PCS U.S.
EMPLOYEES SAVINGS PLAN
FOR COLLECTIVELY BARGAINED EMPLOYEES
Notes to the Financial Statements
December 31, 2019 and 2018
(US
dollars)
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b)
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Change in fair values levels
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The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value
hierarchy. Changes in economic conditions or model-based valuation techniques may require transfer of financial instruments from one fair value level to another. In such instances, the transfer is reported at the end of the reporting period.
Plan management evaluated the significance of transfers between levels based upon the nature of the financial instrument and size of the
transfer relative to total net assets available for plan benefits. For the year ended December 31, 2019 and 2018, there were no significant transfers in or out of levels 1, 2, or 3.
The Fidelity Managed Income Portfolio II The Portfolio is a stable value fund that is a commingled pool of the Fidelity Group
Trust for Employee Benefit Plans. The Portfolio is invested in fixed interest insurance company investment contracts, money market funds, corporate and government bonds, mortgage-backed securities, bond funds, and other fixed income securities, with
the objective of providing a high level of return that is consistent with also providing stability of investment return and preservation of capital and liquidity to pay the Plan benefits of its retirement plan investors.
Certain events limit the ability of the Plan to transact at contract value with the Portfolio issuer. Such events include the following:
(a) the Plans failure to qualify under the IRC; (b) the establishment of a defined contribution plan that competes with the Plan for employee contributions; (c) any substantive modification of the Portfolio or the administration
of the Portfolio that is not consented to by the wrap issuer; (d) any change in law, regulation, or administrative ruling applicable to the Plan that could have a material adverse effect on the Portfolios cash flow; (e) any
communication given to unitholders that is designed to induce or influence unitholders not to invest in the Portfolio or to transfer assets out of the Portfolio; (f) any transfer of assets from the Portfolio directly to a competing investment
option; or (g) the inability of the Portfolio to maintain wrap contracts covering its underlying assets. The Plan administrator does not believe the occurrence of any such value event, which would limit the Plans ability to transact at
contract value with participants, is probable.
Participants may ordinarily direct the withdrawal or transfer of all or a portion of their
investment in the Portfolio at contract value. The crediting interest rates were 2.24 percent and 2.17 percent at December 31, 2019 and 2018, respectively, which were based on the interest rates of the underlying portfolio of assets. The
average yield for the year ended December 31, 2019, was 2.71 percent. The participants in the Plan are able to redeem from the Portfolio immediately. The Portfolio has no redemption restrictions and there is no redemption notice period required
for participants.
7.
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RELATED PARTY AND
PARTY-IN-INTEREST TRANSACTIONS
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Certain Plan investments are shares of investment funds administered by Fidelity Investments Institutional Operations Company, Inc., an
affiliate of the Trustee, investment manager and recordkeeper. These transactions qualify as exempt party-in-interest transactions. Fees paid by the Plan for the
investment management services were included as a reduction of the return earned on each fund.
At December 31, 2019 and 2018, the Plan
held approximately 110,299 and 114,334 shares, respectively, of Nutrien common stock, with a fair value of $5,284,421 and $5,373,689, respectively. During the year ended December 31, 2019, the Plan recorded dividend income of $196,471.
8.
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RISKS AND UNCERTAINTIES
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The Plan utilizes various investment instruments, including mutual funds, a pooled investment stable value fund, a common collective trust,
short term funds and common stock. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain investment securities, it is
reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect the amounts reported in the financial statements. As of December 31, 2019, there was a significant
concentration of participant-directed investments in the common stock of Nutrien (11 percent), a collective investment fund (15 percent), a passively managed S&P 500 index fund (13 percent) and two passively managed vintage target date
funds (11 and 10 percent).
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