Bert Frost: Well, good morning, this is Bert. And yes, it’s an interesting dynamic, but it’s been global and so far successful. So we have to recognize that. We’ve had many conversations with our global customers as well as our domestic customers. We — the team was in Brazil for the conference down there in late January, and we just returned from the TFI yesterday. And we’re going to have various customer interactions. There is a spread between what was purchased before. And so on the retail level, several have inventory priced much higher and they need to dollar cost average. And the feedback we get is they’re waiting for the floor, our feedback is, you might want to review what you think the floor is because I think we’re there.
And so global dynamics will drive this going forward. And again, we — I just look at those dynamics, higher priced natural gas in Europe will keep a portion of that production offline and keep, I think, supply tighter than is recognized and the dynamics that we have in place in North America and Europe with adequate soil moisture, good temperatures. We had a drought last year. We’re not going to have that this year right now and probably lower inventory levels point to a very healthy spring. So we’ll see what happens.
Edlain Rodriguez: Okay. Thank you. That’s all I have.
Operator: We will take a question from Jeff Zekauskas from JPMorgan. Jeff, please go ahead.
Jeff Zekauskas: Thanks very much. Your tax bill to Canada is about $500 million. How much do you expect to get back roughly from the US government and when? And to the same tax problems continue into 2021 and 2022 taxes?
Chris Bohn: Jeff, this is Chris. Thanks for the question. this, as we’ve talked about earlier, this relates back to the early 2000s, and it’s really a tax dispute between Canada and US, where CF is a transfer pricing tax issue, and we made our payments. What I would say is, given that it’s taken this many years to get to where we are now, it will likely take some time before this is fully resolved this whole matter fully resolved. However, in saying that, we have filed amended returns for the payments that we made related to 2006 through 2011, seeking refunds from the US. Those should come sooner than the full resolution of everything. So there is going to be some frictional costs that will come out of this, what that number is.
We just don’t know at this particular time because there’s some interest difference between what Canada charges in the US, much of which we’re contesting but we really don’t know at this particular time, but we should begin to see initial payments probably in the 12 to 18 months with, I would say, full resolution of this anywhere from 36 to 48 months depending on when both jurisdictions get to this item.
Tony Will: And Jeff, the other thing is we did go ahead and make estimated payments for the period of 2012 through 2021 in order to stop the interest ticking as Chris said, the Canada charges a much higher interest rate than the US. And so that’s where some of the frictional cost comes from. But our expectation is that we’ll get much of the money back. And again, the 2006 through 2011 money faster, the rest of it is going to likely have to go back to another round of arbitration when you’re talking about 2012 through 2021. But we’re obviously going to put all efforts forward to recover as much of this as possible.
