Issue costs of long-term debt obligations and gains and losses on interest rate swaps qualifying for hedge accounting are capitalized to long-term obligations and are amortized to expense over the term of the related liability using the effective interest method.
Source: Potash Corp. of Saskatchewan Inc., Annual Report
You have visited 10 password protected pages for free. Others contain data covered by 
.
Sign Up Now to get full access to whole website and cut out all advertisements.
Potash Corp. of Saskatchewan Inc., Statement of Financial Position, Debt
USD $ in millions
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
|---|---|---|---|---|---|---|
 |
Short-term debt and current portion of long-term debt | |
|
|
|
|
|
Long-term debt (excluding current portion) | |
|
|
|
|
|
Total debt | |
|
|
|
|
Source: Based on data from Potash Corp. of Saskatchewan Inc., Annual Reports
| Item | Description | The company |
|---|---|---|
| Total debt | Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. | Potash Corp. of Saskatchewan Inc.'s total debt increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level. |
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
Potash Corp. of Saskatchewan Inc.
USD $ in millions
| 12 months ended | Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | |
|---|---|---|---|---|---|---|
|
Interest expense on debt | |
|
|
|
|
|
Borrowing costs capitalized to property, plant and equipment | |
|
|
|
|
|
Interest costs incurred | |
|
|
|
|
Source: Based on data from Potash Corp. of Saskatchewan Inc., Annual Reports
| Item | Description | The company |
|---|---|---|
| Interest expense on debt | Represents the portion of interest incurred in the period on debt arrangements that was charged against earnings. | Potash Corp. of Saskatchewan Inc.'s interest expense on debt declined from 2009 to 2010 but then increased from 2010 to 2011 exceeding 2009 level. |
| Borrowing costs capitalized to property, plant and equipment | The amount of interest that was capitalized during the period. | Potash Corp. of Saskatchewan Inc.'s borrowing costs capitalized to property, plant and equipment increased from 2009 to 2010 but then slightly declined from 2010 to 2011 not reaching 2009 level. |
| Interest costs incurred | Total interest costs incurred during the period and either capitalized or charged against earnings. | Potash Corp. of Saskatchewan Inc.'s interest costs incurred increased from 2009 to 2010 and from 2010 to 2011. |
You have visited 10 password protected pages for free. Others contain data covered by .
Sign Up Now to get full access to whole website and cut out all advertisements.
| Dec 31, 2011 | Dec 31, 2010 | Dec 31, 2009 | Dec 31, 2008 | Dec 31, 2007 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (USD $ in millions) | ||||||
|
Net income | |
|
|
|
|
|
Add: Interest expense on debt | |
|
|
|
|
|
Add: Income tax expense (benefit) | |
|
|
|
|
|
Earnings before interest and tax (EBIT) | |
|
|
|
|
|
Interest costs incurred | |
|
|
|
|
| Ratio With and Without Capitalized Interest | ||||||
|
Interest coverage ratio (excluding capitalized interest)1 | |
|
|
|
|
|
Adjusted interest coverage ratio (including capitalized interest)2 | |
|
|
|
|
2011 Calculations
1 Interest coverage ratio (excluding capitalized interest) = EBIT ÷ Interest expense on debt
= ÷ =
2 Adjusted interest coverage ratio (including capitalized interest) = EBIT ÷ Interest costs incurred
= ÷ =
| Ratio | Description | The company |
|---|---|---|
| Adjusted interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments (including capitalized interest). | Potash Corp. of Saskatchewan Inc.'s adjusted interest coverage ratio improved from 2009 to 2010 and from 2010 to 2011. |
Stock Analysis on Net (www.stock-analysis-on.net)
Copyright © 2012 EBIT Financial Analyses Center