EX-99.2 5 performancedataq32019-.htm EXHIBIT 99.2 - PERFORMANCE DATA (2019 Q3) Exhibit


Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
$
(1.23
)
$
0.11

$
0.18

$
0.64

$
0.29

$
0.34

$
(0.60
)
$
(0.11
)
Notable items impact on earnings per share(a)
(1.57
)
(0.09
)
(0.22
)
(0.11
)
(0.48
)
0.09

(0.72
)
(0.19
)
Adjusted diluted net earnings per share(a)
$
0.34

$
0.20

$
0.40

$
0.75

$
0.77

$
0.25

$
0.12

$
0.08

Diluted weighted average # of shares outstanding
351.0

384.1

387.2

387.5

387.6

387.4

385.8

385.0

 
 
 
 
 
 
 
 
 
Total Net Sales
$
2,092

$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

Cost of goods sold
1,812

1,691

1,910

2,432

2,055

1,590

1,950

2,473

Gross Margin
$
280

$
243

$
295

$
496

$
466

$
310

$
227

$
280

SG&A
83

94

79

79

90

94

78

78

Other operating (income) expense(t)
70

68

20

24

118

14

391

62

Operating earnings
$
127

$
81

$
196

$
393

$
258

$
202

$
(242
)
$
140

Interest expense, net
(40
)
(49
)
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
Consolidated foreign currency gain/(loss)
(27
)
(32
)
(79
)
(2
)
(79
)
23

21

(54
)
Earnings from consolidated companies before income taxes
59

(7
)
70

342

145

176

(271
)
52

Provision for (benefit from) income taxes
490

(50
)
4

91

33

46

(52
)
69

Earnings (loss) from consolidated companies
$
(431
)
$
43

$
66

$
251

$
112

$
130

$
(219
)
$
(17
)
Equity in net earnings (loss) of nonconsolidated companies
1

(3
)
2

(2
)
(1
)
—

(11
)
(23
)
Less: Net earnings (loss) attributable to noncontrolling interests
1

(2
)
—

2

(1
)
(1
)
3

4

Net earnings (loss) attributable to Mosaic
$
(431
)
$
42

$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
After tax Notable items included in earnings
$
(550
)
$
(35
)
$
(86
)
$
(41
)
$
(185
)
$
33

$
(277
)
$
(72
)
 
 
 
 
 
 
 
 
 
Gross Margin Rate
13
%
13
%
13
%
17
%
18
%
16
%
10
%
10
%
 
 
 
 
 
 
 
 
 
Effective Tax Rate (including discrete tax)
828
%
714
%
5
%
26
%
23
%
26
%
19
%
133
%
Discrete Tax benefit (expense)
$
(463
)
$
48

$
13

$
(29
)
$
(33
)
$
—

$
(10
)
$
(16
)
 
 
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
$
172

$
217

$
217

$
215

$
235

$
218

$
221

$
211

Accretion Expense
$
6

$
12

$
12

$
13

$
11

$
15

$
13

$
16

Share-Based Compensation Expense
$
3

$
15

$
7

$
3

$
2

$
15

$
7

$
2

Notable Items
$
95

$
115

$
128

$
13

$
176

$
(42
)
$
347

$
69

Adjusted EBITDA(b)
$
375

$
399

$
480

$
622

$
603

$
430

$
349

$
366

 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
411

$
(71
)
$
807

$
524

$
150

$
(176
)
$
507

$
486

Cash paid for interest (net of amount capitalized)
57

11

78

9

76

11

92

14

Cash paid for income taxes (net of refunds)
(53
)
13

14

(13
)
(48
)
94

10

11

Net cash used in investing activities
$
(25
)
$
(1,220
)
$
(197
)
$
(244
)
$
(284
)
$
(329
)
$
(359
)
$
(327
)
Capital expenditures
(230
)
(223
)
(201
)
(241
)
(289
)
(314
)
(295
)
(322
)
Net cash (used in) provided by financing activities
$
1,090

$
(213
)
$
(170
)
$
(297
)
$
(45
)
$
22

$
(143
)
$
105

Cash dividends paid
(9
)
(10
)
(10
)
(10
)
(10
)
(10
)
(19
)
(19
)
Effect of exchange rate changes on cash
$
(8
)
$
13

$
(65
)
$
(11
)
$
(1
)
$
14

$
11

$
(24
)
Net change in cash and cash equivalents
$
1,468

$
(1,491
)
$
375

$
(28
)
$
(180
)
$
(469
)
$
16

$
240

 
 
 
 
 
 
 
 
 
Short-term debt
$
6

$
72

$
20

$
26

$
12

$
168

$
94

$
88

Long-term debt (including current portion)
5,222

5,074

4,998

4,584

4,518

4,574

4,585

4,576

Cash & cash equivalents
2,154

659

1,035

1,030

848

385

402

641

Net debt
$
3,074

$
4,487

$
3,983

$
3,580

$
3,682

$
4,357

$
4,277

$
4,023

 
 
 
 
 
 
 
 
 
Segment Contributions (in millions)
 
 
 
 
 
 
 
 
Phosphates
$
997

$
866

$
1,053

$
1,041

$
926

$
806

$
917

$
820

Potash
496

404

569

609

592

504

599

616

Mosaic Fertilizantes
520

665

713

1,400

969

698

833

1,388

Corporate and Other(c)
79

(1
)
(130
)
(122
)
34

(108
)
(172
)
(71
)
Total net sales
$
2,092

$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

 
 
 
 
 
 
 
 
 
Phosphates
$
71

$
78

$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
Potash
97

92

121

149

149

176

174

148

Mosaic Fertilizantes
10

13

17

123

85

27

2

98

Corporate and Other(c)
(51
)
(102
)
(84
)
(49
)
(59
)
(45
)
(25
)
(36
)
Consolidated operating earnings (loss)
$
127

$
81

$
196

$
393

$
258

$
202

$
(242
)
$
140





 
 
 
 
 
 
 
 
 
Phosphates(d)
2,496

1,945

2,302

2,235

1,876

1,790

2,184

2,194

Potash(d)
2,217

1,690

2,364

2,428

2,301

1,861

2,163

2,321

Mosaic Fertilizantes
1,399

1,584

1,846

3,595

2,108

1,528

2,101

3,424

Corporate and Other
497

266

348

311

438

249

333

348

Total finished product tonnes sold ('000 tonnes)
6,609

5,485

6,860

8,569

6,723

5,428

6,781

8,287

Percent specialty(e)
18
%
22
%
25
%
26
%
23
%
21
%
27
%
24
%




The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
997

$
866

$
1,053

$
1,041

$
926

$
806

$
917

$
820

Cost of Goods Sold
864

769

899

861

775

751

929

839

Gross Margin
$
133

$
97

$
154

$
180

$
151

$
55

$
(12
)
$
(19
)
Notable Items Included in Gross Margin
—

(15
)
(6
)
—

—

(9
)
(5
)
(7
)
Adjusted Gross Margin(b)
$
133

$
112

$
160

$
180

$
151

$
64

$
(7
)
$
(12
)
 
 
 
 
 
 
 
 
 
SG&A
15

13

11

11

13

7

7

9

Other operating (income) expense(r)
47

6

1

(1
)
55

4

374

42

 
 
 
 
 
 
 
 
 
Operating Earnings
$
71

$
78

$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
Plus: Depreciation, Depletion and Amortization
89

99

102

101

101

103

105

109

Plus: Accretion Expense
5

9

10

10

8

12

10

12

Plus: Foreign Exchange Gain (Loss)
1

4

1

(1
)
7

2

(2
)
4

Plus: Other Income (Expense)
(1
)
(5
)
(3
)
(7
)
—

1

—

12

Plus: Equity in net earnings (loss) of nonconsolidated companies
1

(4
)
1

(2
)
(1
)
—

(12
)
(23
)
Less: Earnings (loss) from Consolidated Noncontrolling Interests
2

(1
)
1

2

(1
)
1

5

5

Plus: Notables Items
38

16

(1
)
8

41

7

371

6

Adjusted EBITDA(b)
$
201

$
198

$
251

$
277

$
240

$
168

$
74

$
45

 
 
 
 
 
 
 
 
 
Capital expenditures
$
110

$
100

$
92

$
103

$
119

$
120

$
122

$
124

Gross Margin $ / tonne of finished product
$
53

$
49

$
67

$
80

$
81

$
31

$
(7
)
$
(10
)
Adjusted Gross Margin $ / tonne of finished product
$
53

$
57

$
70

$
80

$
81

$
36

$
(5
)
$
(6
)
Gross margin as a percent of sales
13
%
11
%
15
%
17
%
16
%
7
%
(1
)%
(2
)%
 
 
 
 
 
 
 
 
 
Freight included in finished goods (in millions)
$
107

$
77

$
100

$
92

$
86

$
74

$
91

$
86

Idle/Turnaround costs (excluding notable items)
$
27

$
27

$
24

$
35

$
47

$
37

$
43

$
18

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
DAP/MAP
1,663

1,295

1,332

1,261

1,059

1,141

1,275

1,311

Specialty(f)
833

650

970

974

817

649

909

883

Total Finished Product(d)
2,496

1,945

2,302

2,235

1,876

1,790

2,184

2,194

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
399

$
431

$
450

$
454

$
479

$
442

$
398

$
355

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Total tonnes produced(h)
2,322

2,045

2,081

2,115

2,117

1,992

2,050

2,111

Operating Rate(i)
79
%
84
%
86
%
87
%
87
%
82
%
85
 %
87
 %
 
 
 
 
 
 
 
 
 
Realized costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia (tonne)(j)
$
298

$
344

$
325

$
329

$
343

$
352

$
337

$
306

Sulfur (long ton)(k)
$
97

$
128

$
139

$
137

$
149

$
153

$
138

$
119

Blended rock
$
55

$
55

$
59

$
57

$
59

$
61

$
63

$
65

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs, production / tonne
$
64

$
64

$
64

$
63

$
61

$
63

$
67

$
65

U.S. mined rock costs, cash produced / tonne
$
35

$
35

$
36

$
40

$
43

$
43

$
40

$
41





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
496

$
404

$
569

$
609

$
592

$
504

$
599

$
616

Cost of Goods Sold
383

301

437

448

390

318

418

458

Gross Margin
$
114

$
103

$
132

$
161

$
202

$
186

$
181

$
158

Notable Items Included in Gross Margin
—

(5
)
(4
)
—

—

—

—

(12
)
Adjusted Gross Margin(b)
$
114

$
108

$
136

$
161

$
202

$
186

$
181

$
170

 
 
 
 
 
 
 
 
 
SG&A
10

8

9

8

10

6

5

6

Other operating (income) expense
7

3

2

4

43

4

2

4

 
 
 
 
 
 
 
 
 
Operating Earnings
$
97

$
92

$
121

$
149

$
149

$
176

$
174

$
148

Plus: Depreciation, Depletion and Amortization
72

76

73

73

80

78

79

63

Plus: Accretion Expense
1

1

1

1

1

1

1

3

Plus: Foreign Exchange Gain (Loss)
(13
)
(30
)
(23
)
22

(86
)
37

26

(20
)
Plus: Other Income (Expense)
—

—

—

—

1

1

—

1

Plus: Notable Items
13

35

27

(22
)
125

(37
)
(26
)
20

Adjusted EBITDA(b)
$
170

$
174

$
199

$
223

$
270

$
256

$
254

$
215

 
 
 
 
 
 
 
 
 
Capital expenditures
$
103

$
104

$
80

$
98

$
148

$
140

$
130

$
153

Gross Margin $ / tonne of finished product
$
51

$
61

$
56

$
66

$
88

$
100

$
84

$
68

Adjusted Gross Margin $ / tonne of finished product
$
51

$
64

$
58

$
66

$
88

$
100

$
84

$
73

Gross margin as a percent of sales
23
%
25
%
23
%
26
%
34
%
37
%
30
%
26
%
 
 
 
 
 
 
 
 
 
Supplemental Cost Information
 
 
 
 
 
 
 
 
Canadian resource taxes
$
19

$
26

$
34

$
41

$
59

$
47

$
56

$
58

Royalties
$
9

$
8

$
9

$
10

$
12

$
11

$
11

$
9

Brine inflow expenses(s)
$
36

$
39

$
39

$
37

$
39

$
36

$
36

$
32

Freight(l)
$
80

$
71

$
87

$
84

$
71

$
53

$
68

$
79

Idle/Turnaround costs (excluding notable items)
$
—

$
5

$
15

$
37

$
13

$
11

$
25

$
49

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
MOP
2,026

1,525

2,125

2,187

2,143

1,729

1,919

2,099

Specialty(m)
191

165

239

241

158

132

244

222

Total Finished Product(d)
2,217

1,690

2,364

2,428

2,301

1,861

2,163

2,321

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
224

$
239

$
241

$
251

$
257

$
271

$
277

$
266

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Production Volume
2,149

2,275

2,151

2,220

2,593

2,254

2,180

1,771

Operating Rate
87
%
87
%
82
%
85
%
99
%
86
%
83
%
67
%
 
 
 
 
 
 
 
 
 
MOP cash costs of production including brine / production tonne(n)
$
87

$
86

$
85

$
79

$
72

$
84

$
83

$
97

MOP cash costs of brine management / production tonne
$
14

$
15

$
16

$
14

$
13

$
13

$
14

$
15

 
 
 
 
 
 
 
 
 
Average CAD / USD
$
1.270

$
1.264

$
1.291

$
1.307

$
1.322

$
1.329

$
1.338

$
1.320





The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
520

$
665

$
713

$
1,400

$
969

$
698

$
833

$
1,388

Cost of Goods Sold
487

606

660

1,248

851

646

798

1,256

Gross Margin
$
32

$
59

$
53

$
152

$
118

$
52

$
35

$
132

Notable Items Included in Gross Margin
—

—

—

—

—

—

—

—

Adjusted Gross Margin(b)
$
32

$
59

$
53

$
152

$
118

$
52

$
35

$
132

 
 
 
 
 
 
 
 
 
SG&A
22

21

26

23

24

22

22

23

Other operating (income) expense
1

25

10

6

9

3

11

11

 
 
 
 
 
 
 
 
 
Operating Earnings
$
10

$
13

$
17

$
123

$
85

$
27

$
2

$
98

Plus: Depreciation, Depletion and Amortization
4

37

37

36

49

32

32

34

Plus: Accretion Expense
—

2

1

2

2

2

2

1

Plus: Foreign Exchange Gain (Loss)
(19
)
(5
)
(57
)
(21
)
(2
)
(9
)
(3
)
(39
)
Plus: Other Income (Expense)
(1
)
—

(1
)
(1
)
1

(2
)
(2
)
(2
)
Less: Earnings from Consolidated Noncontrolling Interests
1

—

—

1

2

—

—

1

Plus: Notable Items
19

21

63

25

5

12

7

35

Adjusted EBITDA(b)
$
13

$
68

$
60

$
163

$
138

$
62

$
38

$
126

 
 
 
 
 
 
 
 
 
Capital expenditures
$
16

$
18

$
29

$
40

$
61

$
53

$
41

$
43

Gross Margin $ / tonne of finished product
$
23

$
37

$
29

$
42

$
56

$
34

$
17

$
39

Adjusted Gross Margin $ / tonne of finished product
$
23

$
37

$
29

$
42

$
56

$
34

$
17

$
39

Gross margin as a percent of sales
6
%
9
%
7
%
11
%
12
%
8
%
4
%
10
%
Idle/Turnaround costs (excluding notable items)
$
—

$
5

$
23

$
25

$
6

$
15

$
36

$
28

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Phosphate produced in Brazil
85

427

636

1,214

570

412

763

846

Potash produced in Brazil
—

99

66

82

75

72

81

88

Purchased nutrients for distribution(q)
1,314

1,058

1,144

2,299

1,463

1,044

1,257

2,490

Total Finished Product
1,399

1,584

1,846

3,595

2,108

1,528

2,101

3,424

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
372

$
420

$
386

$
389

$
460

$
457

$
396

$
405

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Total tonnes produced(o)
—

987

822

920

1,019

889

687

765

Operating Rate
—
%
81
%
67
%
75
%
82
%
72
%
56
%
62
%
 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
150

70

216

97

156

162

301

201

MicroEssentials® from Mosaic
55

182

392

394

90

202

356

294

Potash from Mosaic/Canpotex
346

389

770

841

361

452

558

868

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs in BRL, production / tonne
R$
—

R$
262

R$
264

R$
268

R$
268

R$
285

R$
379

R$
351

Potash cash conversion costs in BRL, production / tonne
R$
—

R$
567

R$
946

R$
513

R$
651

R$
516

R$
613

R$
665

Mined rock costs in BRL, cash produced / tonne
R$
—

R$
335

R$
335

R$
346

R$
369

R$
344

R$
336

R$
299

 
 
 
 
 
 
 
 
 
Average BRL / USD
$
3.308

$
3.246

$
3.604

$
3.955

$
3.804

$
3.771

$
3.920

$
3.969






The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)

 
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
79

$
(1
)
$
(130
)
$
(122
)
$
34

$
(108
)
$
(172
)
$
(71
)
Cost of Goods Sold
78

15

(86
)
(125
)
39

(125
)
(195
)
(80
)
Gross Margin (Loss)
$
1

$
(16
)
$
(44
)
$
3

$
(5
)
$
17

$
23

$
9

Notable items Included in Gross Margin
(17
)
(12
)
(34
)
11

2

25

7

(7
)
Adjusted Gross Margin (Loss)(b)
$
18

$
(4
)
$
(10
)
$
(8
)
$
(7
)
$
(8
)
$
16

$
16

 
 
 
 
 
 
 
 
 
SG&A
37

52

33

37

43

59

44

40

Other operating (income) expense
15

34

7

15

11

3

4

5

 
 
 
 
 
 
 
 
 
Operating Earnings (Loss)
$
(51
)
$
(102
)
$
(84
)
$
(49
)
$
(59
)
$
(45
)
$
(25
)
$
(36
)
Plus: Depreciation, Depletion and Amortization
7

5

5

5

5

5

5

5

Plus: Share-Based Compensation Expense
3

15

7

3

2

15

7

2

Plus: Foreign Exchange Gain (Loss)
5

(1
)
—

(2
)
2

(7
)
—

1

Plus: Other Income (Expense)
—

(2
)
2

(1
)
(2
)
(2
)
(2
)
(2
)
Plus: Equity in net earnings (loss) of nonconsolidated companies
—

—

—

—

—

—

1

—

Less: Earnings (Loss) from Consolidated Noncontrolling Interests
(2
)
(1
)
(1
)
(1
)
(2
)
(2
)
(2
)
(2
)
Plus: Notable Items
25

43

39

2

5

(24
)
(5
)
8

Adjusted EBITDA(b)
$
(9
)
$
(41
)
$
(30
)
$
(41
)
$
(45
)
$
(56
)
$
(17
)
$
(20
)
 
 
 
 
 
 
 
 
 
Elimination of profit in inventory income (loss) included in COGS
$
(18
)
$
(8
)
$
(21
)
$
(7
)
$
(7
)
$
(12
)
$
13

$
28

Unrealized gain (loss) on derivatives included in COGS
$
(17
)
$
(12
)
$
(34
)
$
11

$
2

$
25

$
7

$
(6
)
 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
497

266

348

311

438

249

333

348

Average finished product selling price (destination)(g)
$
387

$
333

$
396

$
377

$
431

$
372

$
399

$
385

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
50

—

22

47

47

98

52

89

MicroEssentials® from Mosaic
68

—

8

—

44

38

15

—

Potash from Mosaic/Canpotex
198

240

108

125

278

257

253

180






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
Q3 2019
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (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(p) (in millions)
 
EPS Impact (per basic 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
)
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.
Q1 2019
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per diluted share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
23

 
$
(6
)
 
$
0.05

Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
25

 
(7
)
 
0.05

Louisiana gypstack costs
Phosphates
Cost of goods sold
 
(9
)
 
2

 
(0.02
)
Integration costs
Corporate and Other
Other operating income (expense)
 
(5
)
 
1

 
(0.01
)
Costs to capture synergies
Mosaic Fertilizantes
Other operating income (expense)
 
(3
)
 
1

 
(0.01
)
Earn-out obligation
Corporate and Other
Other operating income (expense)
 
11

 
—

 
0.03

Total Notable Items
 
 
 
$
42

 
$
(9
)
 
$
0.09





Q4 2018
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per diluted share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(79
)
 
$
11

 
$
(0.17
)
Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
2

 
—

 
—

Integration costs
Corporate and Other
Other operating income (expense)
 
(6
)
 
1

 
(0.01
)
Costs to capture synergies
Mosaic Fertilizantes
Other operating income (expense)
 
(3
)
 
—

 
(0.01
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
(33
)
 
(0.09
)
Earn-out obligation
Corporate and Other
Other operating income (expense)
 
(3
)
 
—

 
(0.01
)
ARO adjustment
Phosphates
Other operating income (expense)
 
(30
)
 
4

 
(0.06
)
Asset write-off
Phosphates
Other operating income (expense)
 
(18
)
 
3

 
(0.04
)
Asset write-off
Potash
Other operating income (expense)
 
(39
)
 
5

 
(0.09
)
Total Notable Items
 
 
 
$
(176
)
 
$
(9
)
 
$
(0.48
)
Q3 2018
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per diluted share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(2
)
 
$
—

 
$
—

Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
11

 
(2
)
 
0.02

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
)
Realized loss on RCRA Trust Securities
Phosphates
Other non-operating income (expense)
 
(7
)
 
1

 
(0.01
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
(29
)
 
(0.08
)
Earn-out obligation
Corporate and Other
Other operating income (expense)
 
(8
)
 
—

 
(0.02
)
Total Notable Items
 
 
 
$
(13
)
 
$
(28
)
 
$
(0.11
)




Q2 2018
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per diluted share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(79
)
 
$
18

 
$
(0.16
)
Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
(34
)
 
8

 
(0.07
)
Integration costs
Corporate and Other
Other operating income (expense)
 
(5
)
 
1

 
(0.01
)
Costs to capture synergies
Mosaic Fertilizantes
Other operating income (expense)
 
(6
)
 
1

 
(0.01
)
Refinement of inventory costing
Potash
Cost of goods sold
 
(4
)
 
1

 
(0.01
)
Refinement of inventory costing
Phosphates
Cost of goods sold
 
(6
)
 
1

 
(0.01
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
13

 
0.04

Sales tax refund
Phosphates
Other operating income (expense)
 
6

 
(1
)
 
0.01

Total Notable Items
 
 
 
$
(128
)
 
$
42

 
$
(0.22
)
Q1 2018
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per diluted share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(32
)
 
$
9

 
$
(0.06
)
Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
(12
)
 
3

 
(0.02
)
Fees related to purchase of Vale assets
Corporate and Other
Other operating income (expense)
 
(18
)
 
5

 
(0.03
)
Integration costs
Corporate and Other
Other operating income (expense)
 
(8
)
 
2

 
(0.02
)
Costs to capture synergies
Mosaic Fertilizantes
Other operating income (expense)
 
(16
)
 
5

 
(0.03
)
Refinement of inventory costing
Potash
Cost of goods sold
 
(5
)
 
2

 
(0.01
)
Refinement of inventory costing
Phosphates
Cost of goods sold
 
(15
)
 
4

 
(0.03
)
Realized loss on RCRA Trust securities
Phosphates
Other non-operating income (expense)
 
(5
)
 
1

 
(0.01
)
Severance
Corporate and Other
Other operating income (expense)
 
(4
)
 
1

 
(0.01
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
48

 
0.13

Total Notable Items
 
 
 
$
(115
)
 
$
80

 
$
(0.09
)






Q4 2017
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(p) (in millions)
 
EPS Impact (per basic share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(27
)
 
$
2

 
$
(0.07
)
Unrealized gain (loss) on derivatives
Corporate and Other
Cost of goods sold
 
(17
)
 
1

 
(0.05
)
Fees related to purchase of Vale assets
Corporate and Other
Other operating income (expense)
 
(12
)
 
—

 
(0.04
)
Discrete tax items relating to changes in US tax laws
Consolidated
(Provision for) benefit from income taxes
 
—

 
(456
)
 
(1.30
)
Other discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
(7
)
 
(0.02
)
Pre-issuance hedging gain (loss)
Consolidated
Interest expense
 
(2
)
 
—

 
—

Restructuring
Phosphates
Other operating income (expense)
 
(20
)
 
2

 
(0.05
)
ARO adjustment
Phosphates
Other operating income (expense)
 
(11
)
 
1

 
(0.03
)
Asset write-off
Phosphates
Other operating income (expense)
 
(8
)
 
1

 
(0.02
)
Resolution of royalty matter
Potash
Cost of goods sold
 
—

 
2

 
0.01

Total Notable Items
 
 
 
$
(97
)
 
$
(454
)
 
$
(1.57
)








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 animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes.
(f)
Includes MicroEssentials and animal feed finished specialty 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)
Starting in Q1 2018, Plant City was excluded from operational capacity.
(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, Aspire and animal feed finished specialty products.
(n)
MOP production cash costs including brine and excluding Canadian resource tax are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period.
(o)
Includes phosphate and potash crop nutrients and animal feed ingredients.
(p)
Tax impact is based on our expected annual effective tax rate.
(q)
Includes sales volumes of phosphate and potash nutrients purchased from other Mosaic segments and Canpotex.
(r)
Q3 2019 and Q2 2019 included the loss on Plant City related to closure costs.
(s)
Starting in Q3 2019, includes approximately $6 million of accelerated depreciation included as a notable item.

 




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. 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)
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Consolidated Net Income (Loss)
$
(431
)
$
42

$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
Less: Consolidated Interest Expense, Net
(40
)
(49
)
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
Plus: Consolidated Depreciation, Depletion & Amortization
172

217

217

215

235

218

221

211

Plus: Accretion Expense
6

12

12

13

11

15

13

16

Plus: Share-Based Compensation Expense
3

15

7

3

2

15

7

2

Plus: Consolidated Provision for (Benefit from) Income Taxes
490

(50
)
4

91

33

46

(52
)
69

Plus: Notable Items
95

115

128

13

176

(42
)
347

69

Consolidated Adjusted EBITDA
$
375

$
399

$
480

$
622

$
603

$
430

$
349

$
366


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) plus equity earnings (loss) 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.