EX-99.2 3 performancedataq42019-.htm EXHIBIT 99.2 - PERFORMANCE DATA (2019 Q4) Exhibit


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

$
0.18

$
0.64

$
0.29

$
0.34

$
(0.60
)
$
(0.11
)
$
(2.43
)
Notable items impact on earnings per share(a)
(0.09
)
(0.22
)
(0.11
)
(0.48
)
0.09

(0.72
)
(0.19
)
(2.14
)
Adjusted diluted net earnings per share(a)
$
0.20

$
0.40

$
0.75

$
0.77

$
0.25

$
0.12

$
0.08

$
(0.29
)
Diluted weighted average # of shares outstanding
384.1

387.2

387.5

387.6

387.4

385.8

385.0

378.8

 
 
 
 
 
 
 
 
 
Total Net Sales
$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

$
2,076

Cost of goods sold
1,691

1,910

2,432

2,055

1,590

1,950

2,473

1,996

Gross Margin
$
243

$
295

$
496

$
466

$
310

$
227

$
280

$
80

SG&A
94

79

79

90

94

78

78

105

Other operating (income) expense(t)
68

20

24

118

14

391

62

1,170

Operating earnings
$
81

$
196

$
393

$
258

$
202

$
(242
)
$
140

$
(1,195
)
Interest expense, net
(49
)
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
(47
)
Consolidated foreign currency gain/(loss)
(32
)
(79
)
(2
)
(79
)
23

21

(54
)
31

Earnings from consolidated companies before income taxes
(7
)
70

342

145

176

(271
)
52

(1,214
)
Provision for (benefit from) income taxes
(50
)
4

91

33

46

(52
)
69

(289
)
Earnings (loss) from consolidated companies
$
43

$
66

$
251

$
112

$
130

$
(219
)
$
(17
)
$
(925
)
Equity in net earnings (loss) of nonconsolidated companies
(3
)
2

(2
)
(1
)
—

(11
)
(23
)
(25
)
Less: Net earnings (loss) attributable to noncontrolling interests
(2
)
—

2

(1
)
(1
)
3

4

(29
)
Net earnings (loss) attributable to Mosaic
$
42

$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
$
(921
)
After tax Notable items included in earnings
$
(35
)
$
(86
)
$
(41
)
$
(185
)
$
33

$
(277
)
$
(72
)
$
(810
)
 
 
 
 
 
 
 
 
 
Gross Margin Rate
13
%
13
%
17
%
18
%
16
%
10
%
10
%
4
%
 
 
 
 
 
 
 
 
 
Effective Tax Rate (including discrete tax)
714
%
5
%
26
%
23
%
26
%
19
%
133
%
24
%
Discrete Tax benefit (expense)
$
48

$
13

$
(29
)
$
(33
)
$
—

$
(10
)
$
(16
)
$
(41
)
 
 
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
$
217

$
217

$
215

$
235

$
218

$
221

$
211

$
233

Accretion Expense
$
12

$
12

$
13

$
11

$
15

$
13

$
16

$
17

Share-Based Compensation Expense
$
15

$
7

$
3

$
2

$
15

$
7

$
2

$
5

Notable Items
$
115

$
128

$
13

$
176

$
(42
)
$
347

$
69

$
1,113

Adjusted EBITDA(b)
$
399

$
480

$
622

$
603

$
430

$
349

$
366

$
202

 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
(71
)
$
807

$
524

$
150

$
(176
)
$
507

$
486

$
278

Cash paid for interest (net of amount capitalized)
11

78

9

76

11

92

14

86

Cash paid for income taxes (net of refunds)
13

14

(13
)
(48
)
94

10

11

(70
)
Net cash used in investing activities
$
(1,220
)
$
(197
)
$
(244
)
$
(284
)
$
(329
)
$
(359
)
$
(327
)
$
(347
)
Capital expenditures
(223
)
(201
)
(241
)
(289
)
(314
)
(295
)
(322
)
(340
)
Net cash (used in) provided by financing activities
$
(213
)
$
(170
)
$
(297
)
$
(45
)
$
22

$
(143
)
$
105

$
(66
)
Cash dividends paid
(10
)
(10
)
(10
)
(10
)
(10
)
(19
)
(19
)
(19
)
Effect of exchange rate changes on cash
$
13

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

$
11

$
(24
)
$
9

Net change in cash and cash equivalents
$
(1,491
)
$
375

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

$
240

$
(126
)
 
 
 
 
 
 
 
 
 
Short-term debt
$
72

$
20

$
26

$
12

$
168

$
94

$
88

$
42

Long-term debt (including current portion)
5,074

4,998

4,584

4,518

4,574

4,585

4,576

4,572

Cash & cash equivalents
659

1,035

1,030

848

385

402

641

519

Net debt
$
4,487

$
3,983

$
3,580

$
3,682

$
4,357

$
4,277

$
4,023

$
4,095

 
 
 
 
 
 
 
 
 
Segment Contributions (in millions)
 
 
 
 
 
 
 
 
Phosphates
$
866

$
1,053

$
1,041

$
926

$
806

$
917

$
820

$
698

Potash
404

569

609

592

504

599

616

395

Mosaic Fertilizantes
665

713

1,400

969

698

833

1,388

864

Corporate and Other(c)
(1
)
(130
)
(122
)
34

(108
)
(172
)
(71
)
119

Total net sales
$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

$
2,076

 
 
 
 
 
 
 
 
 
Phosphates
$
78

$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
$
(712
)
Potash
92

121

149

149

176

174

148

(452
)
Mosaic Fertilizantes
13

17

123

85

27

2

98

5

Corporate and Other(c)
(102
)
(84
)
(49
)
(59
)
(45
)
(25
)
(36
)
(36
)
Consolidated operating earnings (loss)
$
81

$
196

$
393

$
258

$
202

$
(242
)
$
140

$
(1,195
)




 
 
 
 
 
 
 
 
 
Phosphates(d)
1,945

2,302

2,235

1,876

1,790

2,184

2,194

2,011

Potash(d)
1,690

2,364

2,428

2,301

1,861

2,163

2,321

1,499

Mosaic Fertilizantes
1,584

1,846

3,595

2,108

1,528

2,101

3,424

2,192

Corporate and Other
266

348

311

438

249

333

348

538

Total finished product tonnes sold ('000 tonnes)
5,485

6,860

8,569

6,723

5,428

6,781

8,287

6,240

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




The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
866

$
1,053

$
1,041

$
926

$
806

$
917

$
820

$
698

Cost of Goods Sold
769

899

861

775

751

929

839

804

Gross Margin
$
97

$
154

$
180

$
151

$
55

$
(12
)
$
(19
)
$
(106
)
Notable Items Included in Gross Margin
(15
)
(6
)
—

—

(9
)
(5
)
(7
)
(16
)
Adjusted Gross Margin(b)
$
112

$
160

$
180

$
151

$
64

$
(7
)
$
(12
)
$
(90
)
 
 
 
 
 
 
 
 
 
SG&A
13

11

11

13

7

7

9

11

Other operating (income) expense(r)
6

1

(1
)
55

4

374

42

595

 
 
 
 
 
 
 
 
 
Operating Earnings
$
78

$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
$
(712
)
Plus: Depreciation, Depletion and Amortization
99

102

101

101

103

105

109

113

Plus: Accretion Expense
9

10

10

8

12

10

12

12

Plus: Foreign Exchange Gain (Loss)
4

1

(1
)
7

2

(2
)
4

(2
)
Plus: Other Income (Expense)
(5
)
(3
)
(7
)
—

1

—

12

—

Plus: Equity in net earnings (loss) of nonconsolidated companies
(4
)
1

(2
)
(1
)
—

(12
)
(23
)
(25
)
Less: Earnings (loss) from Consolidated Noncontrolling Interests
(1
)
1

2

(1
)
1

5

5

(29
)
Plus: Notables Items
16

(1
)
8

41

7

371

6

593

Adjusted EBITDA(b)
$
198

$
251

$
277

$
240

$
168

$
74

$
45

$
8

 
 
 
 
 
 
 
 
 
Capital expenditures
$
100

$
92

$
103

$
119

$
120

$
122

$
124

$
179

Gross Margin $ / tonne of finished product
$
49

$
67

$
80

$
81

$
31

$
(7
)
$
(10
)
$
(52
)
Adjusted Gross Margin $ / tonne of finished product
$
57

$
70

$
80

$
81

$
36

$
(5
)
$
(6
)
$
(45
)
Gross margin as a percent of sales
11
%
15
%
17
%
16
%
7
%
(1
)%
(2
)%
(15
)%
 
 
 
 
 
 
 
 
 
Freight included in finished goods (in millions)
$
77

$
100

$
92

$
86

$
74

$
91

$
86

$
94

Idle/Turnaround costs (excluding notable items)
$
27

$
24

$
35

$
47

$
37

$
43

$
18

$
39

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
DAP/MAP
1,295

1,332

1,261

1,059

1,141

1,275

1,311

1,276

Specialty(f)
650

970

974

817

649

909

883

735

Total Finished Product(d)
1,945

2,302

2,235

1,876

1,790

2,184

2,194

2,011

 
 
 
 
 
 
 
 
 
DAP selling price (fob plant)
$
386

$
399

$
413

$
416

$
373

$
345

$
310

$
266

Average finished product selling price (destination)(g)
$
431

$
450

$
454

$
479

$
442

$
398

$
355

$
329

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Total tonnes produced(h)
2,045

2,081

2,115

2,117

1,992

2,050

2,111

1,924

Operating Rate(i)
84
%
86
%
87
%
87
%
82
%
85
 %
87
 %
79
 %
 
 
 
 
 
 
 
 
 
Raw Materials
 
 
 
 
 
 
 
 
Ammonia used in production (tonnes)
305

307

315

328

299

300

308

272

% manufactured ammonia used in production
19
%
19
%
18
%
15
%
16
%
20
 %
15
 %
4
 %
Sulfur used in production
963

983

967

939

925

951

985

886

% prilled sulfur used in production
16
%
25
%
17
%
12
%
13
%
17
 %
16
 %
14
 %
 
 
 
 
 
 
 
 
 
Realized costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia (tonne)(j)
$
344

$
325

$
329

$
343

$
352

$
337

$
306

$
305

Sulfur (long ton)(k)
$
128

$
139

$
137

$
149

$
153

$
138

$
119

$
104

Blended rock
$
55

$
59

$
57

$
59

$
61

$
63

$
65

$
61

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs, production / tonne
$
64

$
64

$
63

$
61

$
63

$
67

$
65

$
64

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

$
36

$
40

$
43

$
43

$
40

$
41

$
39

 
 
 
 
 
 
 
 
 
MWSPC equity earnings (loss)
$
(5
)
$
1

$
(4
)
$
(1
)
$
(1
)
$
(12
)
$
(23
)
$
(26
)
MWSPC total sales tonnes (DAP/MAP/NPK)
—

—

—

—

—

481

505

623





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
404

$
569

$
609

$
592

$
504

$
599

$
616

$
395

Cost of Goods Sold
301

437

448

390

318

418

458

303

Gross Margin
$
103

$
132

$
161

$
202

$
186

$
181

$
158

$
92

Notable Items Included in Gross Margin
(5
)
(4
)
—

—

—

—

(12
)
(22
)
Adjusted Gross Margin(b)
$
108

$
136

$
161

$
202

$
186

$
181

$
170

$
114

 
 
 
 
 
 
 
 
 
SG&A
8

9

8

10

6

5

6

6

Other operating (income) expense
3

2

4

43

4

2

4

538

 
 
 
 
 
 
 
 
 
Operating Earnings
$
92

$
121

$
149

$
149

$
176

$
174

$
148

$
(452
)
Plus: Depreciation, Depletion and Amortization
76

73

73

80

78

79

63

76

Plus: Accretion Expense
1

1

1

1

1

1

3

2

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

(86
)
37

26

(20
)
27

Plus: Other Income (Expense)
—

—

—

1

1

—

1

—

Plus: Notable Items
35

27

(22
)
125

(37
)
(26
)
20

506

Adjusted EBITDA(b)
$
174

$
199

$
223

$
270

$
256

$
254

$
215

$
159

 
 
 
 
 
 
 
 
 
Capital expenditures
$
104

$
80

$
98

$
148

$
140

$
130

$
153

$
117

Gross Margin $ / tonne of finished product
$
61

$
56

$
66

$
88

$
100

$
84

$
68

$
61

Adjusted Gross Margin $ / tonne of finished product
$
64

$
58

$
66

$
88

$
100

$
84

$
73

$
76

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

$
34

$
41

$
59

$
47

$
56

$
58

$
13

Royalties
$
8

$
9

$
10

$
12

$
11

$
11

$
9

$
7

Brine inflow expenses(s)
$
39

$
39

$
37

$
39

$
36

$
36

$
32

$
33

Freight(l)
$
71

$
87

$
84

$
71

$
53

$
68

$
79

$
62

Idle/Turnaround costs (excluding notable items)
$
5

$
15

$
37

$
13

$
11

$
25

$
49

$
40

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
MOP
1,525

2,125

2,187

2,143

1,729

1,919

2,099

1,313

Specialty(m)
165

239

241

158

132

244

222

186

Total Finished Product(d)
1,690

2,364

2,428

2,301

1,861

2,163

2,321

1,499

 
 
 
 
 
 
 
 
 
Crop Nutrients North America
802

1,004

978

859

543

761

906

625

Crop Nutrients International
714

1,181

1,280

1,300

1,171

1,277

1,283

745

Non-Agricultural
174

179

170

142

147

125

132

129

Total Finished Product(d)
1,690

2,364

2,428

2,301

1,861

2,163

2,321

1,499

 
 
 
 
 
 
 
 
 
MOP selling price (fob mine)
$
198

$
206

$
217

$
231

$
243

$
246

$
235

$
224

Average finished product selling price (destination)(g)
$
239

$
241

$
251

$
257

$
271

$
277

$
266

$
264

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Production Volume
2,275

2,151

2,220

2,593

2,254

2,180

1,771

1,663

Operating Rate
87
%
82
%
85
%
99
%
86
%
83
%
67
%
63
%
 
 
 
 
 
 
 
 
 
MOP cash costs of production including brine / production tonne(n)
$
86

$
85

$
79

$
72

$
84

$
83

$
97

$
87





MOP cash costs of brine management / production tonne
$
15

$
16

$
14

$
13

$
13

$
14

$
15

$
14

 
 
 
 
 
 
 
 
 
Average CAD / USD
$
1.264

$
1.291

$
1.307

$
1.322

$
1.329

$
1.338

$
1.320

$
1.320





The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
665

$
713

$
1,400

$
969

$
698

$
833

$
1,388

$
864

Cost of Goods Sold
606

660

1,248

851

646

798

1,256

794

Gross Margin
$
59

$
53

$
152

$
118

$
52

$
35

$
132

$
70

Notable Items Included in Gross Margin
—

—

—

—

—

—

—

—

Adjusted Gross Margin(b)
$
59

$
53

$
152

$
118

$
52

$
35

$
132

$
70

 
 
 
 
 
 
 
 
 
SG&A
21

26

23

24

22

22

23

34

Other operating (income) expense
25

10

6

9

3

11

11

31

 
 
 
 
 
 
 
 
 
Operating Earnings
$
13

$
17

$
123

$
85

$
27

$
2

$
98

$
5

Plus: Depreciation, Depletion and Amortization
37

37

36

49

32

32

34

38

Plus: Accretion Expense
2

1

2

2

2

2

1

3

Plus: Foreign Exchange Gain (Loss)
(5
)
(57
)
(21
)
(2
)
(9
)
(3
)
(39
)
7

Plus: Other Income (Expense)
—

(1
)
(1
)
1

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

—

1

2

—

—

1

1

Plus: Notable Items
21

63

25

5

12

7

35

28

Adjusted EBITDA(b)
$
68

$
60

$
163

$
138

$
62

$
38

$
126

$
78

 
 
 
 
 
 
 
 
 
Capital expenditures
$
18

$
29

$
40

$
61

$
53

$
41

$
43

$
46

Gross Margin $ / tonne of finished product
$
37

$
29

$
42

$
56

$
34

$
17

$
39

$
32

Adjusted Gross Margin $ / tonne of finished product
$
37

$
29

$
42

$
56

$
34

$
17

$
39

$
32

Gross margin as a percent of sales
9
%
7
%
11
%
12
%
8
%
4
%
10
%
8
%
Idle/Turnaround costs (excluding notable items)
$
5

$
23

$
25

$
6

$
15

$
36

$
28

$
16

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Phosphate produced in Brazil
427

636

1,214

570

412

763

846

584

Potash produced in Brazil
99

66

82

75

72

81

88

87

Purchased nutrients for distribution(q)
1,058

1,144

2,299

1,463

1,044

1,257

2,490

1,521

Total Finished Product
1,584

1,846

3,595

2,108

1,528

2,101

3,424

2,192

 
 
 
 
 
 
 
 
 
Brazil MAP price (Brazil production delivered price to third party)
$
460

$
465

$
493

$
529

$
483

$
446

$
406

$
365

Average finished product selling price (destination)(g)
$
420

$
386

$
389

$
460

$
457

$
396

$
405

$
394

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
MAP
255

254

191

263

249

73

198

275

TSP
158

169

160

178

157

132

45

102

SSP
310

240

344

380

296

280

263

341

DCP
138

129

129

105

107

86

113

105

NPK
—

—

—

—

—

8

41

29

Total phosphate tonnes produced
861

792

824

926

809

579

660

852

MOP
126

30

96

93

80

108

105

134

 
 
 
 
 
 
 
 
 
Phosphate operating rate
81
%
67
%
75
%
82
%
72
%
56
%
62
%
79
%
Potash operating rate
76
%
18
%
56
%
55
%
48
%
64
%
62
%
79
%
 
 
 
 
 
 
 
 
 
Realized Costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia/tonne
$
407

$
368

$
333

$
404

$
410

$
378

$
375

$
332

Sulfur (long ton)
$
204

$
200

$
184

$
199

$
213

$
196

$
178

$
150





Blended rock
$
115

$
102

$
93

$
97

$
102

$
106

$
103

$
94

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
70

216

97

156

162

301

201

176

MicroEssentials® from Mosaic
182

392

394

90

202

356

294

83

Potash from Mosaic/Canpotex
389

770

841

361

452

558

868

192

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs in BRL, production / tonne
R$
262

R$
264

R$
268

R$
268

R$
285

R$
379

R$
351

R$
289

Potash cash conversion costs in BRL, production / tonne
R$
567

R$
946

R$
513

R$
651

R$
516

R$
613

R$
665

R$
552

Mined rock costs in BRL, cash produced / tonne
R$
335

R$
335

R$
346

R$
369

R$
344

R$
336

R$
299

R$
342

 
 
 
 
 
 
 
 
 
Average BRL / USD
$
3.246

$
3.604

$
3.955

$
3.804

$
3.771

$
3.920

$
3.969

$
4.115






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

 
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
(1
)
$
(130
)
$
(122
)
$
34

$
(108
)
$
(172
)
$
(71
)
$
119

Cost of Goods Sold
15

(86
)
(125
)
39

(125
)
(195
)
(80
)
95

Gross Margin (Loss)
$
(16
)
$
(44
)
$
3

$
(5
)
$
17

$
23

$
9

$
24

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

2

25

7

(7
)
15

Adjusted Gross Margin (Loss)(b)
$
(4
)
$
(10
)
$
(8
)
$
(7
)
$
(8
)
$
16

$
16

$
9

 
 
 
 
 
 
 
 
 
SG&A
52

33

37

43

59

44

40

54

Other operating (income) expense
34

7

15

11

3

4

5

6

 
 
 
 
 
 
 
 
 
Operating Earnings (Loss)
$
(102
)
$
(84
)
$
(49
)
$
(59
)
$
(45
)
$
(25
)
$
(36
)
$
(36
)
Plus: Depreciation, Depletion and Amortization
5

5

5

5

5

5

5

6

Plus: Share-Based Compensation Expense
15

7

3

2

15

7

2

5

Plus: Foreign Exchange Gain (Loss)
(1
)
—

(2
)
2

(7
)
—

1

(1
)
Plus: Other Income (Expense)
(2
)
2

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

—

—

—

—

1

—

—

Less: Earnings (Loss) from Consolidated Noncontrolling Interests
(1
)
(1
)
(1
)
(2
)
(2
)
(2
)
(2
)
(2
)
Plus: Notable Items
43

39

2

5

(24
)
(5
)
8

(14
)
Adjusted EBITDA(b)
$
(41
)
$
(30
)
$
(41
)
$
(45
)
$
(56
)
$
(17
)
$
(20
)
$
(43
)
 
 
 
 
 
 
 
 
 
Elimination of profit in inventory income (loss) included in COGS
$
(8
)
$
(21
)
$
(7
)
$
(7
)
$
(12
)
$
13

$
28

$
9

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

$
2

$
25

$
7

$
(6
)
$
15

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
266

348

311

438

249

333

348

538

Average finished product selling price (destination)(g)
$
333

$
396

$
377

$
431

$
372

$
399

$
385

$
398

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

22

47

47

98

52

89

50

MicroEssentials® from Mosaic
—

8

—

44

38

15

—

22

Potash from Mosaic/Canpotex
240

108

125

278

257

253

180

153






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
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 component 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(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
)








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)
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)
Includes a loss of $369 million related to costs for the the permanent closure of Plant City in Q2 2019 and $589 million related to the impairment of goodwill 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)
Excludes industrial and feed sales.
(v)
Tax impact is based on our expected annual effective tax rate.



 




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

$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
$
(921
)
Less: Consolidated Interest Expense, Net
(49
)
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
(47
)
Plus: Consolidated Depreciation, Depletion & Amortization
217

217

215

235

218

221

211

233

Plus: Accretion Expense
12

12

13

11

15

13

16

14

Plus: Share-Based Compensation Expense
15

7

3

2

15

7

2

5

Plus: Consolidated Provision for (Benefit from) Income Taxes
(50
)
4

91

33

46

(52
)
69

(289
)
Plus: Notable Items
115

128

13

176

(42
)
347

69

1,113

Consolidated Adjusted EBITDA
$
399

$
480

$
622

$
603

$
430

$
349

$
366

$
202


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.