EX-99.2 3 performancedataq22020-.htm EX-99.2 - 2020 Q2 PERFORMANCE DATA

Exhibit 99.2

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Consolidated data (in millions, except per share)
Diluted net earnings (loss) per share			$	0.64		$	0.29		$	0.34		$	(0.60)		$	(0.11)		$	(2.43)		$	(0.54)		$	0.12
Notable items impact on earnings per share(a)			(0.11)			(0.48)			0.09			(0.72)			(0.19)			(2.14)			(0.48)			0.01
Adjusted diluted net earnings per share(a)			$	0.75		$	0.77		$	0.25		$	0.12		$	0.08		$	(0.29)		$	(0.06)		$	0.11
Diluted weighted average # of shares outstanding			387.5			387.6			387.4			385.8			385.0			378.8			378.8			381.3
Total Net Sales			$	2,928		$	2,521		$	1,900		$	2,177		$	2,753		$	2,076		$	1,798		$	2,045
Cost of goods sold			2,432			2,055			1,590			1,950			2,473			1,996			1,757			1,788
Gross Margin			$	496		$	466		$	310		$	227		$	280		$	80		$	41		$	257
SG&A			79			90			94			78			78			105			68			95
Other operating (income) expense(p) (r)			24			118			14			391			62			1,170			39			76
Operating earnings			$	393		$	258		$	202		$	(242)		$	140		$	(1,195)		$	(66)		$	86
Interest expense, net			(41)			(31)			(47)			(46)			(43)			(47)			(41)			(49)
Consolidated foreign currency gain/(loss)			(2)			(79)			23			21			(54)			31			(214)			34
Earnings from consolidated companies before income taxes			342			145			176			(271)			52			(1,214)			(317)			73
Provision for (benefit from) income taxes			91			33			46			(52)			69			(289)			(133)			(3)
Earnings (loss) from consolidated companies			$	251		$	112		$	130		$	(219)		$	(17)		$	(925)		$	(184)		$	76
Equity in net earnings (loss) of nonconsolidated companies			(2)			(1)			—			(11)			(23)			(25)			(20)			(30)
Less: Net earnings (loss) attributable to noncontrolling interests			2			(1)			(1)			3			4			(29)			(1)			(1)
Net earnings (loss) attributable to Mosaic			$	247		$	112		$	131		$	(233)		$	(44)		$	(921)		$	(203)		$	47
After tax Notable items included in earnings			$	(41)		$	(185)		$	33		$	(277)		$	(72)		$	(810)		$	(182)		$	6
Gross Margin Rate			17		%	18		%	16		%	10		%	10		%	4		%	2		%	13		%
Effective Tax Rate (including discrete tax)			26		%	23		%	26		%	19		%	133		%	24		%	42		%	(4)		%
Discrete Tax benefit (expense)			$	(29)		$	(33)		$	—		$	(10)		$	(16)		$	(41)		$	28		$	3
Depreciation, Depletion and Amortization			$	215		$	235		$	218		$	221		$	211		$	233		$	217		$	215
Accretion Expense			$	13		$	11		$	15		$	13		$	16		$	17		$	18		$	17
Share-Based Compensation Expense			$	3		$	2		$	15		$	7		$	2		$	5		$	(10)		$	8
Notable Items			$	13		$	176		$	(42)		$	347		$	69		$	1,113		$	285		$	20
Adjusted EBITDA(b)			$	624		$	604		$	430		$	360		$	389		$	227		$	234		$	383
Net cash provided by (used in) operating activities			$	524		$	150		$	(176)		$	507		$	486		$	278		$	190		$	809
Cash paid for interest (net of amount capitalized)			9			76			11			92			14			86			14			88
Cash paid for income taxes (net of refunds)			(13)			(48)			94			10			11			(70)			67			(93)
Net cash used in investing activities			$	(244)		$	(284)		$	(329)		$	(359)		$	(327)		$	(347)		$	(270)		$	(258)
Capital expenditures			(241)			(289)			(314)			(295)			(322)			(340)			(264)			(258)
Net cash (used in) provided by financing activities			$	(297)		$	(45)		$	22		$	(143)		$	105		$	(66)		$	698		$	(530)
Cash dividends paid			(10)			(10)			(10)			(19)			(19)			(19)			(19)			(19)
Effect of exchange rate changes on cash			$	(11)		$	(1)		$	14		$	11		$	(24)		$	9		$	(69)		$	(11)
Net change in cash and cash equivalents			$	(28)		$	(180)		$	(469)		$	16		$	240		$	(126)		$	549		$	10
Short-term debt			$	26		$	12		$	168		$	94		$	88		$	42		$	1,008		$	610
Long-term debt (including current portion)			4,584			4,518			4,574			4,585			4,576			4,572			4,572			4,587
Cash & cash equivalents			1,030			848			385			402			641			519			1,069			1,073
Net debt			$	3,580		$	3,682		$	4,357		$	4,277		$	4,023		$	4,095		$	4,511		$	4,124
Segment Contributions (in millions)
Phosphates			$	1,041		$	926		$	806		$	917		$	820		$	698		$	619		$	763
Potash			609			592			504			599			616			395			442			555
Mosaic Fertilizantes			1,400			969			698			833			1,388			864			731			787
Corporate and Other(c)			(122)			34			(108)			(172)			(71)			119			6			(60)
Total net sales			$	2,928		$	2,521		$	1,900		$	2,177		$	2,753		$	2,076		$	1,798		$	2,045
Phosphates			$	170		$	83		$	44		$	(393)		$	(70)		$	(712)		$	(107)		$	(59)
Potash			149			149			176			174			148			(452)			94			124
Mosaic Fertilizantes			123			85			27			2			98			5			29			77
Corporate and Other(c)			(49)			(59)			(45)			(25)			(36)			(36)			(82)			(56)
Consolidated operating earnings			$	393		$	258		$	202		$	(242)		$	140		$	(1,195)		$	(66)		$	86

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Phosphates(d)			2,235			1,876			1,790			2,184			2,194			2,011			1,919			2,235
Potash(d)			2,428			2,301			1,861			2,163			2,321			1,499			1,899			2,559
Mosaic Fertilizantes			3,595			2,108			1,528			2,101			3,424			2,192			2,077			2,558
Corporate and Other			311			438			249			333			348			538			223			501
Total finished product tonnes sold ('000 tonnes)			8,569			6,723			5,428			6,781			8,287			6,240			6,118			7,853
Percent performance products(e)			26		%	23		%	21		%	27		%	24		%	26		%	20		%	26		%

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The Mosaic Company - Phosphates Segment

Selected Calendar Quarter Financial Information

(Unaudited)

			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales			$	1,041		$	926		$	806		$	917		$	820		$	698		$	619		$	763
Cost of Goods Sold			861			775			751			929			839			804			702			745
Gross Margin			$	180		$	151		$	55		$	(12)		$	(19)		$	(106)		$	(83)		$	18
Notable Items Included in Gross Margin			—			—			(9)			(5)			(7)			(16)			(5)			(8)
Adjusted Gross Margin(b)			$	180		$	151		$	64		$	(7)		$	(12)		$	(90)		$	(78)		$	26
SG&A			11			13			7			7			9			11			9			10
Other operating (income) expense(r)			(1)			55			4			374			42			595			15			67
Operating Earnings			$	170		$	83		$	44		$	(393)		$	(70)		$	(712)		$	(107)		$	(59)
Plus: Depreciation, Depletion and Amortization			101			101			103			105			109			113			114			113
Plus: Accretion Expense			10			8			12			10			12			12			13			11
Plus: Foreign Exchange Gain (Loss)			(1)			7			2			(2)			4			(2)			14			2
Plus: Other Income (Expense)			(7)			—			1			—			12			—			5			—
Less: Earnings (loss) from Consolidated Noncontrolling Interests			2			(1)			1			5			5			(29)			—			—
Plus: Notables Items			8			41			7			371			6			593			(11)			57
Adjusted EBITDA(b)			$	279		$	241		$	168		$	86		$	68		$	33		$	28		$	124
Capital expenditures			$	103		$	119		$	120		$	122		$	124		$	179		$	138		$	122
Gross Margin $ / tonne of finished product			$	80		$	81		$	31		$	(7)		$	(10)		$	(52)		$	(43)		$	7
Adjusted Gross Margin $ / tonne of finished product			$	80		$	81		$	36		$	(5)		$	(6)		$	(45)		$	(41)		$	12
Gross margin as a percent of sales			17		%	16		%	7		%	(1)		%	(2)		%	(15)		%	(13)		%	2		%
Freight included in finished goods (in millions)			$	92		$	86		$	74		$	91		$	86		$	94		$	76		$	86
Idle/Turnaround costs (excluding notable items)			$	35		$	47		$	37		$	43		$	18		$	39		$	35		$	13
Operating Data
Sales volumes ('000 tonnes)(d)
DAP/MAP			1,261			1,059			1,141			1,275			1,311			1,276			1,332			1,166
Performance & other products(f)			974			817			649			909			883			735			587			1,069
Total Finished Product(d)			2,235			1,876			1,790			2,184			2,194			2,011			1,919			2,235
DAP selling price (fob plant)(t)			$	413		$	416		$	373		$	345		$	310		$	266		$	274		$	287
Average finished product selling price (destination)(g)			$	454		$	479		$	442		$	398		$	355		$	329		$	317		$	338
Production Volumes ('000 tonnes)
Total tonnes produced(h)			2,115			2,117			1,992			2,050			2,111			1,924			1,861			2,117
Operating Rate(i)			87		%	87		%	82		%	85		%	87		%	79		%	75		%	85		%
Raw Materials
Ammonia used in production			$	315		$	328		$	299		$	300		$	308		$	272		$	276		$	309
% manufactured ammonia used in production			18		%	15		%	16		%	20		%	15		%	4		%	17		%	19		%
Sulfur used in production			$	967		$	939		$	925		$	951		$	985		$	886		$	816		$	966
% prilled sulfur used in production			17		%	12		%	13		%	17		%	16		%	14		%	13		%	17		%
Realized costs ($/tonne)
Ammonia (tonne)(j)			$	329		$	343		$	352		$	337		$	306		$	305		$	309		$	289
Sulfur (long ton)(k)			$	137		$	149		$	153		$	138		$	119		$	104		$	78		$	76
Blended rock			$	57		$	59		$	61		$	63		$	65		$	61		$	62		$	61
Phosphate cash conversion costs, production / tonne			$	63		$	61		$	63		$	67		$	65		$	64		$	67		$	59
U.S. mined rock costs, cash produced / tonne			$	40		$	43		$	43		$	40		$	41		$	39		$	36		$	36
MWSPC equity earnings (loss)			$	(4)		$	(1)		$	(1)		$	(12)		$	(23)		$	(26)		$	(21)		$	(31)
MWSPC EDBITA - Mosaic interest			$	13		$	5		$	19		$	23		$	13		$	5		$	10		$	(3)
MWSPC total sales tonnes (DAP/MAP/NPK)			—			—			—			481			505			623			546			487

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The Mosaic Company - Potash Segment

Selected Calendar Quarter Financial Information

(Unaudited)

			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales			$	609		$	592		$	504		$	599		$	616		$	395		$	442		$	555
Cost of Goods Sold			448			390			318			418			458			303			333			424
Gross Margin			$	161		$	202		$	186		$	181		$	158		$	92		$	109		$	131
Notable Items Included in Gross Margin			—			—			—			—			(12)			(22)			(22)			(22)
Adjusted Gross Margin(b)			$	161		$	202		$	186		$	181		$	170		$	114		$	131		$	153
SG&A			8			10			6			5			6			6			5			6
Other operating (income) expense(p)			4			43			4			2			4			538			10			1
Operating Earnings			$	149		$	149		$	176		$	174		$	148		$	(452)		$	94		$	124
Plus: Depreciation, Depletion and Amortization			73			80			78			79			63			76			70			70
Plus: Accretion Expense			1			1			1			1			3			2			2			3
Plus: Foreign Exchange Gain (Loss)			22			(86)			37			26			(20)			27			(150)			66
Plus: Other Income (Expense)			—			1			1			—			1			—			1			2
Plus: Notable Items			(22)			125			(37)			(26)			20			506			158			(66)
Adjusted EBITDA(b)			$	223		$	270		$	256		$	254		$	215		$	159		$	175		$	199
Capital expenditures			$	98		$	148		$	140		$	130		$	153		$	117		$	98		$	111
Gross Margin $ / tonne of finished product			$	66		$	88		$	100		$	84		$	68		$	61		$	57		$	51
Adjusted Gross Margin $ / tonne of finished product			$	66		$	88		$	100		$	84		$	73		$	76		$	69		$	60
Gross margin as a percent of sales			26		%	34		%	37		%	30		%	26		%	23		%	25		%	24		%
Supplemental Cost Information
Canadian resource taxes			$	41		$	59		$	47		$	56		$	58		$	13		$	32		$	52
Royalties			$	10		$	12		$	11		$	11		$	9		$	7		$	10		$	9
Brine inflow expenses(s)			$	37		$	39		$	36		$	36		$	32		$	33		$	33		$	26
Freight(l)			$	84		$	71		$	53		$	68		$	79		$	62		$	74		$	85
Idle/Turnaround costs (excluding notable items)			$	37		$	13		$	11		$	25		$	49		$	40		$	3		$	—
Operating Data
Sales volumes ('000 tonnes)(d)
MOP			2,187			2,143			1,729			1,919			2,099			1,313			1,709			2,282
Performance & other products(m)			241			158			132			244			222			186			190			277
Total Finished Product(d)			2,428			2,301			1,861			2,163			2,321			1,499			1,899			2,559
Crop Nutrients North America			978			859			543			761			906			625			832			977
Crop Nutrients International			1,280			1,300			1,171			1,277			1,283			745			947			1,447
Non-Agricultural			170			142			147			125			132			129			120			135
Total Finished Product(d)			2,428			2,301			1,861			2,163			2,321			1,499			1,899			2,559
MOP selling price (fob mine)(u)			$	217		$	231		$	243		$	246		$	235		$	224		$	200		$	180
Average finished product selling price (destination)(g)			$	251		$	257		$	271		$	277		$	266		$	264		$	233		$	217
Production Volumes ('000 tonnes)
Production Volume			2,220			2,593			2,254			2,180			1,771			1,663			2,068			2,198
Operating Rate			85		%	99		%	86		%	83		%	67		%	63		%	85		%	91		%
MOP cash costs of production including brine / production tonne(n)			$	79		$	72		$	84		$	83		$	97		$	87		$	70		$	65

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MOP cash costs of brine management / production tonne			$	14		$	13		$	13		$	14		$	15		$	14		$	11		$	8
Average CAD / USD			$	1.307		$	1.322		$	1.329		$	1.338		$	1.320		$	1.320		$	1.390		$	1.387

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The Mosaic Company - Mosaic Fertilizantes Segment

Selected Calendar Quarter Financial Information

(Unaudited)

			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales			$	1,400		$	969		$	698		$	833		$	1,388		$	864		$	731		$	787
Cost of Goods Sold			1,248			851			646			798			1,256			794			665			686
Gross Margin			$	152		$	118		$	52		$	35		$	132		$	70		$	66		$	101
Notable Items Included in Gross Margin			—			—			—			—			—			—			—			—
Adjusted Gross Margin(b)			$	152		$	118		$	52		$	35		$	132		$	70		$	66		$	101
SG&A			23			24			22			22			23			34			24			19
Other operating (income) expense			6			9			3			11			11			31			13			5
Operating Earnings			$	123		$	85		$	27		$	2		$	98		$	5		$	29		$	77
Plus: Depreciation, Depletion and Amortization			36			49			32			32			34			38			28			27
Plus: Accretion Expense			2			2			2			2			1			3			3			3
Plus: Foreign Exchange Gain (Loss)			(21)			(2)			(9)			(3)			(39)			7			(81)			(27)
Plus: Other Income (Expense)			(1)			1			(2)			(2)			(2)			(2)			(1)			(2)
Less: Earnings from Consolidated Noncontrolling Interests			1			2			—			—			1			1			—			—
Plus: Notable Items			25			5			12			7			35			28			90			31
Adjusted EBITDA(b)			$	163		$	138		$	62		$	38		$	126		$	78		$	68		$	109
Capital expenditures			$	40		$	61		$	53		$	41		$	43		$	46		$	25		$	20
Gross Margin $ / tonne of finished product			$	42		$	56		$	34		$	17		$	39		$	32		$	32		$	39
Adjusted Gross Margin $ / tonne of finished product			$	42		$	56		$	34		$	17		$	39		$	32		$	32		$	39
Gross margin as a percent of sales			11		%	12		%	8		%	4		%	10		%	8		%	9		%	13		%
Idle/Turnaround costs (excluding notable items)			$	25		$	6		$	15		$	36		$	28		$	16		$	4		36
Operating Data
Sales volumes ('000 tonnes)
Phosphate produced in Brazil			1,214			570			412			763			846			584			699			1,161
Potash produced in Brazil			82			75			72			81			88			87			75			71
Purchased nutrients for distribution(q)			2,299			1,463			1,044			1,257			2,490			1,521			1,303			1,326
Total Finished Product			3,595			2,108			1,528			2,101			3,424			2,192			2,077			2,558
Brazil MAP price (Brazil production delivered price to third party)			$	493		$	529		$	483		$	446		$	406		$	365		$	330		$	314
Average finished product selling price (destination)(g)			$	389		$	460		$	457		$	396		$	405		$	394		$	352		$	308
Production Volumes ('000 tonnes)
MAP			191			263			249			73			198			275			289			306
TSP			160			178			157			132			45			102			107			126
SSP			344			380			296			280			263			341			279			331
DCP			129			105			107			86			113			105			128			140
NPK			—			—			—			8			41			29			45			61
Total phosphate tonnes produced			824			926			809			579			660			852			848			964
MOP			96			93			80			108			105			134			106			113
Phosphate operating rate			75		%	82		%	72		%	56		%	62		%	79		%	77		%	88		%
Potash operating rate			56		%	55		%	48		%	64		%	62		%	79		%	77		%	67		%
Realized Costs ($/tonne)
Ammonia/tonne			$	333		$	404		$	410		$	378		$	375		$	332		$	352		$	327
Sulfur (long ton)			$	184		$	199		$	213		$	196		$	178		$	150		$	117		$	100
Blended rock			$	93		$	97		$	102		$	106		$	103		$	94		$	75		$	67

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Purchases ('000 tonnes)
DAP/MAP from Mosaic			97			156			162			301			201			176			154			193
MicroEssentials® from Mosaic			394			90			202			356			294			83			117			407
Potash from Mosaic/Canpotex			841			361			452			558			868			192			293			708
Phosphate cash conversion costs in BRL, production / tonne						R$268			R$285			R$379			R$351			R$289			R$309			R$265
Potash cash conversion costs in BRL, production / tonne						R$651			R$516			R$613			R$665			R$552			R$589			R$661
Mined rock costs in BRL, cash produced / tonne						R$369			R$344			R$336			R$299			R$342			R$312			R$314
Average BRL / USD			$	3.955		$	3.804		$	3.771		$	3.920		$	3.969		$	4.115		$	4.451		$	5.376

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The Mosaic Company - Corporate and Other Segment

Selected Calendar Quarter Financial Information

(Unaudited)

			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Net Sales and Gross Margin (in millions)
Segment income statement
Net Sales			$	(122)		$	34		$	(108)		$	(172)		$	(71)		$	119		$	6		$	(60)
Cost of Goods Sold			(125)			39			(125)			(195)			(80)			95			57			(67)
Gross Margin (Loss)			$	3		$	(5)		$	17		$	23		$	9		$	24		$	(51)		$	7
Notable items Included in Gross Margin			11			2			25			7			(7)			15			(51)			9
Adjusted Gross Margin (Loss)(b)			$	(8)		$	(7)		$	(8)		$	16		$	16		$	9		$	—		$	(2)
SG&A			37			43			59			44			40			54			30			60
Other operating (income) expense			15			11			3			4			5			6			1			3
Operating Earnings (Loss)			$	(49)		$	(59)		$	(45)		$	(25)		$	(36)		$	(36)		$	(82)		$	(56)
Plus: Depreciation, Depletion and Amortization			5			5			5			5			5			6			5			5
Plus: Share-Based Compensation Expense			3			2			15			7			2			5			(10)			8
Plus: Foreign Exchange Gain (Loss)			(2)			2			(7)			—			1			(1)			3			(7)
Plus: Other Income (Expense)			(1)			(2)			(2)			(2)			(2)			(1)			—			4
Less: Earnings (Loss) from Consolidated Noncontrolling Interests			(1)			(2)			(2)			(2)			(2)			(2)			(1)			(1)
Plus: Notable Items			2			5			(24)			(5)			8			(14)			48			(2)
Adjusted EBITDA(b)			$	(41)		$	(45)		$	(56)		$	(18)		$	(20)		$	(43)		$	(37)		$	(49)
Elimination of profit in inventory income (loss) included in COGS			$	(7)		$	(7)		$	(12)		$	13		$	28		$	9		$	2		$	(13)
Unrealized gain (loss) on derivatives included in COGS			$	11		$	2		$	25		$	7		$	(6)		$	15		$	(51)		$	9
Operating Data
Sales volumes ('000 tonnes)			311			438			249			333			348			538			223			501
Average finished product selling price (destination)(g)			$	377		$	431		$	372		$	399		$	385		$	398		$	343		$	321
Purchases ('000 tonnes)
DAP/MAP from Mosaic			47			47			98			52			89			50			—			—
MicroEssentials® from Mosaic			—			44			38			15			—			22			—			—
Potash from Mosaic/Canpotex			125			278			257			253			180			153			367			404

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The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

Notable Items

Q2 2020
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per share)
Foreign currency transaction gain (loss)			Consolidated			Foreign currency transaction gain (loss)						$	34					$	(15)					$	0.05
Unrealized gain (loss) on derivatives			Corporate and Other			Cost of goods sold						9						(4)						0.01
Accelerated depreciation			Potash			Cost of goods sold						(22)						9						(0.03)
Closed and indefinitely idled facility costs			Phosphates			Other operating income (expense)						(12)						5						(0.02)
Closed and indefinitely idled facility costs			Potash			Other operating income (expense)						(7)						3						(0.01)
Realized gain on RCRA Trust Securities			Phosphates			Other non-operating income (expense)						3						(1)						—
Discrete tax items			Consolidated			(Provision for) benefit from income taxes						—						3						0.01
Government mandated mine shutdown			Phosphates			Cost of goods sold						(8)						3						(0.01)
Legal settlement			Potash			Other operating income (expense)						7						(3)						0.01
Write-down of assets			Mosaic Fertilizantes			Other operating income (expense)						(4)						2						(0.01)
ARO adjustment - closed facilities			Phosphates			Other operating income (expense)						(50)						22						(0.07)
Tax Rate Change			Consolidated			(Provision for) benefit from income taxes						—						32						0.08
Total Notable Items												$	(50)					$	56					$	0.01

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Q1 2020
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per share)
Foreign currency transaction gain (loss)			Consolidated			Foreign currency transaction gain (loss)						$	(214)					$	70					$	(0.38)
Unrealized gain (loss) on derivatives			Corporate and Other			Cost of goods sold						(51)						17						(0.09)
Legal contingencies			Mosaic Fertilizantes			Other operating income (expense)						(9)						3						(0.02)
Accelerated depreciation			Potash			Cost of goods sold						(22)						7						(0.03)
Close facility costs			Phosphates			Other operating income (expense)						(8)						2						(0.02)
Close facility costs			Potash			Other operating income (expense)						(8)						3						(0.02)
Realized gain on RCRA Trust Securities			Phosphates			Other non-operating income (expense)						5						(2)						0.01
Discrete tax items			Consolidated			(Provision for) benefit from income taxes						—						28						0.08
Government mandated mine shutdown			Phosphates			Cost of goods sold						(5)						2						(0.01)
Total Notable Items												$	(312)					$	130					$	(0.48)

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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)						—
Miski Mayo flood insurance proceeds			Phosphates			Other operating income (expense)						—						—						—
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.

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Q3 2019
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per basic share)
Foreign currency transaction gain (loss)			Consolidated			Foreign currency transaction gain (loss)						$	(54)					$	16					$	(0.10)
Unrealized gain (loss) on derivatives			Corporate and Other			Cost of goods sold						(7)						2						(0.01)
Louisiana gypstack costs			Phosphates			Cost of goods sold						(7)						2						(0.01)
Integration costs			Corporate and Other			Other operating income (expense)						(2)						1						—
Plant City closure costs			Phosphates			Other operating income (expense)						15						(4)						0.03
ARO adjustment			Phosphates			Other operating income (expense)						(31)						9						(0.06)
Discrete tax items			Consolidated			(Provision for) benefit from income taxes						—						(16)						(0.05)
ARO adjustment			Mosaic Fertilizantes			Other operating income (expense)						4						(1)						0.01
Realized gain on RCRA Trust Securities			Phosphates			Other non-operating income (expense)						13						(4)						0.02
Accelerated depreciation			Potash			Cost of goods sold						(12)						4						(0.02)
Total Notable Items												$	(81)					$	9					$	(0.19)

Note: The tax effect of Plant City closure costs includes an income tax component of 22.9%, which is calculated at the rate specific to those earnings.

Q2 2019
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per 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.

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Q1 2019
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per diluted share)
Foreign currency transaction gain (loss)			Consolidated			Foreign currency transaction gain (loss)						$	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(v) (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)

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Q3 2018
Description			Segment			Line Item						Amount (in millions)						Tax Effect(v) (in millions)						EPS Impact (per diluted share)
Foreign currency transaction gain (loss)			Consolidated			Foreign currency transaction gain (loss)						$	(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)

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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 performance products as a percentage of Phosphate and Potash segment sales tonnes.

(f)Includes MicroEssentials and animal feed finished performance products.

(g)Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China.

(h)Includes crop nutrient dry concentrates and animal feed ingredients.

(i)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)Inlcudes a loss of $369 million related to costs for the permanent closure of Plant City in Q2 2019 and $589 million related to the goodwill impairment in Q4 of 2019.

(s)Starting in Q3 2019, includes approximately $6 million per quarter of accelerated depreciation included as a notable item.

(t)Includes intercompany sales.

(u)Excludes industrial and feed sales.

(v)Tax impact is based on our expected annual effective tax rate.

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The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Mosaic has presented in this Selected Calendar Quarter Financial Information certain non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including: Adjusted Diluted Net Earnings Per Share, Consolidated Adjusted EBITDA, Segment Adjusted EBITDA, and Adjusted Gross Margin. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Each of the non-GAAP financial measures we present is determined as described below.

The non-GAAP financial measures we present should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because these non-GAAP measures, as presented, are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies.

Adjusted Diluted Net Earnings Per Share

Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Notable items impact on diluted net earnings per share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Management believes that adjusted diluted net earnings per share provides securities analysts, investors and others, in addition to management, with useful supplemental information regarding our performance by excluding certain items that may not be indicative of or are unrelated to our core operating results. Management utilizes adjusted diluted net earnings per share in analyzing and assessing Mosaic’s overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted net earnings per share also assists our management in comparing our and our competitors' operating results. Reconciliations of adjusted diluted net earnings per share to diluted net earnings per share for the periods presented are provided under “Consolidated Data” on the first page of this Selected Calendar Quarter Financial Information.

Consolidated Adjusted EBITDA

Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization, asset retirement obligation accretion, share-based compensation expense and provision for/(benefit from) income taxes less equity in net earnings (loss) of nonconsolidated companies, net of dividends. Consolidated Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. Consolidated Adjusted EBITDA is a non-GAAP financial measure that we provide to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Consolidated Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, consolidated Net Income (Loss) as a measure of operating performance. A reconciliation of Consolidated Net Income (Loss) to Consolidated Adjusted EBITDA is provided below.

(in millions)			Q3 2018			Q4 2018			Q1 2019			Q2 2019			Q3 2019			Q4 2019			Q1 2020			Q2 2020
Consolidated Net Income (Loss)			$	247		$	112		$	131		$	(233)		$	(44)		$	(921)		$	(203)		$	47
Less: Consolidated Interest Expense, Net			(41)			(31)			(47)			(46)			(43)			(47)			(41)			(49)
Plus: Consolidated Depreciation, Depletion & Amortization			215			235			218			221			211			233			217			215
Plus: Accretion Expense			13			11			15			13			16			17			17			17
Plus: Share-Based Compensation Expense (Benefit)			3			2			15			7			2			5			(10)			8
Plus: Consolidated Provision for (Benefit from) Income Taxes			91			33			46			(52)			69			(289)			(133)			(3)
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends			(2)			(1)			—			(11)			(23)			(25)			(20)			(30)
Plus: Notable Items			13			176			(42)			347			69			1,113			285			20
Consolidated Adjusted EBITDA			$	624		$	604		$	430		$	360		$	389		$	227		$	234		$	383

Segment Adjusted EBITDA

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Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus asset retirement obligation accretion plus foreign exchange gain (loss) plus other income (expense) less equity earnings (loss) from noncontrolling interests. Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. We provide these non-GAAP financial measures because we believe they are relevant and useful to securities analysts, investors and others because they are part of our internal management reporting and planning process, and our management uses these measures to evaluate the operational performance and valuation of our segments. Management also uses these measures as a method of comparing segment, performance with that of its competitors. Segment Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, segment Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, are the most directly comparable GAAP measures because we do not allocate taxes on a segment basis. Reconciliations of Segment Adjusted EBITDA to segment Operating Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.

Adjusted Gross Margin

Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management believes the adjusted measures provides security analysts, investors, management & others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes adjusted gross margin in analyzing and assessing Mosaic's overall performance for financial and operating decision-making and to forecast and plan for future periods.