed margins as a percentage of sales were 43 percent this quarter compared to 50 percent in 2014. Increased sales volumes of wheat, rye grass and other grass seed, which are lower margin products, were a key contributor to the lower margins.

Merchandise

• Merchandise sales decreased compared to the same period last year as a result of lower fuel prices and demand in Canada and lower animal health sales in Australia.

• Gross margin as a percentage of sales was higher this quarter due to a decrease in lower margin Canadian fuel sales and our ability to maintain a better cost position in the Australian business, which consistently has higher margin products.

Services and other

• Sales for services and other was down 21 percent this quarter, due mainly to the closure of our livestock export business in Australia. Application and other services sales, gross profit and gross margins were all higher in North America compared to the same period last year.

Wholesale

	Three months ended September 30,
(millions of U.S. dollars, except where noted)	2015		2014		Change
Sales	673		803		(130	)
Sales volumes (tonnes 000's)	1,667		1,856		(189	)
Cost of product sold	455		676		(221	)
Gross profit	218		127		91
Adjusted EBITDA	226		171		55
Expenses	44		27		17

• Wholesale sales this quarter were lower than the same period last year due to our decision to sell several non-core, lower-return purchase for resale facilities in 2015 related to our on-going asset portfolio review. Excluding this factor, Wholesale had higher product sales volumes this quarter largely offset by lower selling prices for all three crop nutrients. Adjusted EBITDA increased by $55-million over the prior year, as a result of higher utilization rates from our nitrogen and potash segments resulting in higher sales volumes and lower production costs per tonne.

	Three months ended September 30,
	Nitrogen						Potash						Phosphate
	2015		2014		Change		2015		2014		Change		2015		2014		Change
Gross profit (U.S. dollar millions)	130		77		53		42		2		40		31		31		-
Sales volume (tonnes 000's)	760		735		25		384		251		133		269		261		8
Selling price ($/tonne)	388		438		(50	)	279		313		(34	)	629		663		(34	)
Cost of product sold ($/tonne)	217		333		(116	)	171		304		(133	)	514		546		(32	)
Gross margin ($/tonne)	171		105		66		108		9		99		115		117		(2	)

Nitrogen

• Nitrogen gross profit increased by 69 percent over the same period last year, with results being driven by higher volumes and a significant reduction in cost of product sold due to improved capacity utilization rates and lower natural gas costs in the current period.

• Sales volumes increased by 3 percent over the same period last year, driven by stronger urea and ammonia sales. This increase was due to higher on-stream time at our production facilities and product availability compared to the same period last year.

• Cost of product sold per tonne was 35 percent lower than the same period last year. Operational improvements and higher on-stream time compared to the same period in the prior year decreased fixed costs per tonne, while lower natural gas costs reduced variable costs. The weaker Canadian dollar also reduced operating costs at our Canadian plants.

• Nitrogen margin per tonne was $171 per tonne, a 63 percent improvement over the same period last year, despite an 11 percent reduction in average selling prices.

Natural gas prices: North American indices and North American Agrium prices
	Three months ended    September 30,
(U.S. dollars per MMBtu)	2015		2014
Overall gas cost excluding realized derivative impact	$2.43		$4.01
Realized derivative impact	$(0.04	)	$(0.01	)
Overall gas cost	$2.39		$4.00
Average NYMEX	$2.77		$4.07
Average AECO	$2.16		$3.70

As of January 1, 2015, we have designated all of our natural gas derivatives as accounting hedges¹, with realized gains and losses now recorded to cost of product sold (which also includes transportation and administration costs).

1	In the prior year, unrealized and realized gains and losses on derivatives not designated as hedges were included in other expenses.

Potash

• Potash gross profit this quarter was $40-million higher than the same period last year, due to the turnaround to tie-in the Vanscoy capacity expansion that started in the third quarter of 2014 leading to lower sales and margin in the prior year.

• Sales volumes were 53 percent higher compared to the same period in the prior year. Production volumes this quarter were 560,000 tonnes.

• Realized sales prices were lower than the same period last year due to competitive pricing pressure in both domestic and international markets.

• Cost of product sold was reduced as a result of cost efficiencies associated with the continuing ramp-up of the Vanscoy expansion, as well as weakening of the Canadian dollar. As a result, cash cost of product manufactured continues to improve and is $89 per tonne in the current quarter compared to $110 per tonne in the second quarter of 2015.

Phosphate

• Phosphate gross profit was unchanged from the prior year.

• Sales volumes were slightly higher than last year, while reduced selling prices were largely offset by lower cost of production. As a result, phosphate margins were only 2 percent lower than the same quarter last year.

Wholesale Other

Wholesale Other: gross profit breakdown
	Three months ended September 30,
(millions of U.S. dollars)	2015		2014		Change
Product purchased for resale	2		6		(4	)
Ammonium sulfate	10		8		2
Environmentally Smart Nitrogen ("ESN®")	6		4		2
Other	(3	)	(1	)	(2	)
	15		17		(2	)

• Gross profit for Wholesale's Other product category decreased this quarter primarily due to lower sales volumes and gross profit for the product purchased for resale business, as these operations were significantly scaled back earlier in 2015 as part of our portfolio review.

• ESN^® gross profit increased this quarter due to slightly higher sales volumes and lower cost of product sold, which was partly offset by lower selling prices.

Wholesale Earnings from Equity Investees

• Agrium's share of earnings from equity investees saw a loss of $10-million during the quarter. MOPCO experienced gas curtailments throughout the quarter which restricted nitrogen production. Profertil's sales volumes and costs were impacted by an extended outage during the current quarter.

Other

EBITDA for our Other non-operating business unit for the third quarter of 2015 had a net expense of $44-million, compared to a net expense of $40-million for the third quarter of 2014. The variance was due to the following:

• A $12-million higher gross profit elimination expense as a result of higher inter-segment inventory held at the end of the third quarter of 2015;

• A $22-million increase in other expenses primarily due to higher provisions for environmental remediation and asset retirement obligations and an interest recovery received in 2014; and

• A $15-million share-based payment recovery for the third quarter of 2015 compared to a $10-million share-based payment expense for the same period last year due to a decrease in Agrium's share price in 2015.

FINANCIAL CONDITION

The following are changes to working capital on our Consolidated Balance Sheets for the nine-month period ended September 30, 2015 compared to December 31, 2014.

(millions of U.S. dollars, except where noted)		September 30, 2015		December 31, 2014		$ Change		% Change			Explanation of the change in balance
Current assets
	Cash and cash equivalents	753		848		(95	)	(11	%)		See discussion under the section "Liquidity and Capital Resources".
	Accounts receivable	2,927		2,075		852		41	%		Seasonal sales activity for Retail resulted in higher Retail trade and vendor rebates receivable.
	Income taxes receivable	12		138		(126	)	(91	%)		The 2015 tax provision exceeded tax installment payments made net of current period tax refunds.
	Inventories	2,759		3,505		(746	)	(21	%)		Inventory drawdown due to seasonal sales activity.
	Prepaid expenses and deposits	165		710		(545	)	(77	%)		Drawdown of prepaid inventory where Retail typically prepays for product at year end and takes possession of inventory throughout the year.
	Other current assets	148		122		26		21	%		-
Current liabilities
	Short-term debt	1,782		1,527		255		17	%		New drawings for cash needs, partially offset by using the proceeds from the issuance of debentures to repay commercial paper and credit facilities.
	Accounts payable	2,923		4,197		(1,274	)	(30	%)		Drawdown in customer prepayments during the spring application season, reductions in trade payables as the third quarter is typically a low point for product purchasing, and reductions in accruals related to Wholesale capital expansion projects in 2015.
	Income taxes payable	59		5		54		1,080	%		The 2015 tax provision exceeded tax installment payments made in Canada.
	Current portion of long-term debt	11		11		-		0	%		-
	Current portion of other provisions	82		113		(31	)	(27	%)		-
Working capital		1,907		1,545		362		23	%

LIQUIDITY AND CAPITAL RESOURCES

Summary of Consolidated Statements of Cash Flows

Below is a summary of our cash provided by or used in operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flows:

	Nine months ended September 30,
(millions of U.S. dollars)	2015		2014		Change
Cash provided by operating activities	570		332		238
Cash used in investing activities	(1,182	)	(1,577	)	395
Cash provided by financing activities	484		771		(287	)
Effect of exchange rate changes on cash and cash equivalents	33		(37	)	70
Decrease in cash and cash equivalents from continuing operations	(95	)	(511	)	416
Cash and cash equivalents used in discontinued operations	-		(16	)	16

Cash provided by operating activities - Drivers behind the $238-million increase
Source of cash	•	$202-million change related to taxes paid of $81-million in the first nine months of 2015 compared to taxes paid of $283-million in the same period in 2014 resulting from an increase in tax refunds in Canada.
Cash used in investing activities - Drivers behind the $395-million decrease in use
Use of cash	•	Lower capital expenditures in the first nine months of 2015 due to the completion of the tie-in of our Vanscoy potash mine expansion at the end of 2014.
Cash provided by financing activities - Drivers behind the $287-million decrease
Source of cash	•	Received $1-billion proceeds from issuance of long-term debt in the first nine months of 2015. Lower issuance of our commercial paper in the first nine months of 2015 as we received proceeds from our long-term debt.
Use of cash	•	Repurchased common shares for $559-million in the first nine months of 2015; no similar activity in the same period in 2014.

Capital Spending and Expenditures1
		Three months ended				Nine months ended
		September 30,				September 30,
(millions of U.S. dollars)		2015		2014		2015		2014
Retail
	Sustaining	11		25		103		129
	Investing	8		9		25		29
		19		34		128		158
	Acquisitions2	1		129		85		147
		20		163		213		305
Wholesale
	Sustaining	72		96		199		292
	Investing	77		381		578		1,061
		149		477		777		1,353
Corporate & Other
	Sustaining	1		2		3		2
	Investing	1		2		2		4
		2		4		5		6
Total
	Sustaining	84		123		305		423
	Investing	86		392		605		1,094
		170		515		910		1,517
	Acquisitions2	1		129		85		147
		171		644		995		1,664

1	Excludes capitalized borrowing costs.
2	Represents business acquisitions and includes acquired working capital; property, plant and equipment; intangibles; goodwill; and, investments in associates and joint ventures.

• Our investing capital expenditures decreased in the first nine months of 2015 compared to the first nine months of 2014 due to the completion of the tie-in of our Vanscoy potash facility expansion in the fourth quarter of 2014, partially offset by expenditures relating to the Borger nitrogen expansion project.

• Our sustaining capital expenditures decreased in the first nine months of 2015 as we had less turnarounds compared to the same period last year.

• We expect Agrium's capital expenditures in the fourth quarter of 2015 to approximate $200--million to $300-million in 2015. We anticipate that we will be able to finance the announced projects through a combination of cash provided from operating activities and existing credit facilities.

Short-term Debt

• Our short-term debt of $1.8-billion at September 30, 2015 is outlined in note 5 of our Summarized Notes to the Consolidated Financial Statements.

• Our short-term debt increased by $1.1-billion during the three months ended September 30, 2015, which in turn contributed to a decrease in our unutilized short-term financing capacity to $1.1-billion at September 30, 2015.

Capital Management

• Our revolving credit facilities require that we maintain specific interest coverage and debt-to-capital ratios, as well as other non-financial covenants as defined in our credit agreements. We were in compliance with all covenants at September 30, 2015.

NORMAL COURSE ISSUER BID

In January 2015, the Toronto Stock Exchange ("TSX") accepted Agrium's notice of intention to make a normal course issuer bid ("NCIB") whereby Agrium may purchase up to 7,185,866 common shares on the TSX and New York Stock Exchange during the period from January 26, 2015 to January 25, 2016. During the nine months ended September 30, 2015, we purchased 5,574,331 shares at an average share price of $100.25 for total consideration of $559-million. Shareholders can obtain a free copy of the NCIB notice submitted to the TSX from Agrium upon request.

OUTSTANDING SHARE DATA

Agrium had 138,169,000 outstanding shares at October 31, 2015. At that date, under our stock option plans, shares expected to be issued for options outstanding were negligible.

SELECTED QUARTERLY INFORMATION
(millions of U.S. dollars, except per share amounts)		2015 Q3		2015 Q2		2015 Q1		2014 Q4		2014 Q3		2014 Q2		2014 Q1		2013 Q4
Sales		2,524		6,992		2,872		2,705		2,920		7,338		3,079		2,867
Gross profit		696		1,708		584		732		665		1,599		556		740
Net earnings from continuing operations		99		675		14		70		91		625		12		110
Net loss from discontinued operations		-		-		-		(19	)	(41	)	(9	)	(9	)	(11	)
Net earnings		99		675		14		51		50		616		3		99
Earnings per share from continuing operations attributable to equity holders of Agrium:
	Basic and diluted	0.72		4.71		0.08		0.46		0.63		4.34		0.08		0.74
Loss per share from discontinued operations attributable to equity holders of Agrium:
	Basic and diluted	-		-		-		(0.13	)	(0.28	)	(0.06	)	(0.06	)	(0.08	)
Earnings per share attributable to equity holders of Agrium:
	Basic and diluted	0.72		4.71		0.08		0.33		0.35		4.28		0.02		0.66

The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter comparisons. Crop input sales are primarily concentrated in the spring and fall crop input application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections from accounts receivables generally occur after the application season is complete and our customer prepayments are mostly concentrated in December and January.

ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Certain financial measures in this MD&A are not prescribed by IFRS. We consider these financial measures discussed herein to provide useful information to both management and investors in measuring our financial performance and financial condition.

In general, an additional IFRS financial measure is a measure relevant to understanding a company's financial performance that is not a minimum financial statement measure mandated by IFRS. A non-IFRS financial measure generally either excludes or includes amounts not excluded or included in the most directly comparable measure calculated and presented in accordance with IFRS. Non-IFRS financial measures are not recognized measures under IFRS and our method of calculation may not be directly comparable to that of other companies. These non-IFRS measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS.
The following table outlines our additional IFRS financial measure, its definition and why management uses such measure.

Additional IFRS financial measure		Definition		Why We Use the Measure and Why it is Useful to Investors
EBIT		Earnings (loss) from continuing operations before finance costs and income taxes.		Provides management and investors with information for comparison of our operating results to the operating results of other companies. This measure eliminates the impact of finance and tax structure variables that exist between entities.

The following table outlines our non-IFRS financial measures, their definitions and why management uses each measure.

Non-IFRS financial measures		Definition		Why We Use the Measure and Why it is Useful to Investors
EBITDA		Earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization.		Refer to EBIT. EBITDA is also frequently used by investors and analysts for valuation purposes when multiplied by a factor to estimate the enterprise value of a company. EBITDA is also a component in the determination of annual incentive compensation for certain management employees, and in calculation of certain of our debt covenants.
Adjusted EBITDA		EBITDA before finance costs, income taxes, depreciation and amortization of joint ventures.		Useful in evaluating our business performance by including our proportionate share of joint ventures in operating results.
Cash cost of product manufactured ("COPM")		All fixed and variable costs are accumulated in cost of product manufactured ("COPM"). Cash COPM excludes depreciation and amortization expense. Fixed costs per tonne will fluctuate as production tonnage fluctuates. Fixed costs will remain constant whether or not tonnes are produced. Variable costs per tonne remain constant as production tonnage fluctuates. Variable costs fluctuate as production tonnage fluctuates. Direct freight is a transportation cost to move the product from an Agrium location to the point of sale. It is not a component of COPM.		Enables investors to better understand the performance of our manufacturing operations in comparison to other crop nutrient producers. When COPM costs are divided by the production tonnes for the period, the result is actual COPM per tonne, which is compared to the standard COPM per tonne - a calculation of fixed and variable costs for a standard or typical period of production. The standard COPM per tonne is multiplied by the production tonnes for the period, and the resulting dollar amount is transferred to inventory. Any remaining costs are recorded directly to cost of product sold as production volume or cost efficiency variances. There is no directly comparable IFRS measure for cash cost of product manufactured.

RECONCILIATIONS OF ADDITIONAL IFRS AND NON-IFRS FINANCIAL MEASURES

Adjusted EBITDA and EBITDA to EBIT
		Three months ended								Three months ended
		September 30, 2015								September 30, 2014
(millions of U.S. dollars)		Retail		Wholesale		Other		Consolidated		Retail		Wholesale		Other		Consolidated
Adjusted EBITDA		129		226		(44	)	311		130		171		(40	)	261
Equity accounted joint ventures:
	Finance costs and income taxes	-		1		-		1		-		8		-		8
	Depreciation and amortization	-		4		-		4		-		5		-		5
EBITDA		129		221		(44	)	306		130		158		(40	)	248
Depreciation and amortization		65		47		3		115		79		58		6		143
EBIT		64		174		(47	)	191		51		100		(46	)	105

		Nine months ended								Nine months ended
		September 30, 2015								September 30, 2014
(millions of U.S. dollars)		Retail		Wholesale		Other		Consolidated		Retail		Wholesale		Other		Consolidated
Adjusted EBITDA		834		950		(129	)	1,655		938		671		(114	)	1,495
Equity accounted joint ventures:
	Finance costs and income taxes	-		6		-		6		-		20		-		20
	Depreciation and amortization	-		12		-		12		-		10		-		10
EBITDA		834		932		(129	)	1,637		938		641		(114	)	1,465
Depreciation and amortization		188		146		11		345		228		172		12		412
EBIT		646		786		(140	)	1,292		710		469		(126	)	1,053

CRITICAL ACCOUNTING ESTIMATES

We prepare our financial statements in accordance with IFRS, which requires us to make judgments, assumptions and estimates in applying accounting policies. For further information on the Company's critical accounting estimates, refer to the section "Critical Accounting Estimates" in our 2014 annual MD&A, which is contained in our 2014 Annual Report. Since the date of our 2014 annual MD&A, there have not been any material changes to our critical accounting estimates.

CHANGES IN ACCOUNTING POLICIES

The accounting policies applied in our Consolidated Financial Statements for the three and nine months ended September 30, 2015 are the same as those applied in our audited annual financial statements in our 2014 Annual Report, with the exception of changes in accounting estimates described in note 9 of our Summarized Notes to the Consolidated Financial Statements for the three months ended March 31, 2015.

BUSINESS RISKS

The information presented in the "Enterprise Risk Management" section on pages 64 - 68 in our 2014 Annual Report and under the heading "Risk Factors" on pages 22 - 31 in our 2014 Annual Information Form has not changed materially since December 31, 2014.

CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting during the nine months ended September 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PUBLIC SECURITIES FILINGS

Additional information about our Company, including our 2014 Annual Information Form is filed with the Canadian securities regulatory authorities through SEDAR at www.sedar.com and with the U.S. securities regulatory authorities through EDGAR at www.sec.gov.

Forward-Looking Statements

Certain statements and other information included in this document constitute "forward-looking information" and/or "financial outlook" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this document other than those relating to historical information or current conditions are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: 2015 annual guidance, expectations regarding nitrogen and potash production volumes; capital spending expectations for the remainder of 2015; expectations regarding 2015 production volumes at our Vanscoy potash facility; and our market outlook for the remainder of 2015 and 2016, including anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, crop mix, prices and the impact of currency fluctuations and import and export volumes. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these forward-looking statements. The purpose of the outlook provided herein is to assist readers in understanding our expected and targeted financial and operating results, and this information may not be appropriate for other purposes.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions referred to below and elsewhere in this document. Although Agrium believes that these assumptions are reasonable, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. The additional key assumptions that have been made include, among other things assumptions with respect to Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions and that we will be able to implement our standards, controls, procedures and policies at any acquired businesses to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by Agrium, with respect to prices, margins, product availability and supplier agreements; the completion of our expansion projects on schedule, as planned and on budget; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for the remainder of 2015 and 2016; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and negotiate acceptable terms; our ability to maintain our investment grade rating and achieve our performance targets; and our receipt, on time, of all necessary permits, utilities and project approvals with respect to our expansion projects and that we will have the resources necessary to meet the projects' approach. Also refer to the discussion under the heading "Key Assumptions and Risks in Respect of Forward-Looking Statements" in our 2014 annual MD&A, with respect to further material assumptions associated with our forward-looking statements.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general economic, market and business conditions; weather conditions, including impacts from regional flooding and/or drought conditions; crop yield and prices; the supply and demand and price levels for our major products may vary from what we currently anticipate; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof, and political risks, including civil unrest, actions by armed groups or conflict, regional natural gas supply restrictions, as well as counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; the risk that work on the MOPCO nitrogen facility expansion in Egypt may be interrupted again and may not be completed on the timelines currently anticipated or at all; the risk of additional capital expenditure cost escalation or delays in respect of our Borger nitrogen expansion project and the ramp-up of production following the tie-in of our Vanscoy potash expansion project; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the U.S. including those disclosed under the heading "Risk Factors" in our Annual Information Form for the year ended December 31, 2014 and under the headings "Enterprise Risk Management" and "Key Assumptions and Risks in respect of Forward-Looking Statements" in our 2014 annual MD&A.

The purpose of our expected diluted earnings per share guidance range is to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this document as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

OTHER

Agrium Inc. is a major producer and distributor of agricultural products and services in North America, South America, Australia and Egypt through its agricultural retail-distribution and wholesale nutrient businesses. Agrium supplies growers with key products and services such as crop nutrients, crop protection, seed, and agronomic and application services, thereby helping to meet the ever growing global demand for food and fiber. Agrium produces nitrogen, potash and phosphate fertilizers, with a combined wholesale nutrient capacity of over nine million tonnes and with competitive advantages across all product lines. Agrium retail-distribution has an unmatched network of over 1,300 facilities and over 3,000 crop consultants. We partner with over half a million grower customers globally to help them increase their yields and returns on more than 50 different crops. With a focus on sustainability, the company strives to improve the communities in which it operates through safety, education, environmental improvement and new technologies such as the development of precision agriculture and controlled release nutrient products. Agrium is focused on driving operational excellence across our businesses, pursuing value-enhancing growth opportunities and returning capital to shareholders. For more information visit: www.agrium.com.

A WEBSITE SIMULCAST of the 2015 3^rd Quarter Conference Call will be available in a listen-only mode beginning Thursday, November 5^th, 2015 at 9:30 a.m. MST (11:30 a.m. EST). Please visit the following website: www.agrium.com.

AGRIUM INC.
Consolidated Statements of Operations
(Millions of U.S. dollars, except per share amounts)
(Unaudited)
		Three months ended				Nine months ended
		September 30,				September 30,
		2015		2014		2015		2014
Sales		2,524		2,920		12,388		13,337
Cost of product sold		1,828		2,255		9,400		10,517
Gross profit		696		665		2,988		2,820
Expenses
	Selling	441		480		1,456		1,533
	General and administrative	61		70		194		221
	Share-based payments	(15	)	10		36		25
	Loss (earnings) from associates and joint ventures	10		(7	)	9		(21	)
	Other expenses (note 3)	8		7		1		9
Earnings before finance costs and income taxes		191		105		1,292		1,053
	Finance costs related to long-term debt	41		15		128		43
	Other finance costs	14		14		51		49
Earnings before income taxes		136		76		1,113		961
	Income taxes	37		(15	)	325		233
Net earnings from continuing operations		99		91		788		728
Net loss from discontinued operations		-		(41	)	-		(59	)
Net earnings		99		50		788		669
Attributable to:
	Equity holders of Agrium	101		50		787		667
	Non-controlling interest	(2	)	-		1		2
Net earnings		99		50		788		669
Earnings per share attributable to equity holders of Agrium (note 4)
	Basic and diluted earnings per share from continuing operations	0.72		0.63		5.52		5.05
	Basic and diluted loss per share from discontinued operations	-		(0.28	)	-		(0.41	)
	Basic and diluted earnings per share	0.72		0.35		5.52		4.64
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Comprehensive Income
(Millions of U.S. dollars)
(Unaudited)
					Three months ended				Nine months ended
					September 30,				September 30,
					2015		2014		2015		2014
Net earnings					99		50		788		669
	Other comprehensive loss
		Items that are or may be reclassified to earnings
			Cash flow hedges
				Effective portion of changes in fair value	(10	)	(3	)	(30	)	(7	)
				Deferred income taxes on changes in fair value	3		1		8		2
			Share of comprehensive loss of associates and joint ventures		(2	)	(4	)	(7	)	(2	)
			Foreign currency translation
				Losses	(294	)	(195	)	(532	)	(199	)
				Reclassifications to earnings	-		-		1		-
					(303	)	(201	)	(560	)	(206	)
		Items that will never be reclassified to earnings
			Post-employment benefits
				Actuarial losses	-		-		-		(20	)
				Deferred income taxes	-		-		1		6
					-		-		1		(14	)
	Other comprehensive loss				(303	)	(201	)	(559	)	(220	)
Comprehensive (loss) income					(204	)	(151	)	229		449
Attributable to:
	Equity holders of Agrium				(205	)	(151	)	226		447
	Non-controlling interest				1		-		3		2
Comprehensive (loss) income					(204	)	(151	)	229		449
See accompanying notes.

AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
(Unaudited)
				September 30,				December 31,
				2015		2014		2014
Assets
	Current assets
		Cash and cash equivalents		753		274		848
		Accounts receivable		2,927		2,847		2,075
		Income taxes receivable		12		25		138
		Inventories		2,759		3,086		3,505
		Prepaid expenses and deposits		165		236		710
		Other current assets		148		179		122
				6,764		6,647		7,398
	Property, plant and equipment (note 7)			6,274		6,021		6,272
	Intangibles			635		730		695
	Goodwill			1,995		1,982		2,014
	Investments in associates and joint ventures			574		622		576
	Other assets			65		90		78
	Deferred income tax assets			55		79		75
				16,362		16,171		17,108
Liabilities and shareholders' equity
	Current liabilities
		Short-term debt (note 5)		1,782		1,855		1,527
		Accounts payable		2,923		3,214		4,197
		Income taxes payable		59		2		5
		Current portion of long-term debt		11		26		11
		Current portion of other provisions		82		106		113
				4,857		5,203		5,853
	Long-term debt (note 5)			4,517		3,069		3,559
	Post-employment benefits			139		145		151
	Other provisions			342		415		367
	Other liabilities			81		40		69
	Deferred income tax liabilities			420		378		422
				10,356		9,250		10,421
	Shareholders' equity
		Share capital		1,756		1,821		1,821
		Retained earnings		5,444		5,575		5,502
		Accumulated other comprehensive loss		(1,198	)	(477	)	(643	)
		Equity holders of Agrium		6,002		6,919		6,680
		Non-controlling interest		4		2		7
		Total equity		6,006		6,921		6,687
				16,362		16,171		17,108
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
			Three months ended				Nine months ended
			September 30,				September 30,
			2015		2014		2015		2014
Operating
	Net earnings from continuing operations		99		91		788		728
	Adjustments for
		Depreciation and amortization	115		143		345		412
		Loss (earnings) from associates and joint ventures	10		(7	)	9		(21	)
		Share-based payments	(15	)	10		36		25
		Unrealized (gain) loss on derivative financial instruments	(6	)	(41	)	7		(46	)
		Unrealized foreign exchange (gain) loss	(13	)	67		(23	)	48
		Interest income	(19	)	(31	)	(52	)	(61	)
		Finance costs	55		29		179		92
		Income taxes	37		(15	)	325		233
		Other	(3	)	(12	)	(22	)	15
	Interest received		21		31		54		62
	Interest paid		(71	)	(15	)	(161	)	(68	)
	Income taxes paid		(92	)	(215	)	(81	)	(283	)
	Dividends from associates and joint ventures		-		41		2		48
	Net changes in non-cash working capital		(344	)	(542	)	(836	)	(852	)
Cash (used in) provided by operating activities			(226	)	(466	)	570		332
Investing
	Acquisitions, net of cash acquired		(1	)	(129	)	(85	)	(147	)
	Proceeds from sale of discontinued operations		-		94		-		94
	Capital expenditures		(170	)	(515	)	(910	)	(1,517	)
	Capitalized borrowing costs		(14	)	(30	)	(37	)	(83	)
	Purchase of investments		(25	)	(32	)	(110	)	(97	)
	Proceeds from sale of investments		20		24		65		68
	Proceeds from sale of property, plant and equipment		23		-		77		-
	Other		(4	)	(12	)	7		(15	)
	Net changes in non-cash working capital		(97	)	59		(189	)	120
Cash used in investing activities			(268	)	(541	)	(1,182	)	(1,577	)
Financing
	Short-term debt		1,156		682		418		1,126
	Long-term debt issued		-		12		1,000		12
	Transaction costs on long-term debt		-		-		(14	)	-
	Repayment of long-term debt		(2	)	(30	)	(17	)	(45	)
	Dividends paid		(122	)	(107	)	(345	)	(323	)
	Shares issued		-		-		1		1
	Shares repurchased		(459	)	-		(559	)	-
Cash provided by financing activities			573		557		484		771
Effect of exchange rate changes on cash and cash equivalents			27		(18	)	33		(37	)
Increase (decrease) in cash and cash equivalents from continuing operations			106		(468	)	(95	)	(511	)
Cash and cash equivalents used in discontinued operations			-		(17	)	-		(16	)
Cash and cash equivalents - beginning of period			647		759		848		801
Cash and cash equivalents - end of period			753		274		753		274
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Shareholders' Equity
(Millions of U.S. dollars, except share data)
(Unaudited)

										Other comprehensive income (loss)
				Millions of common shares		Share capital		Retained earnings		Cash flow hedges		Comprehensive loss of associates and joint ventures		Available for sale financial instruments		Foreign currency translation		Total			Equity holders of Agrium		Non- controlling interest		Total equity
December 31, 2013				144		1,820		5,253		-		(7	)	(8	)	(264	)	(279	)		6,794		2		6,796
	Net earnings			-		-		667		-		-		-		-		-			667		2		669
	Other comprehensive income (loss), net of tax
		Post-employment benefits		-		-		(14	)	-		-		-		-		-			(14	)	-		(14	)
		Other		-		-		-		(5	)	(2	)	-		(199	)	(206	)		(206	)	-		(206	)
	Comprehensive income (loss), net of tax			-		-		653		(5	)	(2	)	-		(199	)	(206	)		447		2		449
	Dividends			-		-		(323	)	-		-		-		-		-			(323	)	-		(323	)
	Non-controlling interest transactions			-		-		-		-		-		-		-		-			-		(2	)	(2	)
	Share-based payment transactions			-		1		-		-		-		-		-		-			1		-		1
	Impact of adopting IFRS 9 at January 1, 2014			-		-		(8	)	-		-		8		-		8			-		-		-
September 30, 2014				144		1,821		5,575		(5	)	(9	)	-		(463	)	(477	)		6,919		2		6,921
December 31, 2014				144		1,821		5,502		(27	)	(11	)	-		(605	)	(643	)		6,680		7		6,687
	Net earnings			-		-		787		-		-		-		-		-			787		1		788
	Other comprehensive income (loss), net of tax
		Post-employment benefits		-		-		1		-		-		-		-		-			1		-		1
		Other		-		-		-		(22	)	(7	)	-		(533	)	(562	)		(562	)	2		(560	)
	Comprehensive income (loss), net of tax			-		-		788		(22	)	(7	)	-		(533	)	(562	)		226		3		229
	Dividends			-		-		(357	)	-		-		-		-		-			(357	)	-		(357	)
	Non-controlling interest transactions			-		-		-		-		-		-		-		-			-		(6	)	(6	)
	Shares repurchased			(6	)	(70	)	(489	)	-		-		-		-		-			(559	)	-		(559	)
	Share-based payment transactions			-		5		-		-		-		-		-		-			5		-		5
	Reclassification of cash flow hedges			-		-		-		7		-		-		-		7			7		-		7
September 30, 2015				138		1,756		5,444		(42	)	(18	)	-		(1,138	)	(1,198	)		6,002		4		6,006
See accompanying notes.

AGRIUM INC.

Summarized Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2015

(Millions of U.S. dollars, unless otherwise stated)

(Unaudited)

1. Corporate Information

Corporate information

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.

Agrium operates two business units:

• 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; and
  • International, including Australia and South America.
• Wholesale: Operates in North and South America and Europe producing, marketing and distributing 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; and
  • Other: Marketing nutrient-based products from other suppliers in North and South America and Europe, and producing blended crop nutrients and ESN^® (Environmentally Smart Nitrogen) polymer-coated nitrogen crop nutrients.

Additional information on our operating segments is included in note 2.

Seasonality in our business results from increased demand for our products during planting seasons. Sales are generally higher in spring and fall.

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on November 4, 2015. We prepared these interim financial statements in accordance with International Accounting Standard 34 Interim Financial Reporting. These statements do not include all information and disclosures normally provided in annual financial statements and should be read in conjunction with our audited annual financial statements and related notes contained in our 2014 Annual Report, available at www.agrium.com.

The accounting policies applied in these interim financial statements are the same as those applied in our audited annual financial statements in our 2014 Annual Report, with the exception of the accounting changes described in note 9 to our interim financial statements for the three months ended March 31, 2015.

2. Operating Segments

Segment information by business unit
			Three months ended September 30,
			2015								2014
			Retail		Wholesale		Other (1	)	Total		Retail		Wholesale		Other (1	)	Total
Sales		- external	2,006		518		-		2,524		2,294		626		-		2,920
		- inter-segment	5		155		(160	)	-		1		177		(178	)	-
Total sales			2,011		673		(160	)	2,524		2,295		803		(178	)	2,920
Cost of product sold			1,517		455		(144	)	1,828		1,753		676		(174	)	2,255
Gross profit			494		218		(16	)	696		542		127		(4	)	665
Gross profit (%)			25		32				28		24		16				23
Expenses
	Selling		437		9		(5	)	441		470		13		(3	)	480
	General and administrative		25		11		25		61		31		10		29		70
	Share-based payments		-		-		(15	)	(15	)	-		-		10		10
	Loss (earnings) from associates and joint ventures		1		9		-		10		(2	)	(7	)	2		(7	)
	Other (income) expenses		(33	)	15		26		8		(8	)	11		4		7
Earnings (loss) before finance costs and income taxes			64		174		(47	)	191		51		100		(46	)	105
	Finance costs		-		-		55		55		-		-		29		29
Earnings (loss) before income taxes			64		174		(102	)	136		51		100		(75	)	76
	Depreciation and amortization		65		47		3		115		79		58		6		143
	Finance costs		-		-		55		55		-		-		29		29
EBITDA (2)			129		221		(44	)	306		130		158		(40	)	248
Share of joint ventures
	Finance costs and income taxes		-		1		-		1		-		8		-		8
	Depreciation and amortization		-		4		-		4		-		5		-		5
Adjusted EBITDA			129		226		(44	)	311		130		171		(40	)	261

(1)	Includes inter-segment eliminations.
(2)	EBITDA is earnings (loss) from continuing operations before finance costs, income taxes, depreciation and amortization.

Segment information by business unit
			Nine months ended September 30,
			2015								2014
			Retail		Wholesale		Other (1	)	Total		Retail		Wholesale		Other (1	)	Total
Sales		- external	10,410		1,978		-		12,388		10,913		2,424		-		13,337
		- inter-segment	24		736		(760	)	-		11		652		(663	)	-
Total sales			10,434		2,714		(760	)	12,388		10,924		3,076		(663	)	13,337
Cost of product sold			8,305		1,853		(758	)	9,400		8,646		2,551		(680	)	10,517
Gross profit			2,129		861		(2	)	2,988		2,278		525		17		2,820
Gross profit (%)			20		32				24		21		17				21
Expenses
	Selling		1,440		29		(13	)	1,456		1,509		34		(10	)	1,533
	General and administrative		83		27		84		194		94		33		94		221
	Share-based payments		-		-		36		36		-		-		25		25
	(Earnings) loss from associates and joint ventures		(3	)	12		-		9		(7	)	(17	)	3		(21	)
	Other (income) expenses		(37	)	7		31		1		(28	)	6		31		9
Earnings (loss) before finance costs and income taxes			646		786		(140	)	1,292		710		469		(126	)	1,053
	Finance costs		-		-		179		179		-		-		92		92
Earnings (loss) before income taxes			646		786		(319	)	1,113		710		469		(218	)	961
	Depreciation and amortization		188		146		11		345		228		172		12		412
	Finance costs		-		-		179		179		-		-		92		92
EBITDA			834		932		(129	)	1,637		938		641		(114	)	1,465
Share of joint ventures
	Finance costs and income taxes		-		6		-		6		-		20		-		20
	Depreciation and amortization		-		12		-		12		-		10		-		10
Adjusted EBITDA			834		950		(129)		1,655		938		671		(114)		1,495

(1)	Includes inter-segment eliminations.

Segment information - Retail
			Three months ended September 30,
			2015						2014
			North America		International		Retail		North America		International		Retail
Sales		- external	1,582		424		2,006		1,743		551		2,294
		- inter-segment	5		-		5		1		-		1
Total sales			1,587		424		2,011		1,744		551		2,295
Cost of product sold			1,184		333		1,517		1,321		432		1,753
Gross profit			403		91		494		423		119		542
Expenses
	Selling		362		75		437		374		96		470
	General and administrative		17		8		25		20		11		31
	Loss (earnings) from associates and joint ventures		1		-		1		(1	)	(1	)	(2	)
	Other (income) expenses		(30	)	(3	)	(33	)	(11	)	3		(8	)
Earnings before income taxes			53		11		64		41		10		51
	Depreciation and amortization		59		6		65		71		8		79
EBITDA			112		17		129		112		18		130
Adjusted EBITDA			112		17		129		112		18		130

Segment information - Retail
			Nine months ended September 30,
			2015						2014
			North America		International		Retail		North America		International		Retail
Sales		- external	8,760		1,650		10,410		8,967		1,946		10,913
		- inter-segment	24		-		24		11		-		11
Total sales			8,784		1,650		10,434		8,978		1,946		10,924
Cost of product sold			6,973		1,332		8,305		7,072		1,574		8,646
Gross profit			1,811		318		2,129		1,906		372		2,278
Expenses
	Selling		1,196		244		1,440		1,225		284		1,509
	General and administrative		57		26		83		60		34		94
	Earnings from associates and joint ventures		(2	)	(1	)	(3	)	(4	)	(3	)	(7	)
	Other income		(18	)	(19	)	(37	)	(7	)	(21	)	(28	)
Earnings before income taxes			578		68		646		632		78		710
	Depreciation and amortization		168		20		188		203		25		228
EBITDA			746		88		834		835		103		938
Adjusted EBITDA			746		88		834		835		103		938

Segment information - Wholesale
			Three months ended September 30,
			2015										2014
			Nitrogen		Potash		Phosphate		Wholesale Other (1	)	Wholesale		Nitrogen		Potash		Phosphate		Wholesale Other (1	)	Wholesale
Sales		- external	226		90		116		86		518		257		61		99		209		626
		- inter-segment	69		17		53		16		155		64		18		74		21		177
Total sales			295		107		169		102		673		321		79		173		230		803
Cost of product sold			165		65		138		87		455		244		77		142		213		676
Gross profit			130		42		31		15		218		77		2		31		17		127
Expenses
	Selling		4		1		1		3		9		5		2		2		4		13
	General and administrative		5		2		1		3		11		3		2		2		3		10
	Loss (earnings) from associates and joint ventures		-		-		-		9		9		-		-		-		(7	)	(7	)
	Other expenses (income)		6		7		3		(1	)	15		6		4		1		-		11
Earnings (loss) before income taxes			115		32		26		1		174		63		(6	)	26		17		100
	Depreciation and amortization		16		16		13		2		47		23		19		12		4		58
EBITDA			131		48		39		3		221		86		13		38		21		158
Share of joint ventures
	Finance costs and income taxes		1		-		-		-		1		7		-		-		1		8
	Depreciation and amortization		4		-		-		-		4		5		-		-		-		5
Adjusted EBITDA			136		48		39		3		226		98		13		38		22		171

(1)	Includes product purchased for resale, ammonium sulfate, ESN and other products.

Segment information - Wholesale
			Nine months ended September 30,
			2015										2014
			Nitrogen		Potash		Phosphate		Wholesale Other (1	)	Wholesale		Nitrogen		Potash		Phosphate		Wholesale Other (1	)	Wholesale
Sales		- external	859		227		344		548		1,978		813		267		321		1,023		2,424
		- inter-segment	304		113		198		121		736		265		115		180		92		652
Total sales			1,163		340		542		669		2,714		1,078		382		501		1,115		3,076
Cost of product sold			620		223		437		573		1,853		810		262		462		1,017		2,551
Gross profit			543		117		105		96		861		268		120		39		98		525
Expenses
	Selling		12		4		3		10		29		11		6		5		12		34
	General and administrative		10		5		4		8		27		9		7		7		10		33
	Loss (earnings) from associates and joint ventures		-		-		-		12		12		-		-		-		(17	)	(17	)
	Other expenses (income)		12		18		16		(39	)	7		(18	)	15		10		(1	)	6
Earnings before income taxes			509		90		82		105		786		266		92		17		94		469
	Depreciation and amortization		54		43		37		12		146		65		50		38		19		172
EBITDA			563		133		119		117		932		331		142		55		113		641
Share of joint ventures
	Finance costs and income taxes		6		-		-		-		6		19		-		-		1		20
	Depreciation and amortization		12		-		-		-		12		10		-		-		-		10
Adjusted EBITDA			581		133		119		117		950		360		142		55		114		671

(1)	Includes product purchased for resale, ammonium sulfate, ESN and other products.

Gross profit by product line
		Three months ended September 30,												Nine months ended September 30,
		2015						2014						2015						2014
		Sales		Cost of product sold		Gross profit		Sales		Cost of product sold		Gross profit		Sales		Cost of product sold		Gross profit		Sales		Cost of product sold		Gross profit
Retail
	Crop nutrients	582		469		113		646		504		142		4,101		3,408		693		4,250		3,475		775
	Crop protection products	1,040		806		234		1,132		900		232		4,002		3,203		799		4,061		3,267		794
	Seed	60		34		26		54		27		27		1,350		1,120		230		1,390		1,121		269
	Merchandise	166		141		25		256		220		36		482		410		72		660		576		84
	Services and other	163		67		96		207		102		105		499		164		335		563		207		356
		2,011		1,517		494		2,295		1,753		542		10,434		8,305		2,129		10,924		8,646		2,278
Wholesale
	Nitrogen	295		165		130		321		244		77		1,163		620		543		1,078		810		268
	Potash	107		65		42		79		77		2		340		223		117		382		262		120
	Phosphate	169		138		31		173		142		31		542		437		105		501		462		39
	Product purchased for resale	49		47		2		165		159		6		345		335		10		744		722		22
	Ammonium sulfate, ESN and other	53		40		13		65		54		11		324		238		86		371		295		76
		673		455		218		803		676		127		2,714		1,853		861		3,076		2,551		525
Other inter-segment eliminations		(160	)	(144	)	(16	)	(178	)	(174	)	(4	)	(760	)	(758	)	(2	)	(663	)	(680	)	17
Total		2,524		1,828		696		2,920		2,255		665		12,388		9,400		2,988		13,337		10,517		2,820
Wholesale share of joint ventures
	Nitrogen	57		58		(1	)	73		56		17		123		119		4		149		109		40
	Product purchased for resale	-		-		-		24		20		4		38		37		1		62		56		6
		57		58		(1	)	97		76		21		161		156		5		211		165		46
Total Wholesale including proportionate share in joint ventures		730		513		217		900		752		148		2,875		2,009		866		3,287		2,716		571

Selected volumes and per tonne information
				Three months ended September 30,
				2015								2014
				Sales tonnes (000's	)	Selling price ($/tonne	)	Cost of product sold ($/tonne	)	Margin ($/tonne	)	Sales tonnes (000's	)	Selling price ($/tonne	)	Cost of product sold ($/tonne	)	Margin ($/tonne	)
Retail
	Crop nutrients
		North America		777		557		429		128		785		571		420		151
		International		342		437		395		42		386		511		453		58
	Total crop nutrients			1,119		520		418		102		1,171		551		431		120
Wholesale
	Nitrogen
		North America
			Ammonia	219		476						207		544
			Urea	378		380						320		436
			Other	163		289						208		335
	Total nitrogen			760		388		217		171		735		438		333		105
	Potash
		North America		147		341						138		395
		International		237		241						113		212
	Total potash			384		279		171		108		251		313		304		9
	Phosphate			269		629		514		115		261		663		546		117
	Product purchased for resale			111		444		424		20		455		361		349		12
	Ammonium sulfate			62		296		134		162		67		330		203		127
	ESN and other			81								87
Total Wholesale				1,667		404		273		131		1,856		433		365		68
Wholesale share of joint ventures
	Nitrogen			142		401		413		(12	)	165		440		339		101
	Product purchased for resale			-		-		-		-		73		329		269		60
				142		401		413		(12	)	238		406		317		89
Total Wholesale including proportionate share in joint ventures				1,809		404		284		120		2,094		429		358		71

Selected volumes and per tonne information
				Nine months ended September 30,
				2015								2014
				Sales tonnes (000's	)	Selling price ($/tonne	)	Cost of product sold ($/tonne	)	Margin ($/tonne	)	Sales tonnes (000's	)	Selling price ($/tonne	)	Cost of product sold ($/tonne	)	Margin ($/tonne	)
Retail
	Crop nutrients
		North America		6,356		542		441		101		6,346		547		435		112
		International		1,516		432		399		33		1,570		496		454		42
	Total crop nutrients			7,872		521		433		88		7,916		537		439		98
Wholesale
	Nitrogen
		North America
			Ammonia	835		544						709		547
			Urea	1,197		407						945		448
			Other	712		310						779		343
	Total nitrogen			2,744		424		226		198		2,433		443		333		110
	Potash
		North America		630		369						802		359
		International		448		240						443		212
	Total potash			1,078		316		208		108		1,245		307		210		97
	Phosphate			841		645		520		125		837		599		553		46
	Product purchased for resale			941		366		356		10		1,943		383		372		11
	Ammonium sulfate			240		345		146		199		265		334		179		155
	ESN and other			501								549
Total Wholesale				6,345		428		292		136		7,272		423		351		72
Wholesale share of joint ventures
	Nitrogen			308		400		388		12		351		424		311		113
	Product purchased for resale			117		321		309		12		225		275		246		29
				425		378		366		12		576		366		286		80
Total Wholesale including proportionate share in joint ventures				6,770		425		297		128		7,848		419		346		73

3. Expenses

	Three months ended				Nine months ended
Other expenses	September 30,				September 30,
	2015		2014		2015		2014
Loss (gain) on derivatives not designated as hedges, net of foreign exchange	13		21		13		(16	)
Interest income	(19	)	(31	)	(52	)	(61	)
Gain on sale of purchase for resale assets	-		-		(38	)	-
Environmental remediation and asset retirement obligations	6		1		15		21
Bad debt (recovery) expense	(4	)	-		28		30
Potash profit and capital tax	3		3		13		9
Other	9		13		22		26
	8		7		1		9

4.  Earnings per Share

Attributable to equity holders of Agrium		Three months ended September 30,				Nine months ended September 30,
		2015		2014		2015		2014
Numerator
	Net earnings from continuing operations	101		91		787		726
	Net loss from discontinued operations	-		(41	)	-		(59	)
	Net earnings	101		50		787		667
Denominator (millions)
	Weighted average number of shares outstanding for basic and diluted earnings per share	141		144		143		144

5. Debt

						September 30,		December 31,
						2015		2014
		Maturity		Rate (%) (1	)
Short-term debt
	Commercial paper	2015 - 2016		0.65		1,657		1,117
	Credit facilities			5.53		125		410
						1,782		1,527

(1)	Weighted average rates at September 30, 2015.

Debentures issued during the three months ended March 31, 2015
Maturity	Rate (%	)	Principal
March 15, 2025	3.375		550
March 15, 2035	4.125		450

6. Financial Instruments 

Commodity price risk                        

Natural gas derivative financial instruments outstanding (notional amounts in millions of MMBtu)

		September 30,								December 31,
		2015								2014
		Notional		Maturities		Average contract price (1	)	Fair value of assets (liabilities	)	Notional		Maturities		Average contract price (1	)	Fair value of assets (liabilities	)
Not designated as hedges
	NYMEX swaps	-		-		-		-		1		2015		3.83		(1	)
	AECO swaps	-		-		-		-		10		2015		3.40		(10	)
								-								(11	)
Designated as hedges
	AECO swaps	86		2015 - 2018		2.81		(50	)	69		2015 - 2018		3.32		(25	)
								(50	)							(25	)

(1)	U.S. dollars per MMBtu.

	Fair value of assets (liabilities)
Maturities of natural gas derivative contracts	2015		2016		2017		2018
Designated as hedges	(4	)	(18	)	(15	)	(13	)

Impact of change in fair value of natural gas derivative financial instruments	September 30,		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	1.72		0.19

Use of derivatives to hedge exposure to natural gas market price risk
Term (gas year - 12 months ending October 31)	2015		2016		2017		2018
Maximum allowable (% of forecasted gas requirements)	75		75		75		25 (1	)
Forecasted average monthly natural gas consumption (millions of MMBtu)	8		9		9		9
Gas requirements hedged using derivatives designated as hedges (%)	56		25		25		17

(1)	Maximum monthly hedged volume may not exceed 90 percent of planned monthly requirements.

For our natural gas derivatives designated in hedging relationships, the underlying risk of the forward contracts is identical to the hedged risk, and accordingly we have established a hedge ratio of 1:1. 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 natural gas forward contracts designated as hedges to other comprehensive income.

Currency risk

Foreign exchange derivative financial instruments outstanding (notional amounts in millions of U.S. dollars)

			September 30,								December 31,
			2015								2014
Sell/Buy			Notional		Maturities		Average contract price(1	)	Fair value of assets (liabilities	)	Notional		Maturities		Average contract price(1	)	Fair value of assets (liabilities	)
Not designated as hedges
	Forwards
		USD/CAD	20		2015		1.34		-		-		-		-		-
		CAD/USD	1,812		2015		1.33		18		1,675		2015		1.14		31
		USD/AUD	26		2015		1.45		-		33		2015		1.13		(3	)
	Swaps
		USD/AUD	1		2015		1.33		1		26		2015		1.12		(1	)
		AUD/USD	1		2015		1.37		-		21		2015		1.13		2
	Options
		USD/CAD - buy USD puts	130		2015		1.23		-		-		-		-		-
		USD/CAD - sell USD calls (2)	135		2015		1.31		(4	)	-		-		-		-
									15								29

(1)	Foreign currency per U.S. dollar.
(2)	Includes $85-million notional of enhanced collars.

		September 30,						December 31,
		2015						2014
		Fair value						Fair value
Financial instruments measured at fair value on a recurring basis		Level 1		Level 2		Carrying value		Level 1		Level 2		Carrying value
Cash and cash equivalents		-		753		753		-		848		848
Accounts receivable - derivatives		-		19		19		-		33		33
Other current financial assets - marketable securities		19		119		138		20		70		90
Accounts payable - derivatives		-		22		22		-		18		18
Other financial liabilities - derivatives		-		32		32		-		22		22
Other financial instruments
Current portion of long-term debt
	Floating rate debt - amortized cost	-		11		11		-		11		11
Long-term debt
	Debentures - amortized cost	-		4,632		4,469		-		3,879		3,483
	Fixed and floating rate debt - amortized cost	-		48		48		-		76		76

There have been no transfers between Level 1 and Level 2 fair value measurements in the nine months ended September 30, 2015 or September 30, 2014. We do not measure any of our financial instruments using Level 3 inputs.

7. Additional Information 

Dividends

September 30,
2015
Declared
Effective	Per share		Total		Paid to Shareholders		Total
December 11, 2014	0.78		112		January 21, 2015		109
February 24, 2015	0.78		112		April 16, 2015		114
May 5, 2015	0.875		125		July 16, 2015		122
August 6, 2015	0.875		120		October 15, 2015		N/A

In May 2015, our Board of Directors approved an increase to our dividend to $3.50 U.S. per common share on an annualized basis.

Normal course issuer bid

In January 2015, the Toronto Stock Exchange accepted our Normal Course Issuer Bid ("NCIB"). Under the NCIB, we may purchase for cancellation up to 5 percent of our currently issued and outstanding common shares until January 25, 2016. The actual number of shares purchased will be at Agrium's discretion and will depend on market conditions, share prices, Agrium's cash position and other factors. During the nine months ended September 30, 2015, we purchased 5,574,331 shares at an average share price of $100.25 for total consideration of $559-million.