EX-99.2 3 performancedataq12019-exhi.htm EXHIBIT 99.2 - 2019 Q1 PERFORMANCE DATA Exhibit


Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
$
0.28

$
0.65

$
(1.23
)
$
0.11

$
0.18

$
0.64

$
0.29

$
0.34

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

(1.57
)
(0.09
)
(0.22
)
(0.11
)
(0.48
)
0.09

Adjusted diluted net earnings per share(a)
$
0.29

$
0.43

$
0.34

$
0.20

$
0.40

$
0.75

$
0.77

$
0.25

Diluted weighted average # of shares outstanding
352.0

352.2

351.0

384.1

387.2

387.5

387.6

387.4

 
 
 
 
 
 
 
 
 
Total Net Sales
$
1,755

$
1,985

$
2,092

$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

Cost of goods sold
1,562

1,744

1,812

1,691

1,910

2,432

2,055

1,590

Gross Margin
$
192

$
241

$
280

$
243

$
295

$
496

$
466

$
310

SG&A
71

66

83

94

79

79

90

94

Other operating expense
27

(39
)
70

68

20

24

118

14

Operating earnings
$
95

$
214

$
127

$
81

$
196

$
393

$
258

$
202

Interest expense, net
(36
)
(36
)
(40
)
(49
)
(45
)
(41
)
(31
)
(47
)
Consolidated foreign currency gain/(loss)
9

59

(27
)
(32
)
(79
)
(2
)
(79
)
23

Earnings from consolidated companies before income taxes
69

237

59

(7
)
70

342

145

176

Provision for (benefit from) income taxes
(23
)
18

490

(50
)
4

91

33

46

Earnings (loss) from consolidated companies
$
91

$
220

$
(431
)
$
43

$
66

$
251

$
112

$
130

Equity in net earnings (loss) of nonconsolidated companies
6

10

1

(3
)
2

(2
)
(1
)
—

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

2

1

(2
)
—

2

(1
)
(1
)
Net earnings (loss) attributable to Mosaic
$
97

$
228

$
(431
)
$
42

$
68

$
247

$
112

$
131

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

$
(550
)
$
(35
)
$
(86
)
$
(41
)
$
(185
)
$
33

 
 
 
 
 
 
 
 
 
Gross Margin Rate
11
 %
12
%
13
%
13
%
13
%
17
%
18
%
16
%
 
 
 
 
 
 
 
 
 
Effective Tax Rate (including discrete tax)
(33
)%
7
%
828
%
714
%
5
%
26
%
23
%
26
%
Discrete Tax benefit (expense)
$
16

$
5

$
(463
)
$
48

$
13

$
(29
)
$
(33
)
$
—

 
 
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
$
166

$
169

$
172

$
217

$
217

$
215

$
235

$
218

Accretion Expense
$
6

$
6

$
6

$
12

$
12

$
13

$
11

$
15

Share-Based Compensation Expense
$
5

$
4

$
3

$
15

$
7

$
3

$
2

$
15

Notable Items
$
12

$
(93
)
$
95

$
115

$
128

$
13

$
176

$
(42
)
Adjusted EBITDA(b)
$
300

$
368

$
375

$
399

$
480

$
622

$
603

$
430

 
 
 
 
 
 
 
 
 
Net cash provided by (used in) operating activities
$
243

$
136

$
411

$
(71
)
$
807

$
524

$
150

$
(176
)
Cash paid for interest (net of amount capitalized)
67

24

57

11

78

9

76

11

Cash paid for income taxes (net of refunds)
(9
)
(8
)
(53
)
13

14

(13
)
(48
)
94

Net cash used in investing activities
$
(177
)
$
(221
)
$
(25
)
$
(1,220
)
$
(197
)
$
(244
)
$
(284
)
$
(329
)
Capital expenditures
(169
)
(198
)
(230
)
(223
)
(201
)
(241
)
(289
)
(314
)
Net cash (used in) provided by financing activities
$
(85
)
$
94

$
1,090

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

Cash dividends paid
(53
)
(53
)
(9
)
(10
)
(10
)
(10
)
(10
)
(10
)
Effect of exchange rate changes on cash
$
2

$
18

$
(8
)
$
13

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

Net change in cash and cash equivalents
$
(18
)
$
27

$
1,468

$
(1,491
)
$
375

$
(28
)
$
(180
)
$
(469
)
 
 
 
 
 
 
 
 
 
Short-term debt
$
65

$
59

$
6

$
72

$
20

$
26

$
12

$
168

Long-term debt (including current portion)
3,843

3,856

5,222

5,074

4,998

4,584

4,518

4,574

Cash & cash equivalents
661

686

2,154

659

1,035

1,030

848

385

Net debt
$
3,247

$
3,229

$
3,074

$
4,487

$
3,983

$
3,580

$
3,682

$
4,357

 
 
 
 
 
 
 
 
 
Segment Contributions (in millions)
 
 
 
 
 
 
 
 
Phosphates
$
975

$
779

$
997

$
866

$
1,053

$
1,041

$
926

$
806

Potash
468

474

496

404

569

609

592

504

Mosaic Fertilizantes
467

806

520

665

713

1,400

969

698

Corporate and Other(c)
(155
)
(74
)
79

(1
)
(130
)
(122
)
34

(108
)
Total net sales
$
1,755

$
1,985

$
2,092

$
1,934

$
2,205

$
2,928

$
2,521

$
1,900

 
 
 
 
 
 
 
 
 
Phosphates
$
45

$
103

$
71

$
78

$
142

$
170

$
83

$
44

Potash
100

92

97

92

121

149

149

176

Mosaic Fertilizantes
11

38

10

13

17

123

85

27

Corporate and Other(c)
(61
)
(17
)
(51
)
(102
)
(84
)
(49
)
(59
)
(45
)
Consolidated operating earnings
$
95

$
214

$
127

$
81

$
196

$
393

$
258

$
202





 
 
 
 
 
 
 
 
 
Phosphates(d)
2,582

2,110

2,496

1,945

2,302

2,235

1,876

1,790

Potash(d)
2,191

2,219

2,217

1,690

2,364

2,428

2,301

1,861

Mosaic Fertilizantes
1,300

2,178

1,399

1,584

1,846

3,595

2,108

1,528

Corporate and Other
319

333

497

266

348

311

438

249

Total finished product tonnes sold ('000 tonnes)
6,392

6,840

6,609

5,485

6,860

8,569

6,723

5,428

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




The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
975

$
779

$
997

$
866

$
1,053

$
1,041

$
926

$
806

Cost of Goods Sold
898

712

864

769

899

861

775

751

Gross Margin
$
76

$
67

$
133

$
97

$
154

$
180

$
151

$
55

Notable Items Included in Gross Margin
—

—

—

(15
)
(6
)
—

—

(9
)
Adjusted Gross Margin(b)
$
76

$
67

$
133

$
112

$
160

$
180

$
151

$
64

 
 
 
 
 
 
 
 
 
SG&A
14

11

15

13

11

11

13

7

Other operating (income) expense
18

(47
)
47

6

1

(1
)
55

4

 
 
 
 
 
 
 
 
 
Operating Earnings
$
45

$
103

$
71

$
78

$
142

$
170

$
83

$
44

Plus: Depreciation, Depletion and Amortization
83

86

89

99

102

101

101

103

Plus: Accretion Expense
5

5

5

9

10

10

8

12

Plus: Foreign Exchange Gain (Loss)
(4
)
(6
)
1

4

1

(1
)
7

2

Plus: Other Income (Expense)
2

1

(1
)
(5
)
(3
)
(7
)
—

1

Plus: Equity in net earnings (loss) of nonconsolidated companies
5

10

1

(4
)
1

(2
)
(1
)
—

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

2

(1
)
1

2

(1
)
1

Plus: Notables Items
23

(43
)
38

16

(1
)
8

41

7

Adjusted EBITDA(b)
$
161

$
155

$
201

$
198

$
251

$
277

$
240

$
168

 
 
 
 
 
 
 
 
 
Capital expenditures
$
101

$
87

$
110

$
100

$
92

$
103

$
119

$
120

Gross Margin $ / tonne of finished product
$
29

$
32

$
53

$
49

$
67

$
80

$
81

$
31

Adjusted Gross Margin $ / tonne of finished product
$
29

$
32

$
53

$
57

$
70

$
80

$
81

$
36

Gross margin as a percent of sales
8
%
9
%
13
%
11
%
15
%
17
%
16
%
7
%
 
 
 
 
 
 
 
 
 
Freight included in finished goods (in millions)
$
103

$
78

$
107

$
77

$
100

$
92

$
86

$
74

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
DAP/MAP
1,706

1,483

1,663

1,295

1,332

1,261

1,059

1,141

Specialty(f)
876

627

833

650

970

974

817

649

Total Finished Product(d)
2,582

2,110

2,496

1,945

2,302

2,235

1,876

1,790

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
377

$
369

$
399

$
431

$
450

$
454

$
479

$
442

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

2,339

2,322

2,045

2,081

2,115

2,117

1,992

Operating Rate(i)
84
%
80
%
79
%
84
%
86
%
87
%
87
%
82
%
 
 
 
 
 
 
 
 
 
Realized costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia (tonne)(j)
$
373

$
283

$
298

$
344

$
325

$
329

$
343

$
352

Sulfur (long ton)(k)
$
90

$
88

$
97

$
128

$
139

$
137

$
149

$
153

Blended rock
$
58

$
63

$
55

$
55

$
59

$
57

$
59

$
61

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs, production / tonne
$
65

$
68

$
64

$
64

$
64

$
63

$
61

$
63

U.S. mined rock costs, cash produced / tonne
$
40

$
40

$
35

$
35

$
36

$
40

$
43

$
43

 
 
 
 
 
 
 
 
 
Phosphate Rock
 
 
 
 
 
 
 
 
Sales Volumes ('000 tonnes)(l)
—

—

—

360

241

399

400

192

Average rock selling price (destination)(m)
$
—

$
—

$
—

$
79

$
69

$
68

$
67

$
74

Gross margin $ / rock tonne
$
—

$
—

$
—

$
4

$
(3
)
$
3

$
(3
)
$
1

Freight included in rock (in millions)
$
—

$
—

$
—

$
8

$
4

$
3

$
4

$
1





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
468

$
474

$
496

$
404

$
569

$
609

$
592

$
504

Cost of Goods Sold
358

376

383

301

437

448

390

318

Gross Margin
$
110

$
99

$
114

$
103

$
132

$
161

$
202

$
186

Notable Items Included in Gross Margin
—

(10
)
—

(5
)
(4
)
—

—

—

Adjusted Gross Margin(b)
$
110

$
109

$
114

$
108

$
136

$
161

$
202

$
186

 
 
 
 
 
 
 
 
 
SG&A
8

6

10

8

9

8

10

6

Other operating (income) expense
2

1

7

3

2

4

43

4

 
 
 
 
 
 
 
 
 
Operating Earnings
$
100

$
92

$
97

$
92

$
121

$
149

$
149

$
176

Plus: Depreciation, Depletion and Amortization
73

73

72

76

73

73

80

78

Plus: Accretion Expense
1

1

1

1

1

1

1

1

Plus: Foreign Exchange Gain (Loss)
30

55

(13
)
(30
)
(23
)
22

(86
)
37

Plus: Other Income (Expense)
—

—

—

—

—

—

1

1

Plus: Notable Items
(30
)
(45
)
13

35

27

(22
)
125

(37
)
Adjusted EBITDA(b)
$
174

$
175

$
170

$
174

$
199

$
223

$
270

$
256

 
 
 
 
 
 
 
 
 
Capital expenditures
$
61

$
102

$
103

$
104

$
80

$
98

$
148

$
140

Gross Margin $ / tonne of finished product
$
50

$
44

$
51

$
61

$
56

$
66

$
88

$
100

Adjusted Gross Margin $ / tonne of finished product
$
50

$
49

$
51

$
64

$
58

$
66

$
88

$
100

Gross margin as a percent of sales
23
%
21
%
23
%
25
%
23
%
26
%
34
%
37
%
 
 
 
 
 
 
 
 
 
Supplemental Cost Information
 
 
 
 
 
 
 
 
Canadian resource taxes
$
33

$
(5
)
$
19

$
26

$
34

$
41

$
59

$
47

Royalties
$
6

$
52

$
9

$
8

$
9

$
10

$
12

$
11

Brine inflow expenses
$
38

$
37

$
36

$
39

$
39

$
37

$
39

$
36

Freight(n)
$
70

$
69

$
80

$
71

$
87

$
84

$
71

$
53

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
MOP
2,017

2,062

2,026

1,525

2,125

2,187

2,143

1,729

Specialty(o)
174

157

191

165

239

241

158

132

Total Finished Product(d)
2,191

2,219

2,217

1,690

2,364

2,428

2,301

1,861

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
214

$
214

$
224

$
239

$
241

$
251

$
257

$
271

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Production Volume
2,302

2,151

2,149

2,275

2,151

2,220

2,593

2,254

Operating Rate
93
%
87
%
87
%
87
%
82
%
85
%
99
%
86
%
 
 
 
 
 
 
 
 
 
MOP cash costs of production including brine / production tonne(p)
$
77

$
101

$
87

$
86

$
85

$
79

$
72

$
84

MOP cash costs of brine management / production tonne
$
14

$
15

$
14

$
15

$
16

$
14

$
13

$
13

 
 
 
 
 
 
 
 
 
Average CAD / USD
$
1.345

$
1.253

$
1.270

$
1.264

$
1.291

$
1.307

$
1.322

$
1.329





The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
467

$
806

$
520

$
665

$
713

$
1,400

$
969

$
698

Cost of Goods Sold
442

754

487

606

660

1,248

851

646

Gross Margin
$
25

$
52

$
32

$
59

$
53

$
152

$
118

$
52

Notable Items Included in Gross Margin
—

—

—

—

—

—

—

—

Adjusted Gross Margin(b)
$
25

$
52

$
32

$
59

$
53

$
152

$
118

$
52

 
 
 
 
 
 
 
 
 
SG&A
17

18

22

21

26

23

24

22

Other operating (income) expense
(2
)
(3
)
1

25

10

6

9

3

 
 
 
 
 
 
 
 
 
Operating Earnings
$
11

$
38

$
10

$
13

$
17

$
123

$
85

$
27

Plus: Depreciation, Depletion and Amortization
4

4

4

37

37

36

49

32

Plus: Accretion Expense
—

—

—

2

1

2

2

2

Plus: Foreign Exchange Gain (Loss)
(18
)
14

(19
)
(5
)
(57
)
(21
)
(2
)
(9
)
Plus: Other Income (Expense)
(1
)
1

(1
)
—

(1
)
(1
)
1

(2
)
Less: Earnings from Consolidated Noncontrolling Interests
—

2

1

—

—

1

2

—

Plus: Notable Items
18

(14
)
19

21

63

25

5

12

Adjusted EBITDA(b)
$
14

$
40

$
13

$
68

$
60

$
163

$
138

$
62

 
 
 
 
 
 
 
 
 
Capital expenditures
$
5

$
4

$
16

$
18

$
29

$
40

$
61

$
53

Gross Margin $ / tonne of finished product
$
19

$
24

$
23

$
37

$
29

$
42

$
56

$
34

Adjusted Gross Margin $ / tonne of finished product
$
19

$
24

$
23

$
37

$
29

$
42

$
56

$
34

Gross margin as a percent of sales
5
%
6
%
6
%
9
%
7
%
11
%
12
%
8
%
 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Phosphate produced in Brazil
82

85

85

427

636

1,214

570

412

Potash produced in Brazil
—

—

—

99

66

82

75

72

Purchased nutrients
1,218

2,093

1,314

1,058

1,144

2,299

1,463

1,044

Total Finished Product
1,300

2,178

1,399

1,584

1,846

3,595

2,108

1,528

 
 
 
 
 
 
 
 
 
Average finished product selling price (destination)(g)
$
359

$
370

$
372

$
420

$
386

$
389

$
460

$
457

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

—

—

987

822

920

1,019

889

Operating Rate
—
%
—
%
—
%
81
%
67
%
75
%
82
%
72
%
 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
176

164

150

70

216

97

156

162

MicroEssentials® from Mosaic
365

178

55

182

392

394

90

202

Potash from Mosaic/Canpotex
868

451

346

389

770

841

361

452

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

R$
—

R$
—

R$
262

R$
264

R$
268

R$
268

R$
285

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

R$
—

R$
—

R$
567

R$
946

R$
513

R$
651

R$
516

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

R$
—

R$
—

R$
335

R$
335

R$
346

R$
369

R$
344

 
 
 
 
 
 
 
 
 
Average BRL / USD
$
3.215

$
3.168

$
3.308

$
3.246

$
3.604

$
3.955

$
3.804

$
3.771






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

 
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
(155
)
$
(74
)
$
79

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

$
(108
)
Cost of Goods Sold
(136
)
(98
)
78

15

(86
)
(125
)
39

(125
)
Gross Margin (Loss)
$
(19
)
$
23

$
1

$
(16
)
$
(44
)
$
3

$
(5
)
$
17

Notable items Included in Gross Margin
3

2

(17
)
(12
)
(34
)
11

2

25

Adjusted Gross Margin (Loss)(b)
$
(22
)
$
21

$
18

$
(4
)
$
(10
)
$
(8
)
$
(7
)
$
(8
)
 
 
 
 
 
 
 
 
 
SG&A
33

31

37

52

33

37

43

59

Other operating (income) expense
9

9

15

34

7

15

11

3

 
 
 
 
 
 
 
 
 
Operating Earnings (Loss)
$
(61
)
$
(17
)
$
(51
)
$
(102
)
$
(84
)
$
(49
)
$
(59
)
$
(45
)
Plus: Depreciation, Depletion and Amortization
6

5

7

5

5

5

5

5

Plus: Share-Based Compensation Expense
5

4

3

15

7

3

2

15

Plus: Foreign Exchange Gain (Loss)
1

(5
)
5

(1
)
—

(2
)
2

(7
)
Plus: Other Income (Expense)
—

—

—

(2
)
2

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

—

(2
)
(1
)
(1
)
(1
)
(2
)
(2
)
Plus: Notable Items
(4
)
7

25

43

39

2

5

(24
)
Adjusted EBITDA(b)
$
(55
)
$
(6
)
$
(9
)
$
(41
)
$
(30
)
$
(41
)
$
(45
)
$
(56
)
 
 
 
 
 
 
 
 
 
Elimination of profit in inventory income (loss) included in COGS
$
(28
)
$
20

$
(18
)
$
(8
)
$
(21
)
$
(7
)
$
(7
)
$
(12
)
Unrealized gain (loss) on derivatives included in COGS
$
3

$
2

$
(17
)
$
(12
)
$
(34
)
$
11

$
2

$
25

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
319

333

497

266

348

311

438

249

Average finished product selling price (destination)(g)
$
323

$
373

$
387

$
333

$
396

$
377

$
431

$
372

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
232

222

50

—

22

47

47

98

MicroEssentials® from Mosaic
—

—

68

—

8

—

44

38

Potash from Mosaic/Canpotex
86

147

198

240

108

125

278

257






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
Q1 2019
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(r) (in millions)
 
EPS Impact (per 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(r) (in millions)
 
EPS Impact (per 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(r) (in millions)
 
EPS Impact (per 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(r) (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(r) (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(r) (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(r) (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

Change in Canadian tax regulations
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(r) (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
)







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)
Rock sales volumes include intersegment sales.
(m)
Average selling price of all rock sold.
(n)
Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.
(o)
Includes K-Mag, Aspire and animal feed finished specialty products.
(p)
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.
(q)
Includes phosphate and potash crop nutrients and animal feed ingredients.
(r)
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)
Q2 2017
Q3 2017
Q4 2017
Q1 2018
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Consolidated Net Income (Loss)
$
97

$
228

$
(431
)
$
42

$
68

$
247

$
112

$
131

Less: Consolidated Interest Expense, Net
(36
)
(36
)
(40
)
(49
)
(45
)
(41
)
(31
)
(47
)
Plus: Consolidated Depreciation, Depletion & Amortization
166

169

172

217

217

215

235

218

Plus: Accretion Expense
6

6

6

12

12

13

11

15

Plus: Share-Based Compensation Expense
5

4

3

15

7

3

2

15

Plus: Consolidated Provision for (Benefit from) Income Taxes
(23
)
18

490

(50
)
4

91

33

46

Plus: Notable Items
12

(93
)
95

115

128

13

176

(42
)
Consolidated Adjusted EBITDA
$
300

$
368

$
375

$
399

$
480

$
622

$
603

$
430


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.