EX-99.2 3 performancedataq22018-exhi.htm EXHIBIT 99.2 - 2018 Q2 PERFORMANCE DATA Exhibit


Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
$
0.11

$
0.03

$
—

$
0.28

$
0.65

$
(1.23
)
$
0.11

$
0.18

Notable items impact on earnings per share(a)
(0.30
)
(0.23
)
(0.04
)
(0.01
)
0.22

(1.57
)
(0.09
)
(0.22
)
Adjusted diluted net earnings per share(a)
$
0.41

$
0.26

$
0.04

$
0.29

$
0.43

$
0.34

$
0.20

$
0.40

Diluted weighted average # of shares outstanding
351.5

351.6

350.5

352.0

352.2

351.0

384.1

387.2

 
 
 
 
 
 
 
 
 
Total Net Sales
$
1,952

$
1,862

$
1,578

$
1,755

$
1,985

$
2,092

$
1,934

$
2,205

Cost of goods sold
1,739

1,656

1,449

1,562

1,744

1,812

1,691

1,910

Gross Margin
$
213

$
206

$
130

$
192

$
241

$
280

$
243

$
295

SG&A
67

75

81

71

66

83

94

79

Other operating expense
76

57

19

27

(39
)
70

68

20

Operating earnings
$
70

$
74

$
30

$
95

$
214

$
127

$
81

$
196

Interest expense, net
(26
)
(27
)
(26
)
(36
)
(36
)
(40
)
(49
)
(45
)
Consolidated foreign currency gain/(loss)
(33
)
(30
)
9

9

59

(27
)
(32
)
(79
)
Earnings from consolidated companies before income taxes
12

12

9

69

237

59

(7
)
70

(Benefit from) provision for income taxes
(30
)
(5
)
10

(23
)
18

490

(50
)
4

Earnings from consolidated companies
$
42

$
17

$
(1
)
$
91

$
220

$
(431
)
$
43

$
66

Equity in net earnings (loss) of nonconsolidated companies
(2
)
(3
)
—

6

10

1

(3
)
2

Less: Net earnings (loss) attributable to noncontrolling interests
2

3

—

—

2

1

(2
)
—

Net earnings attributable to Mosaic
$
39

$
12

$
(1
)
$
97

$
228

$
(431
)
$
42

$
68

After tax Notable items included in earnings
$
(105
)
$
(80
)
$
(11
)
$
(5
)
$
79

$
(550
)
$
(35
)
$
(86
)
 
 
 
 
 
 
 
 
 
Gross Margin Rate
11
 %
11
 %
8
%
11
 %
12
%
13
%
13
%
13
%
 
 
 
 
 
 
 
 
 
Effective Tax Rate (including discrete tax)
(245
)%
(47
)%
112
%
(33
)%
7
%
828
%
714
%
5
%
Discrete Tax benefit (expense)
$
2

$
(7
)
$
(9
)
$
16

$
5

$
(463
)
$
48

$
13

 
 
 
 
 
 
 
 
 
Consolidated Depreciation, Depletion and Amortization
$
173

$
165

$
159

$
166

$
169

$
172

$
217

$
217

Consolidated EBITDA(b)
$
208

$
199

$
193

$
277

$
451

$
271

$
257

$
333

Notable items included in Consolidated EBITDA
$
(104
)
$
(78
)
$
(1
)
$
(12
)
$
93

$
(95
)
$
(115
)
$
(128
)
Adjusted EBITDA
$
312

$
277

$
194

$
289

$
358

$
366

$
372

$
461

 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
90

$
323

$
146

$
243

$
136

$
411

$
(71
)
$
807

Cash paid for interest (net of amount capitalized)
3

58

8

67

24

57

11

78

Cash paid for income taxes (net of refunds)
(50
)
(41
)
—

(9
)
(8
)
(53
)
13

14

Net cash used in investing activities
$
(978
)
$
(264
)
$
(245
)
$
(177
)
$
(221
)
$
(25
)
$
(1,220
)
$
(197
)
Capital expenditures
(196
)
(209
)
(224
)
(169
)
(198
)
(230
)
(223
)
(201
)
Net cash (used in) provided by financing activities
$
(112
)
$
(255
)
$
102

$
(85
)
$
94

$
1,090

$
(213
)
$
(170
)
Cash dividends paid
(96
)
(96
)
(96
)
(53
)
(53
)
(9
)
(10
)
(10
)
Effect of exchange rate changes on cash
$
(8
)
$
(12
)
$
3

$
2

$
18

$
(8
)
$
13

$
(65
)
Net change in cash and cash equivalents
$
(1,007
)
$
(208
)
$
6

$
(18
)
$
27

$
1,468

$
(1,491
)
$
375

 
 
 
 
 
 
 
 
 
Short-term debt
$
54

$
—

$
124

$
65

$
59

$
6

$
72

$
20

Long-term debt (including current portion)
3,823

3,818

3,828

3,843

3,856

5,222

5,074

4,998

Cash & cash equivalents
654

673

675

661

686

2,154

659

1,035

Net debt
$
3,223

$
3,145

$
3,276

$
3,247

$
3,229

$
3,074

$
4,487

$
3,983

 
 
 
 
 
 
 
 
 
Segment Contributions (in millions)
 
 
 
 
 
 
 
 
Potash
$
428

$
407

$
414

$
468

$
474

$
496

$
404

$
569

Phosphates
930

896

839

975

779

997

866

1,053

Mosaic Fertilizantes
740

521

427

467

806

520

665

713

Corporate and Other(c)
(146
)
38

(102
)
(155
)
(74
)
79

(1
)
(130
)
Total net sales
$
1,952

$
1,862

$
1,578

$
1,755

$
1,985

$
2,092

$
1,934

$
2,205

 
 
 
 
 
 
 
 
 
Potash
$
7

$
28

$
36

$
85

$
77

$
83

$
74

$
108

Phosphates
6

12

17

30

88

57

60

129

Mosaic Fertilizantes
50

39

11

21

46

10

9

14

Corporate and Other(c)
7

(5
)
(34
)
(42
)
3

(23
)
(62
)
(55
)
Consolidated operating earnings
$
70

$
74

$
30

$
95

$
214

$
127

$
81

$
196

 
 
 
 
 
 
 
 
 




Potash(d)
2,208

1,984

1,973

2,191

2,219

2,217

1,690

2,364

Phosphates(d)
2,521

2,504

2,272

2,582

2,110

2,496

1,945

2,302

Mosaic Fertilizantes
1,922

1,446

646

1,300

2,178

1,399

1,584

1,846

Corporate and Other
290

463

689

319

333

497

266

348

Total finished product tonnes sold ('000 tonnes)
6,941

6,397

5,580

6,392

6,840

6,609

5,485

6,860

Percent specialty(p)
18
 %
19
 %
19
%
22
 %
21
%
18
%
22
%
25
%




The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
930

$
896

$
839

$
975

$
779

$
997

$
866

$
1,053

Cost of Goods Sold
829

812

783

898

712

864

769

899

Gross Margin
$
101

$
84

$
56

$
76

$
67

$
133

$
97

$
154

Notable Items Included in Gross Margin
—

9

—

—

—

—

(15
)
(6
)
Adjusted Gross Margin (excluding notables)
$
101

$
75

$
56

$
76

$
67

$
133

$
112

$
160

 
 
 
 
 
 
 
 
 
SG&A
30

30

30

29

25

29

31

24

Other operating (income) expense
65

42

9

18

(47
)
47

6

1

 
 
 
 
 
 
 
 
 
Operating Earnings
$
6

$
12

$
17

$
30

$
88

$
57

$
60

$
129

Plus: Depreciation, Depletion and Amortization
84

78

80

83

86

89

99

102

Plus: Foreign Exchange Gain (Loss)
2

4

(2
)
(4
)
(6
)
1

4

1

Plus: Other Income (Expense)
—

(10
)
(2
)
2

1

(1
)
(5
)
(3
)
Plus: Equity in net earnings (loss) of nonconsolidated companies
(2
)
(3
)
—

5

10

1

(4
)
1

Less: Earnings (loss) from Consolidated Noncontrolling Interests
2

4

2

(2
)
—

2

(1
)
1

EBITDA(g)
$
88

$
77

$
91

$
118

$
179

$
144

$
155

$
229

Notable Items Included in EBITDA
$
(60
)
$
(33
)
$
(5
)
$
(23
)
$
43

$
(38
)
$
(16
)
$
1

Adjusted EBITDA (excluding notables)
$
148

$
110

$
96

$
141

$
136

$
182

$
171

$
228

 
 
 
 
 
 
 
 
 
Capital expenditures
$
89

$
89

$
103

$
101

$
87

$
110

$
100

$
92

Gross Margin $ / tonne of finished product
$
40

$
34

$
25

$
29

$
32

$
53

$
49

$
67

Adjusted Gross Margin $ / tonne of finished product
$
40

$
30

$
25

$
29

$
32

$
53

$
57

$
70

Gross margin as a percent of sales
11
%
9
%
7
%
8
%
9
%
13
%
11
%
15
%
 
 
 
 
 
 
 
 
 
Freight included in finished goods (in millions)
$
86

$
91

$
79

$
103

$
78

$
107

$
77

$
100

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
DAP/MAP
1,715

1,763

1,486

1,706

1,483

1,663

1,295

1,332

Specialty(k)
806

741

786

876

627

833

650

970

Total Finished Product(d)
2,521

2,504

2,272

2,582

2,110

2,496

1,945

2,302

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(e)
$
369

$
358

$
369

$
377

$
369

$
399

$
431

$
451

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Total tonnes produced(h)
2,461

2,463

2,303

2,461

2,339

2,322

2,045

2,081

Operating Rate(n)
84
%
84
%
79
%
84
%
80
%
79
%
84
%
86
%
 
 
 
 
 
 
 
 
 
Realized costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia (tonne)(i)
$
287

$
259

$
285

$
373

$
283

$
298

$
344

$
325

Sulfur (long ton)(j)
$
93

$
87

$
87

$
90

$
88

$
97

$
128

$
139

Blended rock
$
60

$
58

$
59

$
58

$
63

$
55

$
55

$
59

 
 
 
 
 
 
 
 
 
Cash conversion costs / finished product tonne
$
62

$
65

$
79

$
67

$
68

$
70

$
68

$
64

Cash rock costs consumed / tonne
$
42

$
40

$
40

$
40

$
40

$
35

$
35

$
36

 
 
 
 
 
 
 
 
 
Phosphate Rock
 
 
 
 
 
 
 
 
Sales Volumes ('000 tonnes)(m)
 
 
 
 
 
 
360

209

Average rock selling price (destination)(o)
 
 
 
 
 
 
$
79

$
72

Gross margin $ / rock tonne
 
 
 
 
 
 
$
4

$
(3
)
Freight included in rock (in millions)
 
 
 
 
 
 
$
8

$
4





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
428

$
407

$
414

$
468

$
474

$
496

$
404

$
569

Cost of Goods Sold
388

341

345

358

376

383

301

437

Gross Margin
$
40

$
66

$
69

$
110

$
99

$
114

$
103

$
132

Notable Items Included in Gross Margin
—

—

(3
)
—

(10
)
—

(5
)
(4
)
Adjusted Gross Margin (excluding notables)
$
40

$
66

$
72

$
110

$
109

$
114

$
108

$
136

 
 
 
 
 
 
 
 
 
SG&A
27

30

28

23

21

24

26

22

Other operating (income) expense
6

8

6

2

1

7

3

2

 
 
 
 
 
 
 
 
 
Operating Earnings
$
7

$
28

$
36

$
85

$
77

$
83

$
74

$
108

Plus: Depreciation, Depletion and Amortization
77

77

70

73

73

72

76

73

Plus: Foreign Exchange Gain (Loss)
(24
)
(27
)
8

30

55

(13
)
(30
)
(23
)
Plus: Other Income (Expense)
78

—

—

—

—

—

—

—

EBITDA(g)
$
138

$
78

$
114

$
188

$
205

$
142

$
120

$
158

Notable Items Included in EBITDA
$
(26
)
$
(27
)
$
5

$
30

$
45

$
(13
)
$
(35
)
$
(27
)
Adjusted EBITDA (excluding notables)
$
164

$
105

$
109

$
158

$
160

$
155

$
155

$
185

 
 
 
 
 
 
 
 
 
Capital expenditures
$
99

$
107

$
106

$
61

$
102

$
103

$
104

$
80

Gross Margin $ / tonne of finished product
$
18

$
33

$
35

$
50

$
44

$
51

$
61

$
56

Adjusted Gross Margin $ / tonne of finished product
$
18

$
33

$
37

$
50

$
49

$
51

$
64

$
58

Gross margin as a percent of sales
9
%
16
%
17
%
23
%
21
%
23
%
25
%
23
%
 
 
 
 
 
 
 
 
 
Supplemental Cost Information
 
 
 
 
 
 
 
 
Canadian resource taxes
$
14

$
31

$
23

$
33

$
(5
)
$
19

$
26

$
34

Royalties
$
4

$
5

$
5

$
6

$
52

$
9

$
8

$
9

Brine inflow expenses
$
38

$
36

$
39

$
38

$
37

$
36

$
39

$
39

Freight (f)
$
66

$
63

$
69

$
70

$
69

$
80

$
71

$
70

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
MOP
2,086

1,862

1,832

2,038

2,071

2,044

1,551

2,169

Specialty(l)
122

122

141

153

148

173

139

195

Total Finished Product(d)
2,208

1,984

1,973

2,191

2,219

2,217

1,690

2,364

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(e)
$
194

$
205

$
210

$
214

$
214

$
224

$
239

$
241

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Production Volume
1,662

2,147

2,048

2,302

2,151

2,149

2,275

2,151

Operating Rate
63
%
82
%
83
%
93
%
87
%
87
%
87
%
82
%
 
 
 
 
 
 
 
 
 
MOP cash costs of production including brine / production tonne(q)
$
94

$
74

$
86

$
77

$
101

$
87

$
86

$
85

MOP cash costs of brine management / production tonne
$
23

$
17

$
19

$
17

$
17

$
17

$
17

$
18

 
 
 
 
 
 
 
 
 
Average CAD / USD
$
1.304

$
1.335

$
1.323

$
1.345

$
1.253

$
1.270

$
1.264

$
1.291






The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
740

$
521

$
427

$
467

$
806

$
520

$
665

$
713

Cost of Goods Sold
676

475

409

442

754

487

606

660

Gross Margin
$
65

$
46

$
18

$
25

$
52

$
32

$
59

$
53

Notable Items Included in Gross Margin
—

—

—

—

—

—

—

—

Adjusted Gross Margin (excluding notables)
$
65

$
46

$
18

$
25

$
52

$
32

$
59

$
53

 
 
 
 
 
 
 
 
 
SG&A
17

16

15

17

18

22

25

29

Other operating (income) expense
1

—

(1
)
(2
)
(3
)
1

25

10

 
 
 
 
 
 
 
 
 
Operating Earnings
$
47

$
30

$
5

$
11

$
38

$
10

$
9

$
14

Plus: Depreciation, Depletion and Amortization
4

4

4

4

4

4

37

37

Plus: Foreign Exchange Gain (Loss)
(10
)
(5
)
(1
)
(18
)
14

(19
)
(5
)
(57
)
Plus: Other Income (Expense)
—

(2
)
(3
)
(1
)
1

(1
)
—

(1
)
Less: Earnings from Consolidated Noncontrolling Interests
2

1

1

—

2

1

—

—

EBITDA(g)
$
40

$
26

$
5

$
(4
)
$
55

$
(6
)
$
41

$
(7
)
Notable Items Included in EBITDA
$
(10
)
$
(5
)
$
(1
)
$
(18
)
$
14

$
(19
)
$
(21
)
$
(63
)
Adjusted EBITDA (excluding notables)
$
50

$
31

$
5

$
14

$
40

$
13

$
62

$
56

 
 
 
 
 
 
 
 
 
Capital expenditures
$
5

$
7

$
8

$
5

$
4

$
16

$
18

$
29

Gross Margin $ / tonne of finished product
$
34

$
32

$
16

$
19

$
24

$
23

$
37

$
29

Adjusted Gross Margin $ / tonne of finished product
$
34

$
32

$
16

$
19

$
24

$
23

$
37

$
29

Gross margin as a percent of sales
9
%
9
%
4
%
5
%
6
%
6
%
9
%
7
%
 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Phosphate produced in Brazil
81

79

50

82

85

85

427

636

Potash produced in Brazil
—

—

—

—

—

—

99

66

Purchased nutrients
1,841

1,367

1,089

1,218

2,093

1,314

1,058

1,144

Total Finished Product
1,922

1,446

1,139

1,300

2,178

1,399

1,584

1,846

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(e)
$
385

$
360

$
375

$
359

$
370

$
372

$
420

$
386

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

—

—

—

—

—

987

822

Operating Rate
—
%
—
%
—
%
—
%
—
%
—
%
81
%
67
%
 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
195

175

169

176

164

150

70

216

MicroEssentials® from Mosaic
293

120

314

365

178

55

182

392

Potash from Mosaic/Canpotex
435

284

408

868

451

346

389

770

 
 
 
 
 
 
 
 
 
Average BRL / USD
$
3.244

$
3.298

$
3.144

$
3.215

$
3.168

$
3.308

$
3.246

$
3.604






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

 
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
(146
)
$
39

$
(102
)
$
(155
)
$
(74
)
$
79

$
(1
)
$
(130
)
Cost of Goods Sold
(154
)
28

(88
)
(136
)
(98
)
78

15

(86
)
Gross Margin (Loss)
$
8

$
11

$
(15
)
$
(19
)
$
23

$
1

$
(16
)
$
(44
)
Notable items Included in Gross Margin
(8
)
(4
)
(1
)
3

2

(17
)
(12
)
(34
)
Adjusted Gross Margin (Loss) (excluding notables)
$
16

$
15

$
(14
)
$
(22
)
$
21

$
18

$
(4
)
$
(10
)
 
 
 
 
 
 
 
 
 
SG&A
(8
)
(1
)
8

3

3

9

12

4

Other operating (income) expense
6

9

4

9

9

15

34

7

 
 
 
 
 
 
 
 
 
Operating Earnings (Loss)
$
9

$
3

$
(27
)
$
(31
)
$
11

$
(23
)
$
(62
)
$
(55
)
Plus: Depreciation, Depletion and Amortization
8

6

5

6

5

7

5

5

Plus: Foreign Exchange Gain (Loss)
(1
)
(2
)
3

1

(5
)
5

(1
)
—

Plus: Other Income (Expense)
(78
)
7

—

—

—

—

(2
)
2

Less: Earnings (Loss) from Consolidated Noncontrolling Interests
(3
)
(3
)
(3
)
2

—

(2
)
(1
)
(1
)
EBITDA(g)
$
(59
)
$
17

$
(16
)
$
(26
)
$
11

$
(9
)
$
(59
)
$
(47
)
Notable Items Included in EBITDA
$
(9
)
$
(6
)
$
2

$
4

$
(7
)
$
(25
)
$
(43
)
$
(39
)
Adjusted EBITDA (excluding notables)
$
(50
)
$
23

$
(18
)
$
(30
)
$
18

$
16

$
(16
)
$
(8
)
 
 
 
 
 
 
 
 
 
Elimination of profit in inventory income (loss) included in COGS
$
20

$
12

$
(19
)
$
(28
)
$
20

$
(18
)
$
(8
)
$
(21
)
Unrealized gain (loss) on derivatives included in COGS
$
(8
)
$
(4
)
$
(1
)
$
3

$
2

$
(17
)
$
(12
)
$
(34
)
 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
290

463

196

319

333

497

266

348

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

$
354

$
305

$
323

$
373

$
387

$
333

$
396

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
201

44

—

232

222

50

—

22

MicroEssentials® from Mosaic
10

53

—

—

—

68

—

8

Potash from Mosaic/Canpotex
38

81

242

86

147

198

240

108






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
Q2 2018
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per 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(s) (in millions)
 
EPS Impact (per 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(s) (in millions)
 
EPS Impact (per 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
)




Q3 2017
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
58

 
$
—

 
$
0.17

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

 
—

 
0.01

Fees related to purchase of Vale assets
Corporate and Other
Other operating income (expense)
 
(6
)
 
—

 
(0.02
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
5

 
0.01

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

 
(0.01
)
Gain on sale of land
Phosphates
Other operating income (expense)
 
52

 
—

 
0.15

Resolution of royalties with Saskatchewan government
Potash
Cost of goods sold
 
(10
)
 
(17
)
 
(0.08
)
Asset write-off
Phosphates
Other operating income (expense)
 
(3
)
 
—

 
(0.01
)
Total Notable Items
 
 
 
$
91

 
$
(12
)
 
$
0.22



Q2 2017
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain
Consolidated
Foreign currency transaction gain (loss)
 
$
9

 
$
1

 
$
0.03

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
3

 
—

 
0.01

Fees related to purchase of Vale assets
Corporate & Other
Other operating income (expense)
 
(5
)
 
—

 
(0.02
)
Discrete tax items
Consolidated
(Provision for) benefit from income taxes
 
—

 
16

 
0.04

Pre-issuance hedging loss
Consolidated
Interest Expense
 
(8
)
 
(1
)
 
(0.02
)
Water loss expense
Phosphates
Other operating income (expense)
 
(14
)
 
(1
)
 
(0.04
)
Miski Mayo
Phosphates
Equity in net earnings (loss) of nonconsolidated companies
 
(5
)
 
—

 
(0.01
)
Total Notable Items
 
 
 
$
(20
)
 
$
15

 
$
(0.01
)






Q1 2017
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain
Consolidated
Foreign currency transaction gain (loss)
 
$
9

 
$
(1
)
 
$
0.02

Unrealized loss on derivatives
Corporate & Other
Cost of goods sold
 
(1
)
 
—

 
—

Fees related to purchase of Vale assets
Corporate & Other
Other operating expense
 
(3
)
 
—

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

 
(9
)
 
(0.03
)
Liquidated damages for CF ammonia agreement
Phosphates
Other operating income (expense)
 
(3
)
 
—

 
(0.01
)
Resolution of Canadian tax audit
Potash
Cost of goods sold
 
(3
)
 
—

 
(0.01
)
Total Notable Items
 
 
 
$
(1
)
 
$
(10
)
 
$
(0.04
)
Q4 2016
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction (loss) gain
Consolidated
Foreign currency transaction (loss) gain
 
$
(30
)
 
$
(2
)
 
$
(0.09
)
Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(4
)
 
—

 
(0.01
)
Water loss expense
Phosphates
Other operating expenses
 
(10
)
 
(1
)
 
(0.03
)
ARO adjustment
Phosphates
Other operating expenses
 
(21
)
 
(2
)
 
(0.07
)
Depletion adjustment
Phosphates
Cost of goods sold
 
9

 
1

 
0.03

Pension de-risking
Consolidated
Other operating expenses
 
(6
)
 
—

 
(0.02
)
Costs related to purchase of Vale Fertilizantes Business
Corporate & Other
Other operating expenses
 
(4
)
 
—

 
(0.01
)
Gain on sale of equity investment
Phosphates
Other expense
 
7

 
1

 
0.02

Realized loss on RCRA Trust securities
Phosphates
Other expense
 
(10
)
 
(1
)
 
(0.03
)
Discrete tax items
Consolidated
Benefit from income taxes
 
—

 
(7
)
 
(0.02
)
Total Notable Items
 
 
 
$
(69
)
 
$
(11
)
 
$
(0.23
)




Q3 2016
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(s) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(32
)
 
$
(1
)
 
$
(0.10
)
Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(8
)
 
—

 
(0.02
)
Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
—

 
2

 
0.01

Asset reserve adjustment
Phosphates
Other operating income (expense)
 
4

 
—

 
0.01

New Wales water loss incident
Phosphates
Other operating income (expense)
 
(60
)
 
(2
)
 
(0.18
)
Restructuring
Consolidated
Other operating income (expense)
 
(8
)
 
—

 
(0.02
)
Total Notable Items
 
 
 
$
(104
)
 
$
(1
)
 
$
(0.30
)





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)
The Company defines Consolidated EBITDA, a Non-GAAP measure, as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes, as further described in "Non-GAAP Reconciliations".
(c)
Includes elimination of intersegment sales.
(d)
Finished product sales volumes include intersegment sales.
(e)
Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China.
(f)
Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.
(g)
The Company defines segment EBITDA as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. EBITDA presented on a segment basis is a Non-GAAP financial measure. See "Non-GAAP Reconciliations."
(h)
Includes crop nutrient dry concentrates and animal feed ingredients.
(i)
Amounts are representative of our average ammonia costs in cost of goods sold.
(j)
Amounts are representative of our average sulfur costs in cost of goods sold.
(k)
Includes MicroEssentials and animal feed finished specialty products.
(l)
Includes K-Mag and animal feed finished specialty products.
(m)
Rock sales volumes include intersegment sales.
(n)
Starting in Q1 2018, Plant City was excluded from operational capacity.
(o)
Average selling price of all rock sold.
(p)
Includes MicroEssentials, K-Mag and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes.
(q)
MOP production cash costs including brine 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.
(r)
Includes Phosphate and Potash crop nutrients and animal feed ingredients.
(s)
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 EBITDA, Segment EBITDA, Adjusted EBITDA, Adjusted Gross Margin and Potash Cash COGS/production tonne. 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 EBITDA
Consolidated EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes. 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 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 EBITDA is provided below.
(in millions)
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Consolidated Net Income (Loss)
$
39

$
12

$
(1
)
$
97

$
228

$
(431
)
$
42

$
68

Less: Consolidated Interest Expense, Net
(26
)
(27
)
(26
)
(36
)
(36
)
(40
)
(49
)
(45
)
Plus: Consolidated Depreciation, Depletion & Amortization
173

165

159

166

169

172

217

217

Plus: Consolidated Provision for (Benefit from) Income Taxes
(30
)
(5
)
10

(23
)
18

490

(50
)
4

Consolidated EBITDA(b)
$
208

$
199

$
194

$
276

$
451

$
271

$
257

$
333


Segment EBITDA
EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. 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 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 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 EBITDA and Adjusted Gross Margin
Adjusted EBITDA is defined as EBITDA excluding the impact of notable items. 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 EBITDA and 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.
Potash Cash COGS/production tonne
For the Potash segment, Cash COGS/production tonne is defined as cost of goods sold per sales tonne less depreciation, depletion, amortization, Canadian royalties and resource taxes and freight included in revenue and cost of goods sold.  Cash COGS/production tonne is provided to assist securities analysts, lenders and others in their comparisons of operational performance but should not be considered as an alternative to, or more meaningful than, Potash Cost of Goods Sold as a measure of operating performance.  A reconciliation of Cash COGS/production tonne to Potash Cost of Goods Sold is provided below.
(in millions, except sales tonnes)
Q3 2016
Q4 2016
Q1 2017
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Potash Cost of Goods Sold
$
388

$
341

$
345

$
358

$
376

$
383

$
301

$
437

Less:
 
 
 
 
 
 
 
 
Freight included in revenue & cost of goods sold(f)
66

63

69

70

69

80

71

70

Canadian resource taxes
14

31

23

33

(5
)
19

26

34

Royalties
4

5

5

6

52

9

8

9

Potash Depreciation, Depletion & Amortization
77

77

70

73

73

72

76

73

Cash Cost of Goods Sold
$
227

$
165

$
177

$
176

$
187

$
203

$
120

$
251

Sales tonnes (in thousands of mt)
1,662

2,147

2,048

2,302

2,151

2,149

2,275

2,151

Cash COGS/production tonne
$
94

$
74

$
86

$
77

$
101

$
87

$
86

$
85