MOS 8-K
Mosaic Co (MOS)
8-K
2021-05-03
For: 2021-05-03
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April 07, 2026
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2021
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||
Registrant’s telephone number, including area code: (800 ) 918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||||||
| Securities registered pursuant to Section 12(b) of the Act | |||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934. | |||||||||||
| Emerging growth company | |||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨ | |||||||||||
| Item 2.02. | Results of Operations and Financial Condition. | ||||
The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of The Mosaic Company’s (“Mosaic,” and Mosaic and its subsidiaries, individually or in any combination, “we,” “us” or “our”) announcement regarding its earnings and results of operations for the quarter ended March 31, 2021, as presented in a press release issued on May 3, 2021.
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is certain performance data for the period ended March 31, 2021 to be published on Mosaic’s website.
| Item 9.01. | Financial Statements and Exhibits. | ||||
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The following exhibits are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
| Exhibit No. | Description | |||||||
| 99.1 | ||||||||
| 99.2 | ||||||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| THE MOSAIC COMPANY | |||||||||||||||||||||||
| Date: May 3, 2021 | By: | /s/ Mark J. Isaacson | |||||||||||||||||||||
| Name: | Mark J. Isaacson | ||||||||||||||||||||||
| Title: | Senior Vice President, General Counsel | ||||||||||||||||||||||
| and Corporate Secretary | |||||||||||||||||||||||
Exhibit 99.1
 | The Mosaic Company 101 E. Kennedy Blvd., Suite 2500 Tampa, FL 33602 www.mosaicco.com | |||||||||||||
FOR IMMEDIATE RELEASE | ||||||||||||||
Media Ben Pratt The Mosaic Company 813-775-4206 | Investors Laura Gagnon The Mosaic Company 813-775-4214 | |||||||||||||
THE MOSAIC COMPANY REPORTS FIRST QUARTER 2021 RESULTS
TAMPA, FL, May 3, 2021 - The Mosaic Company (NYSE: MOS), reported net income of $157 million, or $0.41 per share, for the first quarter of 2021. Adjusted EPS(1) was $0.57 and adjusted EBITDA(1) was $560 million. Gross margin was $435 million compared to $41 million a year ago, reflecting improved per tonne margins in all three operating segments as a result of higher phosphates prices, higher potash volumes and transformation benefits. Reported earnings were negatively impacted by notable items of $77 million.
“Mosaic delivered excellent earnings for the first quarter of 2021, and our outlook for the year remains favorable,” said Joc O’Rourke, President and CEO. “We are demonstrating the earnings power resulting from the combination of our long-term cost structure improvements and strong global fertilizer markets.”
Highlights:
•First quarter revenues were up 28 percent year-over-year to $2.3 billion, as the company capitalized on stronger market conditions.
•Gross margins in the quarter were up almost 10-fold from the prior year period, primarily as a result of year-over-year price increases. The gross margin rate in the quarter was 19 percent, up from 2 percent in first quarter of 2020, and the highest gross margin rate since the second quarter of 2015.
•Mosaic's balance sheet continued to strengthen. Unrestricted cash totaled $692 million as of March 31. The company generated $319 million in cash flow from operations in the quarter. Capital expenditures were $289 million in the quarter, and net debt ended the quarter at $3.8 billion, down $700 million from the year ago period.
(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
•Phosphates sales volumes were up 7 percent year-over-year to 2.1 million tonnes. Production volumes were 1.9 million tonnes, reflecting turnaround activity in the quarter. Due to ongoing strong demand, inventories remain well below historical levels, and as a result, sales are expected to be constrained to production volumes in the second quarter. Higher input costs were more than offset by improved pricing, and lower cash conversion costs, which resulted in gross margin per tonne increasing to $84 per tonne, up from last year's loss of $43 per tonne.
•Potash sales volumes of 2.0 million tonnes in the first quarter were up 4 percent year-over-year as the company's operating rate reached 94 percent in the quarter. Essentially flat MOP prices year-over-year, higher volumes and lower brine management spending resulted in a gross margin per tonne of $71. On an adjusted basis, gross margin per tonne in the first quarter was $82, up 19 percent from the prior year period.
•Mosaic Fertilizantes recorded its highest first quarter adjusted EBITDA of $104 million, up 53 percent from the prior year period. In the quarter, Mosaic Fertilizantes generated a gross margin per tonne of $50, primarily due to higher prices. The business is ahead of schedule in reaching its targeted $200 million of annual EBITDA contribution from transformation in the 2019 to 2022 period.
•Mosaic continues to lead the industry in environmental, social and governance performance, and our efforts are being recognized. In addition to being named to Barron’s list of the 100 Most Sustainable Companies, Mosaic was also recognized as the 2020 winner of the prestigious Robert W. Campbell Award by the National Safety Council, which honors companies that achieve business excellence through the integration of environment, health and safety management into business operations.
•The U.S. International Trade Commission concluded that subsidized phosphate imports from Morocco and Russia materially injured the U.S. phosphate industry. As a result, the U.S. Department of Commerce imposed import duties on phosphates from Morocco and Russia. Mosaic sought these duties in order to level the competitive playing field in the U.S.
First Quarter Segment Results
| Potash Results* | 1Q 2021 | 4Q 2020 | 1Q 2020 | ||||||||
| Sales Volumes million tonnes | 2.0 | 2.7 | 1.9 | ||||||||
MOP Selling Price(2) | $200 | $176 | $200 | ||||||||
| Gross Margin (GAAP) per tonne | $71 | $45 | $57 | ||||||||
Adjusted Gross Margin (non-GAAP) per tonne | $82 | $51 | $69 | ||||||||
*Tonnes = finished product tonnes
(2) Average MOP Selling Price (fob mine)
Net sales in the Potash segment totaled $477 million for the first quarter, up from $442 million one year ago, due to higher volumes. Gross margin for the first quarter was $140 million compared to $109 million for the same period a year ago.
Cash cost per tonne excluding brine management during the quarter averaged $64, up from the prior year period average of $57. This increase mainly reflected adverse foreign exchange rates, and a production mix shift at Esterhazy as K1 and K2 contributed higher than expected volumes needed to meet the increased product demand. Esterhazy costs of production will continue to decline as K3 ramps up and K1 and K2 are taken out of service. Brine management cash costs declined to $15 million from $21 million in the prior year quarter as development of K3 nears completion.
| Mosaic Fertilizantes Results* | 1Q 2021 | 4Q 2020 | 1Q 2020 | ||||||||
| Sales Volumes million tonnes | 2.1 | 2.3 | 2.1 | ||||||||
Brazil MAP Selling Price(3) | $421 | $384 | $330 | ||||||||
| Average Finished Product Selling Price (destination) | $370 | $352 | $352 | ||||||||
| Gross Margin (GAAP) per tonne | $50 | $32 | $32 | ||||||||
*Tonnes = finished product tonnes
(3) Average MAP selling price (Brazil production, delivered price to third party customers)
Net sales in the Mosaic Fertilizantes segment were $763 million for the first quarter, up from $731 million in the prior year period due to higher year-over-year prices. Gross margin was $103 million, compared to $66 million for the same period a year ago, as improved pricing and favorable foreign currency impacts offset inflationary and other pressures on production costs.
Inflationary impacts on year-over-year Brazilian Real-based cash costs have been substantially offset by benefits of a weakening Brazilian currency. U.S. dollar cash costs of phosphate conversion were $65 per tonne in the first quarter of 2021, down from $69 per tonne in the prior year period, as transformation benefits offset a lower operating rate. U.S. dollar cash costs of mined rock were $72 per tonne, up from $70 per tonne in the prior year period, as lower mined volumes and rock mix shifts at Araxa offset transformation benefits in the quarter. The company expects both operating rates and mined volumes to revert to normal levels in the second quarter.
| Phosphates Results* | 1Q 2021 | 4Q 2020 | 1Q 2020 | ||||||||
| Sales Volumes million tonnes | 2.1 | 2.3 | 1.9 | ||||||||
DAP Selling Price(4) | $426 | $363 | $274 | ||||||||
| Gross Margin (GAAP) per tonne | $84 | $73 | $(43) | ||||||||
Adjusted Gross Margin (non-GAAP) per tonne | $84 | $73 | $(41) | ||||||||
*Tonnes = finished product tonnes
(4) Average DAP Selling Price (fob plant)
Net sales in the Phosphates segment were $1.0 billion for the first quarter, up from $619 million in the prior year period due to higher year-over-year prices and volumes. Gross margin was $173 million, compared to a loss of $83 million for the same period a year ago, as improved pricing, higher volumes and lower conversion costs offset the impact of higher input costs. Gross margin per tonne was $84 compared to a loss of $43 in the prior-year period.
Other
Selling, general and administrative costs (SG&A) were $102 million, up from $68 million in the year-ago period, which primarily reflected the mark-to-market impact of a higher Mosaic share price on current period equity-based incentive accruals. Last year’s first quarter included a $14 million benefit from the reversal of an accrual related to incentive compensation.
Other operating expenses in the quarter were $20 million, down from $40 million in the first quarter of 2020. Total Asset Retirement Obligation cash spending in the quarter was $38 million, which continued to reflect higher spending related to the Plant City closure.
The tax rate during the quarter was 26.5 percent, down from 42 percent in the prior year period reflecting the geographic shift in earnings. The company continues to expect an effective rate for full year 2021 in the mid-20 percent range under current tax regulations.
2021 Market Outlook and Key Assumptions
Strengthening fundamental trends reflected in our results over the last three quarters are expected to continue through the remainder of 2021. Grower economics in most global growing regions remain attractive as a result of strong crop demand, affordable inputs and favorable weather. In China, domestic crop prices continue to incent nutrient application to drive higher yields. In India, a favorable monsoon, above-average reservoir levels and good crop prices are incenting growers to maximize yields, while higher retail prices may negatively impact fertilizer demand.
Phosphate producer and channel inventories remain well below normal. While Chinese phosphate exports continue to be a key consideration, exports declined in 2020 and are expected to remain lower in 2021, as strong domestic demand and recent industry restructuring limit supplies available for export. In phosphates, the company expects to realize approximately $50 per tonne in margin improvement in the second quarter over the first quarter, reflecting an $80 to $90 per tonne improvement in average realized prices partially offset by $30 to $35 per finished product tonne of higher raw material costs.
Potash is seeing similar dynamics that continue to drive demand globally. In April, India signed a contract for $280 per tonne, up nearly 22 percent from the prior year contract, and Canpotex announced it is fully committed into September, highlighting the tightness in the current market. The company expects to realize a $20 to $30 per tonne improvement in average realized prices in the second quarter over the first quarter of 2021.
The company provided the following modeling assumptions for the full year 2021:
| Estimated reconciling items EBITDA to EPS | Full Year 2021 | ||||
| Depreciation, Depletion & Amortization | $875 - $900 million | ||||
Selling, General, and Administrative(1) | $375 - $400 million | ||||
| Net Interest Expense | $180 - $190 million | ||||
| Non-notable adjustments | $80 - $90 million | ||||
Effective tax rate(2) | Mid 20’s % | ||||
(1)Mark-to-market adjustments on equity-based incentive compensation may drive further changes to SG&A expectations.
(2)The company expects cash taxes for the full year 2021 to be approximately $160 million, dependent upon earnings levels and geographic mix.
| Capital Expenditures Expectations | $ in Billions | ||||
| Sustaining Capital | $0.75-$0.80 | ||||
| Growth Capital | $0.30-$0.35 | ||||
| Total Capital | ~$1.1 | ||||
Sensitivities Table Using 2020 Cost Structure
The company provided the following sensitivities to price and foreign exchange rates to help investors anticipate the potential impact of movements in these factors.
These sensitivities are based on 2020 adjusted EBITDA of $1.56 billion. The company hedges approximately 50 percent of its Brazilian real exposures over time.
| Sensitivity | Full year adj. EBITDA impact(1) | 2020 Actual | ||||||
Average MOP Price / tonne (fob mine)(3) | $10/mt price change = $65 million (2) | $181 | ||||||
Average DAP Price / tonne (fob plant)(3) | $10/mt price change = $105 million | $310 | ||||||
| Average BRL / USD | 0.10 change, unhedged = $13 million(4) | 5.15 | ||||||
| Average CAD / USD | 0.01 change, unhedged = $13 million | 1.35 | ||||||
(1) See “Non-GAAP Financial Measures” for additional information and reconciliation.
(2) Includes impact of Canadian Resource Tax
(3) Approximately 20% of DAP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.; approximately 5% of the MOP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.
(4) The company hedged about 50 percent of the annual sensitivity. Over longer periods of time, inflation is expected to offset a portion of currency benefits.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
Mosaic has posted prepared comments and related slides on its website, www.mosaicco.com/investors, concurrently with the posting of this release and performance data. In addition, the company will provide access to a fireside chat addressing questions on the quarter, current market conditions and other topics on Tuesday, May 4, 2021 at 11 am Eastern. The fireside chat will be available both on its website and via telephone at the following number: 678-825-8336 Conference ID# 1768117. All earnings related material, including audio, will be available up to one year from the time of the earnings call.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the potential drop in oil demand/production and its impact on the availability and price of sulfur, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic’s international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa’ad Al Shamal Phosphate Company (also known as MWSPC), the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, and the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic’s decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic’s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management’s current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic’s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic’s Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and disruptions involving Mosaic’s operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
###
Non-GAAP Financial Measures
This press release includes the presentation and discussion of non-GAAP diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA, referred to as non-GAAP financial measures. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because non-GAAP measures are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies. Adjusted metrics, including adjusted EPS and adjusted EBITDA are calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax. Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that these adjusted measures provide securities analysts, investors, management and others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes these adjusted measures in analyzing and assessing Mosaic’s overall performance and financial trends, for financial and operating decision-making, and to forecast and plan for future periods. These adjusted measures also assist our management in comparing our and our competitors' operating results. We are not providing forward looking guidance for U.S. GAAP reported diluted net earnings per share, gross margin per tonne, or a quantitative reconciliation of forward-looking adjusted EPS, adjusted gross margin and adjusted EBITDA because we are unable to predict with reasonable certainty our notable items without unreasonable effort. Historically, our notable items have included, but are not limited to, foreign currency transaction gain or loss, unrealized gain or loss on derivatives, acquisition-related fees, discrete tax items, contingencies and certain other gains or losses. These items are uncertain, depend on various factors, and could have a material impact on U.S. GAAP reported results for the guidance period. Reconciliations for current and historical periods beginning with the quarter ended June 30, 2019, for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted EBITDA and adjusted gross margin per tonne are provided in the Selected Calendar Quarter Financial Information performance data for the related periods. This information is being furnished under Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.com in the “Financial Information - Quarterly Earnings” section under the “Investors” tab.
For the three months ended March 31, 2021, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.16):
| Amount | Tax effect | EPS impact | ||||||||||||||||||||||||||||||
| Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (46) | $ | 10 | $ | (0.09) | ||||||||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (8) | 2 | (0.02) | |||||||||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (10) | 3 | (0.02) | |||||||||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (5) | 2 | (0.01) | |||||||||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 5 | (0.04) | |||||||||||||||||||||||||||
| Pre-acquisition reserve adjustment | Mosaic Fertilizantes | Other operating income (expense) | 11 | (3) | 0.02 | |||||||||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 3 | (1) | 0.01 | |||||||||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (4) | (0.01) | |||||||||||||||||||||||||||
| Total Notable Items | $ | (77) | $ | 14 | $ | (0.16) | ||||||||||||||||||||||||||
For the three months ended March 31, 2020, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.48):
| Amount | Tax effect | EPS impact | ||||||||||||||||||||||||||||||
| Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (214) | $ | 70 | $ | (0.38) | ||||||||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (51) | 17 | (0.09) | |||||||||||||||||||||||||||
| Legal contingencies | Mosaic Fertilizantes | Other operating income (expense) | (9) | 3 | (0.02) | |||||||||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 7 | (0.03) | |||||||||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (8) | 2 | (0.02) | |||||||||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (8) | 3 | (0.02) | |||||||||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 5 | (2) | 0.01 | |||||||||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 28 | 0.08 | |||||||||||||||||||||||||||
| Government mandated mine shutdown | Phosphates | Cost of goods sold | (5) | 2 | (0.01) | |||||||||||||||||||||||||||
| Total Notable Items | $ | (312) | $ | 130 | $ | (0.48) | ||||||||||||||||||||||||||
Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
| The Mosaic Company | (unaudited) | |||||||
| Three months ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Net sales | $ | 2,297.1 | $ | 1,798.1 | ||||||||||
| Cost of goods sold | 1,862.2 | 1,756.7 | ||||||||||||
| Gross margin | 434.9 | 41.4 | ||||||||||||
| Selling, general and administrative expenses | 101.7 | 67.9 | ||||||||||||
| Other operating expense | 20.0 | 39.7 | ||||||||||||
| Operating earnings | 313.2 | (66.2) | ||||||||||||
| Interest expense, net | (45.0) | (41.1) | ||||||||||||
| Foreign currency transaction gain (loss) | (45.8) | (214.2) | ||||||||||||
| Other income | 3.0 | 4.5 | ||||||||||||
| Earnings (loss) from consolidated companies before income taxes | 225.4 | (317.0) | ||||||||||||
| Provision for (benefit from) income taxes | 59.7 | (133.0) | ||||||||||||
| Earnings (loss) from consolidated companies | 165.7 | (184.0) | ||||||||||||
| Equity in net (loss) of nonconsolidated companies | (7.5) | (20.0) | ||||||||||||
| Net earnings (loss) including noncontrolling interests | 158.2 | (204.0) | ||||||||||||
| Less: Net earnings (loss) attributable to noncontrolling interests | 1.5 | (1.0) | ||||||||||||
| Net earnings (loss) attributable to Mosaic | $ | 156.7 | $ | (203.0) | ||||||||||
| Diluted net earnings (loss) per share attributable to Mosaic | $ | 0.41 | $ | (0.54) | ||||||||||
| Diluted weighted average number of shares outstanding | 382.8 | 378.8 | ||||||||||||
Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
| The Mosaic Company | (unaudited) | |||||||
| March 31, 2021 | December 31, 2020 | |||||||||||||
| Assets | ||||||||||||||
| Current assets: | ||||||||||||||
| Cash and cash equivalents | $ | 692.0 | $ | 574.0 | ||||||||||
| Receivables, net, including affiliate receivables of $114.3 and $144.8, respectively | 851.6 | 881.1 | ||||||||||||
| Inventories | 1,860.7 | 1,739.2 | ||||||||||||
| Other current assets | 323.0 | 326.9 | ||||||||||||
| Total current assets | 3,727.3 | 3,521.2 | ||||||||||||
| Property, plant and equipment, net of accumulated depreciation of $8,301.3 and $8,106.8, respectively | 11,798.9 | 11,854.3 | ||||||||||||
| Investments in nonconsolidated companies | 673.9 | 673.1 | ||||||||||||
| Goodwill | 1,180.0 | 1,173.0 | ||||||||||||
| Deferred income taxes | 1,175.2 | 1,179.4 | ||||||||||||
| Other assets | 1,346.8 | 1,388.8 | ||||||||||||
| Total assets | $ | 19,902.1 | $ | 19,789.8 | ||||||||||
| Liabilities and Equity | ||||||||||||||
| Current liabilities: | ||||||||||||||
| Short-term debt | $ | 15.1 | $ | 0.1 | ||||||||||
| Current maturities of long-term debt | 498.7 | 504.2 | ||||||||||||
| Structured accounts payable arrangements | 797.5 | 640.0 | ||||||||||||
| Accounts payable | 762.3 | 769.1 | ||||||||||||
| Accrued liabilities | 1,281.4 | 1,233.1 | ||||||||||||
| Total current liabilities | 3,355.0 | 3,146.5 | ||||||||||||
| Long-term debt, less current maturities | 3,970.8 | 4,073.8 | ||||||||||||
| Deferred income taxes | 1,072.1 | 1,060.8 | ||||||||||||
| Other noncurrent liabilities | 1,707.2 | 1,753.5 | ||||||||||||
| Equity: | ||||||||||||||
| Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2021 and December 31, 2020 | — | — | ||||||||||||
| Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 390,565,856 shares issued and 379,683,359 shares outstanding as of March 31, 2021, 389,974,041 shares issued and 379,091,544 shares outstanding as of December 31, 2020 | 3.8 | 3.8 | ||||||||||||
| Capital in excess of par value | 876.2 | 872.8 | ||||||||||||
| Retained earnings | 10,667.7 | 10,511.0 | ||||||||||||
| Accumulated other comprehensive loss | (1,923.5) | (1,806.2) | ||||||||||||
| Total Mosaic stockholders' equity | 9,624.2 | 9,581.4 | ||||||||||||
| Noncontrolling interests | 172.8 | 173.8 | ||||||||||||
| Total equity | 9,797.0 | 9,755.2 | ||||||||||||
| Total liabilities and equity | $ | 19,902.1 | $ | 19,789.8 | ||||||||||
Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
| The Mosaic Company | (unaudited) | |||||||
| Three months ended | ||||||||||||||
| March 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Cash Flows from Operating Activities: | ||||||||||||||
| Net cash provided by operating activities | $ | 318.8 | $ | 189.9 | ||||||||||
| Cash Flows from Investing Activities: | ||||||||||||||
| Capital expenditures | (288.6) | (263.5) | ||||||||||||
| Purchases of available-for-sale securities - restricted | (123.7) | (210.0) | ||||||||||||
| Proceeds from sale of available-for-sale securities - restricted | 110.8 | 203.8 | ||||||||||||
| Purchases of held-to-maturity securities | (0.8) | (0.7) | ||||||||||||
| Proceeds from sale of held-to-maturity securities | 0.8 | 0.8 | ||||||||||||
| Other | (7.0) | (0.1) | ||||||||||||
| Net cash used in investing activities | (308.5) | (269.7) | ||||||||||||
| Cash Flows from Financing Activities: | ||||||||||||||
| Payments of short-term debt | — | (132.6) | ||||||||||||
| Proceeds from issuance of short-term debt | 15.0 | 1,105.4 | ||||||||||||
| Payments of structured accounts payable arrangements | (161.0) | (412.9) | ||||||||||||
| Proceeds from structured accounts payable arrangements | 314.7 | 171.6 | ||||||||||||
| Collection of transferred receivables | 86.6 | — | ||||||||||||
| Payments of long-term debt | (114.5) | (14.2) | ||||||||||||
| Cash dividends paid | (18.9) | (18.9) | ||||||||||||
| Other | (0.2) | (0.1) | ||||||||||||
| Net cash provided by financing activities | 121.7 | 698.3 | ||||||||||||
| Effect of exchange rate changes on cash | (20.1) | (68.9) | ||||||||||||
| Net change in cash, cash equivalents and restricted cash | 111.9 | 549.6 | ||||||||||||
| Cash, cash equivalents and restricted cash - beginning of period | 594.4 | 532.3 | ||||||||||||
| Cash, cash equivalents and restricted cash - end of period | $ | 706.3 | $ | 1,081.9 | ||||||||||
| Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cash flows: | ||||||||||||||
| Cash and cash equivalents | $ | 692.0 | $ | 1,069.2 | ||||||||||
| Restricted cash in other current assets | 10.0 | 8.6 | ||||||||||||
| Restricted cash in other assets | 4.3 | 4.1 | ||||||||||||
| Total cash, cash equivalents and restricted cash shown in the unaudited statements of cash flows | $ | 706.3 | $ | 1,081.9 | ||||||||||
Earnings Per Share Calculation
| Three months ended March 31, | ||||||||||||||
| 2021 | 2020 | |||||||||||||
| Net income (loss) attributable to Mosaic | $ | 156.7 | $ | (203.0) | ||||||||||
| Basic weighted average number of shares outstanding | 379.2 | 378.8 | ||||||||||||
| Dilutive impact of share-based awards | 3.6 | — | ||||||||||||
| Diluted weighted average number of shares outstanding | 382.8 | 378.8 | ||||||||||||
| Basic net income (loss) per share attributable to Mosaic | $ | 0.41 | $ | (0.54) | ||||||||||
| Diluted net income (loss) per share attributable to Mosaic | $ | 0.41 | $ | (0.54) | ||||||||||
| Notable items impact on net income (loss) per share attributable to Mosaic | (0.16) | (0.48) | ||||||||||||
| Adjusted diluted net income (loss) per share attributable to Mosaic | $ | 0.57 | $ | (0.06) | ||||||||||
Reconciliation of Non-GAAP Financial Measures
Consolidated Earnings (in millions) | Three months ended March 31, | Three months ended March 31, | ||||||||||||
| 2021 | 2020 | |||||||||||||
| Consolidated net earnings (loss) attributable to Mosaic | $ | 157 | $ | (203) | ||||||||||
| Less: Consolidated interest expense, net | (45) | (41) | ||||||||||||
| Plus: Consolidated depreciation, depletion and amortization | 209 | 217 | ||||||||||||
| Plus: Accretion expense | 17 | 17 | ||||||||||||
| Plus: Share-based compensation (income) expense | 15 | (10) | ||||||||||||
| Plus: Consolidated provision for (benefit from) income taxes | 60 | (133) | ||||||||||||
| Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends | (7) | (20) | ||||||||||||
| Plus: Notable items | 50 | 285 | ||||||||||||
| Adjusted EBITDA | $ | 560 | $ | 234 | ||||||||||
| Three months ended | ||||||||||||||||||||
Potash Gross Margin (per tonne) | March 31, | December 31, | March 31, | |||||||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||||||||
| Gross margin / tonne | $ | 71 | $ | 45 | $ | 57 | ||||||||||||||
| Notable items in gross margin / tonne | 11 | 6 | 12 | |||||||||||||||||
| Adjusted gross margin / tonne | $ | 82 | $ | 51 | $ | 69 | ||||||||||||||
| Three months ended | ||||||||||||||||||||
Phosphates Gross Margin (per tonne) | March 31, | December 31, | March 31, | |||||||||||||||||
| 2021 | 2020 | 2020 | ||||||||||||||||||
| Gross margin / tonne | $ | 84 | $ | 73 | $ | (43) | ||||||||||||||
| Notable items in gross margin / tonne | — | — | 2 | |||||||||||||||||
| Adjusted gross margin / tonne | $ | 84 | $ | 73 | $ | (41) | ||||||||||||||
Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
| Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||||
| Diluted net earnings (loss) per share | $ | (0.60) | $ | (0.11) | $ | (2.43) | $ | (0.54) | $ | 0.12 | $ | (0.02) | $ | 2.17 | $ | 0.41 | ||||||||||
Notable items impact on earnings per share(a) | (0.72) | (0.19) | (2.14) | (0.48) | 0.01 | (0.25) | 1.60 | (0.16) | ||||||||||||||||||
Adjusted diluted net earnings per share(a) | $ | 0.12 | $ | 0.08 | $ | (0.29) | $ | (0.06) | $ | 0.11 | $ | 0.23 | $ | 0.57 | $ | 0.57 | ||||||||||
| Diluted weighted average # of shares outstanding | 385.8 | 385.0 | 378.8 | 378.8 | 381.3 | 379.1 | 382.3 | 382.8 | ||||||||||||||||||
| Total Net Sales | $ | 2,177 | $ | 2,753 | $ | 2,076 | $ | 1,798 | $ | 2,045 | $ | 2,382 | $ | 2,458 | $ | 2,297 | ||||||||||
| Cost of goods sold | 1,950 | 2,473 | 1,996 | 1,757 | 1,788 | 2,027 | 2,046 | 1,862 | ||||||||||||||||||
| Gross Margin | $ | 227 | $ | 280 | $ | 80 | $ | 41 | $ | 257 | $ | 355 | $ | 412 | $ | 435 | ||||||||||
| SG&A | 78 | 78 | 105 | 68 | 95 | 98 | 111 | 102 | ||||||||||||||||||
Other operating (income) expense(p) (r) | 391 | 62 | 1,170 | 39 | 76 | 159 | 6 | 20 | ||||||||||||||||||
| Operating earnings | $ | (242) | $ | 140 | $ | (1,195) | $ | (66) | $ | 86 | $ | 98 | $ | 295 | $ | 313 | ||||||||||
| Interest expense, net | (46) | (43) | (47) | (41) | (49) | (43) | (47) | (45) | ||||||||||||||||||
| Consolidated foreign currency gain/(loss) | 21 | (54) | 31 | (214) | 34 | 6 | 110 | (46) | ||||||||||||||||||
| Earnings from consolidated companies before income taxes | (271) | 52 | (1,214) | (317) | 73 | 66 | 359 | 225 | ||||||||||||||||||
| Provision for (benefit from) income taxes | (52) | 69 | (289) | (133) | (3) | 38 | (480) | 60 | ||||||||||||||||||
| Earnings (loss) from consolidated companies | $ | (219) | $ | (17) | $ | (925) | $ | (184) | $ | 76 | $ | 28 | $ | 839 | $ | 165 | ||||||||||
| Equity in net earnings (loss) of nonconsolidated companies | (11) | (23) | (25) | (20) | (30) | (32) | (11) | (7) | ||||||||||||||||||
| Less: Net earnings (loss) attributable to noncontrolling interests | 3 | 4 | (29) | (1) | (1) | 2 | — | 1 | ||||||||||||||||||
| Net earnings (loss) attributable to Mosaic | $ | (233) | $ | (44) | $ | (921) | $ | (203) | $ | 47 | $ | (6) | $ | 828 | $ | 157 | ||||||||||
| After tax Notable items included in earnings | $ | (277) | $ | (72) | $ | (810) | $ | (182) | $ | 6 | $ | (93) | $ | 610 | $ | (63) | ||||||||||
| Gross Margin Rate | 10 | % | 10 | % | 4 | % | 2 | % | 13 | % | 15 | % | 17 | % | 19 | % | ||||||||||
| Effective Tax Rate (including discrete tax) | 19 | % | 133 | % | 24 | % | 42 | % | (4) | % | 58 | % | (134) | % | 27 | % | ||||||||||
| Discrete Tax benefit (expense) | $ | (10) | $ | (16) | $ | (41) | $ | 28 | $ | 3 | $ | (2) | $ | 580 | $ | (4) | ||||||||||
| Depreciation, Depletion and Amortization | $ | 221 | $ | 211 | $ | 233 | $ | 217 | $ | 215 | $ | 206 | $ | 208 | $ | 209 | ||||||||||
| Accretion Expense | $ | 13 | $ | 16 | $ | 17 | $ | 18 | $ | 17 | $ | 17 | $ | 17 | $ | 17 | ||||||||||
| Share-Based Compensation Expense | $ | 7 | $ | 2 | $ | 5 | $ | (10) | $ | 8 | $ | 7 | $ | 12 | $ | 15 | ||||||||||
| Notable Items | $ | 347 | $ | 69 | $ | 1,113 | $ | 285 | $ | 20 | $ | 101 | $ | (134) | $ | 50 | ||||||||||
Adjusted EBITDA(b) | $ | 360 | $ | 389 | $ | 227 | $ | 234 | $ | 383 | $ | 438 | $ | 508 | $ | 560 | ||||||||||
| Net cash provided by (used in) operating activities | $ | 507 | $ | 486 | $ | 278 | $ | 190 | $ | 809 | $ | 341 | $ | 238 | $ | 319 | ||||||||||
| Cash paid for interest (net of amount capitalized) | 92 | 14 | 86 | 14 | 88 | 8 | 90 | 1 | ||||||||||||||||||
| Cash paid for income taxes (net of refunds) | 10 | 11 | (70) | 67 | (93) | 11 | 21 | 83 | ||||||||||||||||||
| Net cash used in investing activities | $ | (359) | $ | (327) | $ | (347) | $ | (270) | $ | (258) | $ | (267) | $ | (395) | $ | (309) | ||||||||||
| Capital expenditures | (295) | (322) | (340) | (264) | (258) | (265) | (385) | (289) | ||||||||||||||||||
| Net cash (used in) provided by financing activities | $ | (143) | $ | 105 | $ | (66) | $ | 698 | $ | (530) | $ | (219) | $ | (233) | $ | 122 | ||||||||||
| Cash dividends paid | (19) | (19) | (19) | (19) | (19) | (19) | (19) | 87 | ||||||||||||||||||
| Effect of exchange rate changes on cash | $ | 11 | $ | (24) | $ | 9 | $ | (69) | $ | (11) | $ | (2) | $ | 39 | $ | (20) | ||||||||||
| Net change in cash and cash equivalents | $ | 16 | $ | 240 | $ | (126) | $ | 549 | $ | 10 | $ | (147) | $ | (351) | $ | 112 | ||||||||||
| Short-term debt | $ | 94 | $ | 88 | $ | 42 | $ | 1,008 | $ | 610 | $ | 216 | $ | — | $ | 15 | ||||||||||
| Long-term debt (including current portion) | 4,585 | 4,576 | 4,572 | 4,572 | 4,587 | 4,578 | 4,578 | 4,470 | ||||||||||||||||||
| Cash & cash equivalents | 402 | 641 | 519 | 1,069 | 1,073 | 923 | 574 | 692 | ||||||||||||||||||
| Net debt | $ | 4,277 | $ | 4,023 | $ | 4,095 | $ | 4,511 | $ | 4,124 | $ | 3,871 | $ | 4,004 | $ | 3,793 | ||||||||||
Segment Contributions (in millions) | ||||||||||||||||||||||||||
| Phosphates | $ | 917 | $ | 820 | $ | 698 | $ | 619 | $ | 763 | $ | 745 | $ | 990 | $ | 1,001 | ||||||||||
| Potash | 599 | 616 | 395 | 442 | 555 | 464 | 559 | 477 | ||||||||||||||||||
| Mosaic Fertilizantes | 833 | 1,388 | 864 | 731 | 787 | 1,140 | 823 | 764 | ||||||||||||||||||
Corporate and Other(c) | (172) | (71) | 119 | 6 | (60) | 33 | 86 | 55 | ||||||||||||||||||
| Total net sales | $ | 2,177 | $ | 2,753 | $ | 2,076 | $ | 1,798 | $ | 2,045 | $ | 2,382 | $ | 2,458 | $ | 2,297 | ||||||||||
| Phosphates | $ | (393) | $ | (70) | $ | (712) | $ | (107) | $ | (59) | $ | (115) | $ | 134 | $ | 153 | ||||||||||
| Potash | 174 | 148 | (452) | 94 | 124 | 87 | 95 | 125 | ||||||||||||||||||
| Mosaic Fertilizantes | 2 | 98 | 5 | 29 | 77 | 144 | 97 | 90 | ||||||||||||||||||
Corporate and Other(c) | (25) | (36) | (36) | (82) | (56) | (18) | (31) | (55) | ||||||||||||||||||
| Consolidated operating earnings | $ | (242) | $ | 140 | $ | (1,195) | $ | (66) | $ | 86 | $ | 98 | $ | 295 | $ | 313 | ||||||||||
Phosphates(d) | 2,184 | 2,194 | 2,011 | 1,919 | 2,235 | 2,064 | 2,316 | 2,062 | ||||||||||||||||||
Potash(d) | 2,163 | 2,321 | 1,499 | 1,899 | 2,559 | 2,264 | 2,675 | 1,980 | ||||||||||||||||||
| Mosaic Fertilizantes | 2,101 | 3,424 | 2,192 | 2,077 | 2,558 | 3,588 | 2,341 | 2,064 | ||||||||||||||||||
| Corporate and Other | 333 | 348 | 538 | 223 | 501 | 648 | 629 | 475 | ||||||||||||||||||
Total finished product tonnes sold ('000 tonnes) | 6,781 | 8,287 | 6,240 | 6,118 | 7,853 | 8,564 | 7,961 | 6,581 | ||||||||||||||||||
Sales of Performance Products ('000 tonnes)(e) | 785 | 1,138 | 1,003 | 704 | 985 | 1,094 | 1,267 | 1,023 | ||||||||||||||||||
The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
| Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||
| Segment income statement | ||||||||||||||||||||||||||
| Net Sales | $ | 917 | $ | 820 | $ | 698 | $ | 619 | $ | 763 | $ | 745 | $ | 990 | $ | 1,001 | ||||||||||
| Cost of Goods Sold | 929 | 839 | 804 | 702 | 745 | 723 | 821 | 828 | ||||||||||||||||||
| Gross Margin | $ | (12) | $ | (19) | $ | (106) | $ | (83) | $ | 18 | $ | 22 | $ | 169 | $ | 173 | ||||||||||
| Notable Items Included in Gross Margin | (5) | (7) | (16) | (5) | (8) | — | — | — | ||||||||||||||||||
Adjusted Gross Margin(b) | $ | (7) | $ | (12) | $ | (90) | $ | (78) | $ | 26 | $ | 22 | $ | 169 | $ | 173 | ||||||||||
| SG&A | 7 | 9 | 11 | 9 | 10 | 12 | 7 | 10 | ||||||||||||||||||
Other operating (income) expense(r) | 374 | 42 | 595 | 15 | 67 | 125 | 28 | 10 | ||||||||||||||||||
| Operating Earnings | $ | (393) | $ | (70) | $ | (712) | $ | (107) | $ | (59) | $ | (115) | $ | 134 | $ | 153 | ||||||||||
| Plus: Depreciation, Depletion and Amortization | 105 | 109 | 113 | 114 | 113 | 108 | 107 | 102 | ||||||||||||||||||
| Plus: Accretion Expense | 10 | 12 | 12 | 13 | 11 | 12 | 12 | 12 | ||||||||||||||||||
| Plus: Foreign Exchange Gain (Loss) | (2) | 4 | (2) | 14 | 2 | 1 | (1) | 6 | ||||||||||||||||||
| Plus: Other Income (Expense) | — | 12 | — | 5 | — | 4 | 2 | 5 | ||||||||||||||||||
| Less: Earnings (loss) from Consolidated Noncontrolling Interests | 5 | 5 | (29) | — | — | 2 | 2 | 3 | ||||||||||||||||||
| Plus: Notables Items | 371 | 6 | 593 | (11) | 57 | 110 | 14 | (4) | ||||||||||||||||||
Adjusted EBITDA(b) | $ | 86 | $ | 68 | $ | 33 | $ | 28 | $ | 124 | $ | 118 | $ | 266 | $ | 271 | ||||||||||
| Capital expenditures | $ | 122 | $ | 124 | $ | 179 | $ | 138 | $ | 122 | $ | 115 | $ | 163 | $ | 153 | ||||||||||
| Gross Margin $ / tonne of finished product | $ | (7) | $ | (10) | $ | (52) | $ | (43) | $ | 7 | $ | 11 | $ | 73 | $ | 84 | ||||||||||
| Adjusted Gross Margin $ / tonne of finished product | $ | (5) | $ | (6) | $ | (45) | $ | (41) | $ | 12 | $ | 11 | $ | 73 | $ | 84 | ||||||||||
| Gross margin as a percent of sales | (1) | % | (2) | % | (15) | % | (13) | % | 2 | % | 3 | % | 17 | % | 17 | % | ||||||||||
| Freight included in finished goods (in millions) | $ | 91 | $ | 86 | $ | 94 | $ | 76 | $ | 86 | $ | 85 | $ | 109 | $ | 97 | ||||||||||
| Idle/Turnaround costs (excluding notable items) | $ | 43 | $ | 18 | $ | 39 | $ | 35 | $ | 13 | $ | 25 | $ | 15 | $ | 41 | ||||||||||
| Operating Data | ||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||||
| DAP/MAP | 1,275 | 1,310 | 1,276 | 1,332 | 1,166 | 1,134 | 1,304 | 1,210 | ||||||||||||||||||
Performance & other products(f) | 766 | 769 | 608 | 486 | 957 | 822 | 877 | 724 | ||||||||||||||||||
Other products(i) | 144 | 114 | 127 | 101 | 112 | 108 | 135 | 128 | ||||||||||||||||||
Total Finished Product(d) | 2,184 | 2,194 | 2,011 | 1,919 | 2,235 | 2,064 | 2,316 | 2,062 | ||||||||||||||||||
DAP selling price (fob plant)(t) | $ | 345 | $ | 310 | $ | 266 | $ | 274 | $ | 287 | $ | 307 | $ | 363 | $ | 426 | ||||||||||
Average finished product selling price (destination)(g) | $ | 398 | $ | 355 | $ | 329 | $ | 317 | $ | 338 | $ | 354 | $ | 422 | $ | 477 | ||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||
Total tonnes produced(h) | 2,050 | 2,111 | 1,924 | 1,861 | 2,117 | 2,038 | 2,144 | 1,911 | ||||||||||||||||||
| Operating Rate | 85 | % | 87 | % | 79 | % | 75 | % | 85 | % | 82 | % | 86 | % | 77 | % | ||||||||||
| Raw Materials | ||||||||||||||||||||||||||
| Ammonia used in production | $ | 300 | $ | 308 | $ | 272 | $ | 276 | $ | 309 | $ | 311 | $ | 319 | $ | 281 | ||||||||||
| % manufactured ammonia used in production | 20 | % | 15 | % | 4 | % | 17 | % | 19 | % | 23 | % | 31 | % | 23 | % | ||||||||||
| Sulfur used in production | $ | 951 | $ | 985 | $ | 886 | $ | 816 | $ | 966 | $ | 907 | $ | 946 | $ | 841 | ||||||||||
| % prilled sulfur used in production | 17 | % | 16 | % | 14 | % | 13 | % | 17 | % | 14 | % | 19 | % | 27 | % | ||||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||||
Ammonia (tonne)(j) | $ | 337 | $ | 306 | $ | 305 | $ | 309 | $ | 289 | $ | 273 | $ | 277 | $ | 316 | ||||||||||
Sulfur (long ton)(k) | $ | 138 | $ | 119 | $ | 104 | $ | 78 | $ | 76 | $ | 86 | $ | 93 | $ | 119 | ||||||||||
| Blended rock | $ | 63 | $ | 65 | $ | 61 | $ | 62 | $ | 61 | $ | 60 | $ | 61 | $ | 61 | ||||||||||
Phosphate cash conversion costs, production / tonne(w) | $ | 65 | $ | 63 | $ | 62 | $ | 65 | $ | 58 | $ | 63 | $ | 63 | $ | 63 | ||||||||||
Cash costs of U.S. mined rock/production tonne(x) | $ | 39 | $ | 39 | $ | 38 | $ | 35 | $ | 35 | $ | 39 | $ | 40 | $ | 36 | ||||||||||
| ARO cash spending (in millions) | $ | 26 | $ | 29 | $ | 24 | $ | 21 | $ | 26 | $ | 28 | $ | 29 | $ | 32 | ||||||||||
| MWSPC equity earnings (loss) | $ | (12) | $ | (23) | $ | (26) | $ | (21) | $ | (31) | $ | (34) | $ | (11) | $ | (8) | ||||||||||
| MWSPC total sales tonnes (DAP/MAP/NPK) | 482 | 505 | 623 | 546 | 540 | 487 | 565 | 612 | ||||||||||||||||||
The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
| Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||
| Segment income statement | ||||||||||||||||||||||||||
| Net Sales | $ | 599 | $ | 616 | $ | 395 | $ | 442 | $ | 555 | $ | 464 | $ | 559 | $ | 477 | ||||||||||
| Cost of Goods Sold | 418 | 458 | 303 | 333 | 424 | 356 | 439 | 337 | ||||||||||||||||||
| Gross Margin | $ | 181 | $ | 158 | $ | 92 | $ | 109 | $ | 131 | $ | 108 | $ | 120 | $ | 140 | ||||||||||
| Notable Items Included in Gross Margin | — | (12) | (22) | (22) | (22) | (19) | (16) | (22) | ||||||||||||||||||
Adjusted Gross Margin(b) | $ | 181 | $ | 170 | $ | 114 | $ | 131 | $ | 153 | $ | 127 | $ | 136 | $ | 162 | ||||||||||
| SG&A | 5 | 6 | 6 | 5 | 6 | 6 | 8 | 7 | ||||||||||||||||||
Other operating (income) expense(p) | 2 | 4 | 538 | 10 | 1 | 15 | 17 | 8 | ||||||||||||||||||
| Operating Earnings | $ | 174 | $ | 148 | $ | (452) | $ | 94 | $ | 124 | $ | 87 | $ | 95 | $ | 125 | ||||||||||
| Plus: Depreciation, Depletion and Amortization | 79 | 63 | 76 | 70 | 70 | 69 | 72 | 80 | ||||||||||||||||||
| Plus: Accretion Expense | 1 | 3 | 2 | 2 | 3 | 2 | 2 | 2 | ||||||||||||||||||
| Plus: Foreign Exchange Gain (Loss) | 26 | (20) | 27 | (150) | 66 | 34 | 77 | 15 | ||||||||||||||||||
| Plus: Other Income (Expense) | — | 1 | — | 1 | 2 | 1 | — | — | ||||||||||||||||||
| Plus: Notable Items | (26) | 20 | 506 | 158 | (66) | (24) | (67) | (10) | ||||||||||||||||||
Adjusted EBITDA(b) | $ | 254 | $ | 215 | $ | 159 | $ | 175 | $ | 199 | $ | 169 | $ | 179 | $ | 212 | ||||||||||
| Capital expenditures | $ | 130 | $ | 153 | $ | 117 | $ | 98 | $ | 111 | $ | 119 | $ | 149 | $ | 97 | ||||||||||
| Gross Margin $ / tonne of finished product | $ | 84 | $ | 68 | $ | 61 | $ | 57 | $ | 51 | $ | 48 | $ | 45 | $ | 71 | ||||||||||
| Adjusted Gross Margin $ / tonne of finished product | $ | 84 | $ | 73 | $ | 76 | $ | 69 | $ | 60 | $ | 56 | $ | 51 | $ | 82 | ||||||||||
| Gross margin as a percent of sales | 30 | % | 26 | % | 23 | % | 25 | % | 24 | % | 23 | % | 21 | % | 29 | % | ||||||||||
| Supplemental Cost Information | ||||||||||||||||||||||||||
| Canadian resource taxes | $ | 56 | $ | 58 | $ | 13 | $ | 32 | $ | 52 | $ | 26 | $ | 36 | $ | 35 | ||||||||||
| Royalties | $ | 11 | $ | 9 | $ | 7 | $ | 10 | $ | 9 | $ | 8 | $ | 9 | $ | 9 | ||||||||||
Brine inflow expenses(s) | $ | 36 | $ | 32 | $ | 33 | $ | 33 | $ | 26 | $ | 28 | $ | 24 | $ | 23 | ||||||||||
Freight(l) | $ | 68 | $ | 79 | $ | 62 | $ | 74 | $ | 85 | $ | 73 | $ | 81 | $ | 78 | ||||||||||
| Idle/Turnaround costs (excluding notable items) | $ | 25 | $ | 49 | $ | 40 | $ | 3 | $ | — | $ | 15 | $ | 27 | $ | 2 | ||||||||||
| Operating Data | ||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||||
| MOP | 1,919 | 2,099 | 1,313 | 1,709 | 2,282 | 2,030 | 2,435 | 1,747 | ||||||||||||||||||
Performance & other products(m) | 231 | 210 | 173 | 177 | 264 | 223 | 228 | 221 | ||||||||||||||||||
Other products(i) | 14 | 11 | 13 | 13 | 12 | 11 | 12 | 12 | ||||||||||||||||||
Total Finished Product(d) | 2,163 | 2,321 | 1,499 | 1,899 | 2,559 | 2,264 | 2,675 | 1,980 | ||||||||||||||||||
| Crop Nutrients North America | 761 | 906 | 625 | 832 | 977 | 837 | 942 | 876 | ||||||||||||||||||
| Crop Nutrients International | 1,277 | 1,283 | 745 | 947 | 1,447 | 1,327 | 1,612 | 967 | ||||||||||||||||||
| Non-Agricultural | 125 | 132 | 129 | 120 | 135 | 100 | 121 | 137 | ||||||||||||||||||
Total Finished Product(d) | 2,163 | 2,321 | 1,499 | 1,899 | 2,559 | 2,264 | 2,675 | 1,980 | ||||||||||||||||||
MOP selling price (fob mine)(u) | $ | 246 | $ | 235 | $ | 224 | $ | 200 | $ | 180 | $ | 170 | $ | 176 | $ | 200 | ||||||||||
Average finished product selling price (destination)(g) | $ | 277 | $ | 266 | $ | 264 | $ | 233 | $ | 217 | $ | 205 | $ | 209 | $ | 241 | ||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||
| Production Volume | 2,180 | 1,771 | 1,663 | 2,068 | 2,198 | 2,111 | 2,056 | 2,285 | ||||||||||||||||||
| Operating Rate | 83 | % | 67 | % | 63 | % | 85 | % | 91 | % | 87 | % | 85 | % | 94 | % | ||||||||||
MOP cash costs of production including brine / production tonne(n) | $ | 60 | $ | 61 | $ | 56 | $ | 57 | $ | 56 | $ | 52 | $ | 59 | $ | 64 | ||||||||||
| MOP cash costs of brine management / production tonne | $ | 28 | $ | 24 | $ | 21 | $ | 21 | $ | 15 | $ | 16 | $ | 21 | $ | 15 | ||||||||||
| ARO cash spending (in millions) | $ | 2 | $ | 1 | $ | 3 | $ | 1 | $ | 2 | $ | 2 | $ | 3 | $ | 1 | ||||||||||
| Average CAD / USD | $ | 1.338 | $ | 1.320 | $ | 1.320 | $ | 1.390 | $ | 1.387 | $ | 1.333 | $ | 1.304 | $ | 1.266 | ||||||||||
The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
| Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||
| Segment income statement | ||||||||||||||||||||||||||
| Net Sales | $ | 833 | $ | 1,388 | $ | 864 | $ | 731 | $ | 787 | $ | 1,140 | $ | 823 | $ | 764 | ||||||||||
| Cost of Goods Sold | 798 | 1,256 | 794 | 665 | 686 | 963 | 747 | 661 | ||||||||||||||||||
| Gross Margin | $ | 35 | $ | 132 | $ | 70 | $ | 66 | $ | 101 | $ | 177 | $ | 76 | $ | 103 | ||||||||||
| Notable Items Included in Gross Margin | — | — | — | — | — | — | — | — | ||||||||||||||||||
Adjusted Gross Margin(b) | $ | 35 | $ | 132 | $ | 70 | $ | 66 | $ | 101 | $ | 177 | $ | 76 | $ | 103 | ||||||||||
| SG&A | 22 | 23 | 34 | 24 | 19 | 17 | 21 | 18 | ||||||||||||||||||
| Other operating (income) expense | 11 | 11 | 31 | 13 | 5 | 16 | (42) | (5) | ||||||||||||||||||
| Operating Earnings | $ | 2 | $ | 98 | $ | 5 | $ | 29 | $ | 77 | $ | 144 | $ | 97 | $ | 90 | ||||||||||
| Plus: Depreciation, Depletion and Amortization | 32 | 34 | 38 | 28 | 27 | 25 | 25 | 23 | ||||||||||||||||||
| Plus: Accretion Expense | 2 | 1 | 3 | 3 | 3 | 3 | 3 | 3 | ||||||||||||||||||
| Plus: Foreign Exchange Gain (Loss) | (3) | (39) | 7 | (81) | (27) | (3) | 9 | (33) | ||||||||||||||||||
| Plus: Other Income (Expense) | (2) | (2) | (2) | (1) | (2) | (1) | (1) | (1) | ||||||||||||||||||
| Less: Earnings from Consolidated Noncontrolling Interests | — | 1 | 1 | — | — | 1 | 1 | — | ||||||||||||||||||
| Plus: Notable Items | 7 | 35 | 28 | 90 | 31 | 14 | (17) | 22 | ||||||||||||||||||
Adjusted EBITDA(b) | $ | 38 | $ | 126 | $ | 78 | $ | 68 | $ | 109 | $ | 181 | $ | 115 | $ | 104 | ||||||||||
| Capital expenditures | $ | 41 | $ | 43 | $ | 46 | $ | 25 | $ | 20 | $ | 28 | $ | 72 | $ | 39 | ||||||||||
| Gross Margin $ / tonne of finished product | $ | 17 | $ | 39 | $ | 32 | $ | 32 | $ | 39 | $ | 49 | $ | 32 | $ | 50 | ||||||||||
| Adjusted Gross Margin $ / tonne of finished product | $ | 17 | $ | 39 | $ | 32 | $ | 32 | $ | 39 | $ | 49 | $ | 32 | $ | 50 | ||||||||||
| Gross margin as a percent of sales | 4 | % | 10 | % | 8 | % | 9 | % | 13 | % | 16 | % | 9 | % | 13 | % | ||||||||||
| Idle/Turnaround costs (excluding notable items) | $ | 36 | $ | 28 | $ | 16 | $ | 4 | $ | 36 | $ | 7 | $ | 16 | 5 | |||||||||||
| Operating Data | ||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||
| Phosphate produced in Brazil | 763 | 846 | 584 | 699 | 1,161 | 1,343 | 610 | 536 | ||||||||||||||||||
| Potash produced in Brazil | 81 | 88 | 87 | 75 | 71 | 85 | 74 | 63 | ||||||||||||||||||
Purchased nutrients for distribution(q) | 1,257 | 2,490 | 1,521 | 1,303 | 1,326 | 2,160 | 1,657 | 1,465 | ||||||||||||||||||
| Total Finished Product | 2,101 | 3,424 | 2,192 | 2,077 | 2,558 | 3,588 | 2,341 | 2,064 | ||||||||||||||||||
Sales of Performance Products ('000 tonnes)(e) | 220 | 490 | 340 | 150 | 301 | 518 | 357 | 172 | ||||||||||||||||||
| Brazil MAP price (Brazil production delivered price to third party) | $ | 446 | $ | 406 | $ | 365 | $ | 330 | $ | 314 | $ | 366 | $ | 384 | $ | 421 | ||||||||||
Average finished product selling price (destination)(g) | $ | 396 | $ | 405 | $ | 394 | $ | 352 | $ | 308 | $ | 318 | $ | 352 | $ | 370 | ||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||
| MAP | 73 | 198 | 275 | 289 | 306 | 284 | 219 | 235 | ||||||||||||||||||
| TSP | 132 | 45 | 102 | 107 | 126 | 135 | 99 | 107 | ||||||||||||||||||
| SSP | 280 | 263 | 341 | 279 | 331 | 335 | 274 | 301 | ||||||||||||||||||
| DCP | 86 | 113 | 105 | 128 | 140 | 125 | 126 | 106 | ||||||||||||||||||
| NPK | 8 | 41 | 29 | 45 | 61 | 37 | 34 | 54 | ||||||||||||||||||
| Total phosphate tonnes produced | 579 | 660 | 852 | 848 | 964 | 916 | 752 | 803 | ||||||||||||||||||
| MOP | 108 | 105 | 134 | 106 | 113 | 109 | 110 | 82 | ||||||||||||||||||
| Phosphate operating rate | 56 | % | 62 | % | 79 | % | 77 | % | 88 | % | 83 | % | 67 | % | 73 | % | ||||||||||
| Potash operating rate | 64 | % | 62 | % | 79 | % | 77 | % | 67 | % | 64 | % | 65 | % | 49 | % | ||||||||||
| Realized Costs ($/tonne) | ||||||||||||||||||||||||||
| Ammonia/tonne | $ | 378 | $ | 375 | $ | 332 | $ | 352 | $ | 327 | $ | 329 | $ | 338 | $ | 381 | ||||||||||
| Sulfur (long ton) | $ | 196 | $ | 178 | $ | 150 | $ | 117 | $ | 100 | $ | 107 | $ | 113 | $ | 124 | ||||||||||
| Blended rock | $ | 106 | $ | 103 | $ | 94 | $ | 75 | $ | 67 | $ | 65 | $ | 71 | $ | 73 | ||||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||||
| DAP/MAP from Mosaic | 301 | 201 | 176 | 154 | 193 | 82 | 109 | 64 | ||||||||||||||||||
| MicroEssentials® from Mosaic | 356 | 294 | 83 | 117 | 407 | 373 | 189 | 203 | ||||||||||||||||||
| Potash from Mosaic/Canpotex | 558 | 868 | 192 | 293 | 708 | 622 | 383 | 489 | ||||||||||||||||||
Phosphate cash conversion costs in BRL, production / tonne(w) | R$379 | R$351 | R$289 | R$309 | R$265 | R$302 | R$376 | R$353 | ||||||||||||||||||
| Potash cash conversion costs in BRL, production / tonne | R$613 | R$665 | R$552 | R$589 | R$661 | R$810 | R$835 | R$879 | ||||||||||||||||||
| Mined rock costs in BRL, cash produced / tonne | R$336 | R$299 | R$342 | R$312 | R$314 | R$324 | R$375 | R$392 | ||||||||||||||||||
| ARO cash spending (in millions) | $ | 2 | $ | 2 | $ | 3 | $ | 1 | $ | 3 | $ | 4.4 | $ | 6 | $ | 5 | ||||||||||
| Average BRL / USD | $ | 3.920 | $ | 3.969 | $ | 4.115 | $ | 4.451 | $ | 5.376 | $ | 5.373 | $ | 5.403 | $ | 5.470 | ||||||||||
The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
| Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | |||||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||||
| Segment income statement | ||||||||||||||||||||||||||
| Net Sales | $ | (172) | $ | (71) | $ | 119 | $ | 6 | $ | (60) | $ | 33 | $ | 86 | $ | 55 | ||||||||||
| Cost of Goods Sold | (195) | (80) | 95 | 57 | (67) | (15) | 39 | 36 | ||||||||||||||||||
| Gross Margin (Loss) | $ | 23 | $ | 9 | $ | 24 | $ | (51) | $ | 7 | $ | 48 | $ | 47 | $ | 19 | ||||||||||
| Notable items Included in Gross Margin | 7 | (7) | 15 | (51) | 9 | 25 | 39 | (8) | ||||||||||||||||||
Adjusted Gross Margin (Loss)(b) | $ | 16 | $ | 16 | $ | 9 | $ | — | $ | (2) | $ | 23 | $ | 8 | $ | 27 | ||||||||||
| SG&A | 44 | 40 | 54 | 30 | 60 | 63 | 75 | 67 | ||||||||||||||||||
| Other operating (income) expense | 4 | 5 | 6 | 1 | 3 | 3 | 3 | 7 | ||||||||||||||||||
| Operating Earnings (Loss) | $ | (25) | $ | (36) | $ | (36) | $ | (82) | $ | (56) | $ | (18) | $ | (31) | $ | (55) | ||||||||||
| Plus: Depreciation, Depletion and Amortization | 5 | 5 | 6 | 5 | 5 | 4 | 4 | 4 | ||||||||||||||||||
| Plus: Share-Based Compensation Expense | 7 | 2 | 5 | (10) | 8 | 7 | 12 | 15 | ||||||||||||||||||
| Plus: Foreign Exchange Gain (Loss) | — | 1 | (1) | 3 | (7) | (26) | 25 | (34) | ||||||||||||||||||
| Plus: Other Income (Expense) | (2) | (2) | (1) | — | 4 | — | — | — | ||||||||||||||||||
| Less: Earnings (Loss) from Consolidated Noncontrolling Interests | (2) | (2) | (2) | (1) | (1) | (2) | (2) | (1) | ||||||||||||||||||
| Plus: Notable Items | (5) | 8 | (14) | 48 | (2) | 1 | (64) | 42 | ||||||||||||||||||
Adjusted EBITDA(b) | $ | (18) | $ | (20) | $ | (43) | $ | (37) | $ | (49) | $ | (30) | $ | (52) | $ | (27) | ||||||||||
| Elimination of profit in inventory income (loss) included in COGS | $ | 13 | $ | 28 | $ | 9 | $ | 2 | $ | (13) | $ | 14 | $ | (2) | $ | (3) | ||||||||||
| Unrealized gain (loss) on derivatives included in COGS | $ | 7 | $ | (6) | $ | 15 | $ | (51) | $ | 9 | $ | 24 | $ | 39 | $ | (8) | ||||||||||
| Operating Data | ||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 333 | 348 | 538 | 223 | 501 | 648 | 629 | 475 | ||||||||||||||||||
| Sales of Performance Products ('000 tonnes) | 36 | 20 | 36 | 27 | 32 | 21 | 30 | 29 | ||||||||||||||||||
Average finished product selling price (destination)(g) | $ | 399 | $ | 385 | $ | 398 | $ | 343 | $ | 321 | $ | 310 | $ | 317 | $ | 336 | ||||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||||
| DAP/MAP from Mosaic | 52 | 89 | 50 | — | — | — | — | — | ||||||||||||||||||
| MicroEssentials® from Mosaic | 15 | — | 22 | — | — | 11 | 12 | — | ||||||||||||||||||
| Potash from Mosaic/Canpotex | 253 | 180 | 153 | 367 | 404 | 253 | 363 | 400 | ||||||||||||||||||
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Notable Items
| Q1 2021 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (46) | $ | 10 | $ | (0.09) | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (8) | 2 | (0.02) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (10) | 3 | (0.02) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (5) | 2 | (0.01) | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 5 | (0.04) | |||||||||||||||||||||
| Pre-acquisition reserve adjustment | Mosaic Fertilizantes | Other operating income (expense) | 11 | (3) | 0.02 | |||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 3 | (1) | 0.01 | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (4) | (0.01) | |||||||||||||||||||||
| Total Notable Items | $ | (77) | $ | 14 | $ | (0.16) | ||||||||||||||||||||
| Q4 2020 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 110 | $ | (26) | $ | 0.22 | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 39 | (9) | 0.08 | |||||||||||||||||||||
| Pre-acquisition contingencies | Mosaic Fertilizantes | Other operating income (expense) | 8 | (2) | 0.02 | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (16) | 4 | (0.03) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (10) | 2 | (0.03) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (7) | 2 | (0.01) | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 580 | 1.52 | |||||||||||||||||||||
| ARO adjustment | Phosphates | Other operating income (expense) | (5) | 1 | (0.01) | |||||||||||||||||||||
| Tax Rate Adjustment | Consolidated | (Provision for) benefit from income taxes | — | (59) | (0.15) | |||||||||||||||||||||
| ARO Adjustment | Potash | Other operating income (expense) | (3) | 1 | (0.01) | |||||||||||||||||||||
| Total Notable Items | $ | 116 | $ | 494 | $ | 1.60 | ||||||||||||||||||||
| Q3 2020 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 6 | $ | (2) | $ | 0.01 | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 25 | (10) | 0.03 | |||||||||||||||||||||
| Legal contingencies | Mosaic Fertilizantes | Other operating income (expense) | (8) | 3 | (0.01) | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (19) | 7 | (0.03) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (11) | 4 | (0.02) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (6) | 2 | (0.01) | |||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 6 | (2) | 0.01 | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (2) | (0.01) | |||||||||||||||||||||
| ARO adjustment | Phosphates | Other operating income (expense) | (73) | 28 | (0.12) | |||||||||||||||||||||
| Tax Rate Adjustment | Consolidated | (Provision for) benefit from income taxes | — | (14) | (0.04) | |||||||||||||||||||||
| ARO adjustment | Mosaic Fertilizantes | Other operating income (expense) | (3) | 1 | — | |||||||||||||||||||||
| New Wales environmental reserve | Phosphates | Other operating income (expense) | (35) | 14 | (0.05) | |||||||||||||||||||||
| Integration costs | Consolidated | Other operating income (expense) | (7) | 3 | (0.01) | |||||||||||||||||||||
| Total Notable Items | $ | (125) | $ | 32 | $ | (0.25) | ||||||||||||||||||||
| Q2 2020 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 34 | $ | (15) | $ | 0.05 | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 9 | (4) | 0.01 | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 9 | (0.03) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (12) | 5 | (0.02) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (7) | 3 | (0.01) | |||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 3 | (1) | — | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 3 | 0.01 | |||||||||||||||||||||
| Government mandated mine shutdown | Phosphates | Cost of goods sold | (8) | 3 | (0.01) | |||||||||||||||||||||
| Legal settlement | Potash | Other operating income (expense) | 7 | (3) | 0.01 | |||||||||||||||||||||
| Write-down of assets | Mosaic Fertilizantes | Other operating income (expense) | (4) | 2 | (0.01) | |||||||||||||||||||||
| ARO adjustment - closed facilities | Phosphates | Other operating income (expense) | (50) | 22 | (0.07) | |||||||||||||||||||||
| Tax Rate Change | Consolidated | (Provision for) benefit from income taxes | — | 32 | 0.08 | |||||||||||||||||||||
| Total Notable Items | $ | (50) | $ | 56 | $ | 0.01 | ||||||||||||||||||||
| Q1 2020 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (214) | $ | 70 | $ | (0.38) | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (51) | 17 | (0.09) | |||||||||||||||||||||
| Legal contingencies | Mosaic Fertilizantes | Other operating income (expense) | (9) | 3 | (0.02) | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 7 | (0.03) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Phosphates | Other operating income (expense) | (8) | 2 | (0.02) | |||||||||||||||||||||
| Closed and indefinitely idled facility costs | Potash | Other operating income (expense) | (8) | 3 | (0.02) | |||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 5 | (2) | 0.01 | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 28 | 0.08 | |||||||||||||||||||||
| Government mandated mine shutdown | Phosphates | Cost of goods sold | (5) | 2 | (0.01) | |||||||||||||||||||||
| Total Notable Items | $ | (312) | $ | 130 | $ | (0.48) | ||||||||||||||||||||
| Q4 2019 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 31 | $ | (18) | $ | 0.03 | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 15 | (9) | 0.01 | |||||||||||||||||||||
| Louisiana gypstack costs | Phosphates | Cost of goods sold | (2) | 1 | — | |||||||||||||||||||||
| Plant City closure costs | Phosphates | Other operating income (expense) | 13 | — | 0.03 | |||||||||||||||||||||
| ARO adjustment | Phosphates | Other operating income (expense) | 1 | (1) | — | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (41) | (0.11) | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (22) | 17 | (0.01) | |||||||||||||||||||||
| ARO adjustment | Potash | Other operating income (expense) | (3) | 2 | — | |||||||||||||||||||||
| Asset write-off | Mosaic Fertilizantes | Other operating income (expense) | (4) | 3 | — | |||||||||||||||||||||
| Goodwill impairment | Phosphates | Other operating income (expense) | (589) | 80 | (1.34) | |||||||||||||||||||||
| Inventory lower of cost or market | Phosphates | Cost of goods sold | (14) | 9 | (0.01) | |||||||||||||||||||||
| Legal contingencies | Mosaic Fertilizantes | Other operating income (expense) | (31) | 19 | (0.03) | |||||||||||||||||||||
| Colonsay write-off | Potash | Restructuring and other (expense) | (530) | 263 | (0.71) | |||||||||||||||||||||
| Total Notable Items | $ | (1,135) | $ | 325 | $ | (2.14) | ||||||||||||||||||||
Note: The tax effect of Plant City closure costs includes an income tax component of 23.7%, the goodwill impairment includes an income tax componenet of 13.5% and the Colonsay write-off includes an income tax component of 49.7% which are calculated at the rate specific to those earnings.
| Q3 2019 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per basic share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (54) | $ | 16 | $ | (0.10) | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (7) | 2 | (0.01) | |||||||||||||||||||||
| Louisiana gypstack costs | Phosphates | Cost of goods sold | (7) | 2 | (0.01) | |||||||||||||||||||||
| Integration costs | Corporate and Other | Other operating income (expense) | (2) | 1 | — | |||||||||||||||||||||
| Plant City closure costs | Phosphates | Other operating income (expense) | 15 | (4) | 0.03 | |||||||||||||||||||||
| ARO adjustment | Phosphates | Other operating income (expense) | (31) | 9 | (0.06) | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (16) | (0.05) | |||||||||||||||||||||
| ARO adjustment | Mosaic Fertilizantes | Other operating income (expense) | 4 | (1) | 0.01 | |||||||||||||||||||||
| Realized gain on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | 13 | (4) | 0.02 | |||||||||||||||||||||
| Accelerated depreciation | Potash | Cost of goods sold | (12) | 4 | (0.02) | |||||||||||||||||||||
| Total Notable Items | $ | (81) | $ | 9 | $ | (0.19) | ||||||||||||||||||||
Note: The tax effect of Plant City closure costs includes an income tax component of 22.9%, which is calculated at the rate specific to those earnings.
| Q2 2019 | ||||||||||||||||||||||||||
| Description | Segment | Line Item | Amount (in millions) | Tax Effect(v) (in millions) | EPS Impact (per diluted share) | |||||||||||||||||||||
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 21 | $ | (5) | $ | 0.04 | ||||||||||||||||||
| Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 7 | (2) | 0.01 | |||||||||||||||||||||
| Louisiana gypstack costs | Phosphates | Cost of goods sold | (5) | 1 | (0.01) | |||||||||||||||||||||
| Integration costs | Corporate and Other | Other operating income (expense) | (3) | 1 | (0.01) | |||||||||||||||||||||
| Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (4) | 1 | (0.01) | |||||||||||||||||||||
| Earn-out obligation | Corporate and Other | Other operating income (expense) | 1 | — | — | |||||||||||||||||||||
| Plant City closure costs | Phosphates | Other operating income (expense) | (369) | 85 | (0.73) | |||||||||||||||||||||
| ARO adjustment | Phosphates | Other operating income (expense) | (3) | 1 | (0.01) | |||||||||||||||||||||
| Miski Mayo flood insurance proceeds | Phosphates | Other operating income (expense) | 8 | (2) | 0.02 | |||||||||||||||||||||
| Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (10) | (0.02) | |||||||||||||||||||||
| Total Notable Items | $ | (347) | $ | 70 | $ | (0.72) | ||||||||||||||||||||
Footnotes
(a)Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See "Non-GAAP Reconciliations".
(b)See definitions of Adjusted EBITDA and Adjusted Gross Margin under “Non-GAAP Reconciliations”.
(c)Includes elimination of intersegment sales.
(d)Finished product sales volumes include intersegment sales.
(e)Includes MicroEssentials, K-Mag, Aspire and Sus-Terra sales tonnes.
(f)Includes MicroEssentials and performance products.
(g)Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China.
(h)Includes crop nutrient dry concentrates and animal feed ingredients.
(i)Includes finished goods sales of feed and other products.
(j)Amounts are representative of our average ammonia costs in cost of goods sold.
(k)Amounts are representative of our average sulfur costs in cost of goods sold.
(l)Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.
(m)Includes K-Mag, and Aspire finished performance products.
(n)MOP cash costs of production are reflective of actual costs during the period excluding brine management costs, depreciation, depletion, accretion, carbon-based and Canadian resource tax, idle and turnaround costs. Total Production costs for MOP production excludes K-Mag costs, Aspire raw material costs and incremental Aspire operating costs.
(o)Includes industrial and feed sales.
(p)Includes $530 million related to the Colonsay write-off in Q4 of 2019.
(q)Includes sales volumes of phosphate and potash nutrients purchased from other Mosaic segments and Canpotex.
(r)Inlcudes a loss of $369 million related to costs for the permanent closure of Plant City in Q2 2019 and $589 million related to the goodwill impairment in Q4 of 2019.
(s)Starting in Q3 2019, includes approximately $6 million per quarter of accelerated depreciation included as a notable item.
(t)Includes intercompany sales.
(u)Total production costs less depreciation, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of finished phosphate production in the period.
(v)Tax impact is based on our expected annual effective tax rate.
(w)Total production cost less depreciation/depletion, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of rock produced in the period.
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Mosaic has presented in this Selected Calendar Quarter Financial Information certain non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including: Adjusted Diluted Net Earnings Per Share, Consolidated Adjusted EBITDA, Segment Adjusted EBITDA, and Adjusted Gross Margin. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Each of the non-GAAP financial measures we present is determined as described below.
The non-GAAP financial measures we present should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because these non-GAAP measures, as presented, are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies.
Adjusted Diluted Net Earnings Per Share
Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Notable items impact on diluted net earnings per share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that adjusted diluted net earnings per share provides securities analysts, investors and others, in addition to management, with useful supplemental information regarding our performance by excluding certain items that may not be indicative of or are unrelated to our core operating results. Management utilizes adjusted diluted net earnings per share in analyzing and assessing Mosaic’s overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted net earnings per share also assists our management in comparing our and our competitors' operating results. Reconciliations of adjusted diluted net earnings per share to diluted net earnings per share for the periods presented are provided under “Consolidated Data” on the first page of this Selected Calendar Quarter Financial Information.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization, asset retirement obligation accretion, share-based compensation expense and provision for/(benefit from) income taxes less equity in net earnings (loss) of nonconsolidated companies, net of dividends. Consolidated Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. Consolidated Adjusted EBITDA is a non-GAAP financial measure that we provide to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Consolidated Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, consolidated Net Income (Loss) as a measure of operating performance. A reconciliation of Consolidated Net Income (Loss) to Consolidated Adjusted EBITDA is provided below.
(in millions) | Q2 2019 | Q3 2019 | Q4 2019 | Q1 2020 | Q2 2020 | Q3 2020 | Q4 2020 | Q1 2021 | ||||||||||||||||||
| Consolidated Net Income (Loss) | $ | (233) | $ | (44) | $ | (921) | $ | (203) | $ | 47 | $ | (6) | $ | 828 | $ | 157 | ||||||||||
| Less: Consolidated Interest Expense, Net | (46) | (43) | (47) | (41) | (49) | (43) | (47) | (45) | ||||||||||||||||||
| Plus: Consolidated Depreciation, Depletion & Amortization | 221 | 211 | 233 | 217 | 215 | 206 | 208 | 209 | ||||||||||||||||||
| Plus: Accretion Expense | 13 | 16 | 17 | 17 | 17 | 17 | 15 | 17 | ||||||||||||||||||
| Plus: Share-Based Compensation Expense (Benefit) | 7 | 2 | 5 | (10) | 8 | 7 | 12 | 15 | ||||||||||||||||||
| Plus: Consolidated Provision for (Benefit from) Income Taxes | (52) | 69 | (289) | (133) | (3) | 38 | (480) | 60 | ||||||||||||||||||
| Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends | (11) | (23) | (25) | (20) | (30) | (32) | (12) | (7) | ||||||||||||||||||
| Plus: Notable Items | 347 | 69 | 1,113 | 285 | 20 | 101 | (134) | 50 | ||||||||||||||||||
| Consolidated Adjusted EBITDA | $ | 360 | $ | 389 | $ | 227 | $ | 234 | $ | 383 | $ | 438 | $ | 508 | $ | 560 | ||||||||||
Segment Adjusted EBITDA
Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus asset retirement obligation accretion plus foreign exchange gain (loss) plus other income (expense) less equity earnings (loss) from noncontrolling interests. Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. We provide these non-GAAP financial measures because we believe they are relevant and useful to securities analysts, investors and others because they are part of our internal management reporting and planning process, and our management uses these measures to evaluate the operational performance and valuation of our segments. Management also uses these measures as a method of comparing segment, performance with that of its competitors. Segment Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, segment Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, are the most directly comparable GAAP measures because we do not allocate taxes on a segment basis. Reconciliations of Segment Adjusted EBITDA to segment Operating Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.
Adjusted Gross Margin
Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management believes the adjusted measures provides security analysts, investors, management & others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes adjusted gross margin in analyzing and assessing Mosaic's overall performance for financial and operating decision-making and to forecast and plan for future periods.