EX-99.2 3 performancedataq12020-.htm EXHIBIT 99.2 - 2020 Q1 PERFORMANCE DATA Exhibit


Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
Diluted net earnings (loss) per share
$
0.18

$
0.64

$
0.29

$
0.34

$
(0.60
)
$
(0.11
)
$
(2.43
)
$
(0.54
)
Notable items impact on earnings per share(a)
(0.22
)
(0.11
)
(0.48
)
0.09

(0.72
)
(0.19
)
(2.14
)
(0.48
)
Adjusted diluted net earnings per share(a)
$
0.40

$
0.75

$
0.77

$
0.25

$
0.12

$
0.08

$
(0.29
)
$
(0.06
)
Diluted weighted average # of shares outstanding
387.2

387.5

387.6

387.4

385.8

385.0

378.8

378.8

 
 
 
 
 
 
 
 
 
Total Net Sales
$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

$
2,076

$
1,798

Cost of goods sold
1,910

2,432

2,055

1,590

1,950

2,473

1,996

1,757

Gross Margin
$
295

$
496

$
466

$
310

$
227

$
280

$
80

$
41

SG&A
79

79

90

94

78

78

105

68

Other operating (income) expense(p) (r)
20

24

118

14

391

62

1,170

39

Operating earnings
$
196

$
393

$
258

$
202

$
(242
)
$
140

$
(1,195
)
$
(66
)
Interest expense, net
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
(47
)
(41
)
Consolidated foreign currency gain/(loss)
(79
)
(2
)
(79
)
23

21

(54
)
31

(214
)
Earnings from consolidated companies before income taxes
70

342

145

176

(271
)
52

(1,214
)
(317
)
Provision for (benefit from) income taxes
4

91

33

46

(52
)
69

(289
)
(133
)
Earnings (loss) from consolidated companies
$
66

$
251

$
112

$
130

$
(219
)
$
(17
)
$
(925
)
$
(184
)
Equity in net earnings (loss) of nonconsolidated companies
2

(2
)
(1
)
—

(11
)
(23
)
(25
)
(20
)
Less: Net earnings (loss) attributable to noncontrolling interests
—

2

(1
)
(1
)
3

4

(29
)
(1
)
Net earnings (loss) attributable to Mosaic
$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
$
(921
)
$
(203
)
After tax Notable items included in earnings
$
(86
)
$
(41
)
$
(185
)
$
33

$
(277
)
$
(72
)
$
(810
)
$
(182
)
 
 
 
 
 
 
 
 
 
Gross Margin Rate
13
%
17
%
18
%
16
%
10
%
10
%
4
%
2
%
 
 
 
 
 
 
 
 
 
Effective Tax Rate (including discrete tax)
5
%
26
%
23
%
26
%
19
%
133
%
24
%
42
%
Discrete Tax benefit (expense)
$
13

$
(29
)
$
(33
)
$
—

$
(10
)
$
(16
)
$
(41
)
$
(28
)
 
 
 
 
 
 
 
 
 
Depreciation, Depletion and Amortization
$
217

$
215

$
235

$
218

$
221

$
211

$
233

$
217

Accretion Expense
$
12

$
13

$
11

$
15

$
13

$
16

$
17

$
17

Share-Based Compensation Expense
$
7

$
3

$
2

$
15

$
7

$
2

$
5

$
(10
)
Notable Items
$
128

$
13

$
176

$
(42
)
$
347

$
69

$
1,113

$
285

Adjusted EBITDA(b)
$
480

$
622

$
603

$
430

$
349

$
366

$
202

$
214

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

$
524

$
150

$
(176
)
$
507

$
486

$
278

$
190

Cash paid for interest (net of amount capitalized)
78

9

76

11

92

14

86

14

Cash paid for income taxes (net of refunds)
14

(13
)
(48
)
94

10

11

(70
)
67

Net cash used in investing activities
$
(197
)
$
(244
)
$
(284
)
$
(329
)
$
(359
)
$
(327
)
$
(347
)
$
(270
)
Capital expenditures
(201
)
(241
)
(289
)
(314
)
(295
)
(322
)
(340
)
(264
)
Net cash (used in) provided by financing activities
$
(170
)
$
(297
)
$
(45
)
$
22

$
(143
)
$
105

$
(66
)
$
698

Cash dividends paid
(10
)
(10
)
(10
)
(10
)
(19
)
(19
)
(19
)
(19
)
Effect of exchange rate changes on cash
$
(65
)
$
(11
)
$
(1
)
$
14

$
11

$
(24
)
$
9

$
(69
)
Net change in cash and cash equivalents
$
375

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

$
240

$
(126
)
$
549

 
 
 
 

 
 
 
 
Short-term debt
$
20

$
26

$
12

$
168

$
94

$
88

$
42

$
1,008

Long-term debt (including current portion)
4,998

4,584

4,518

4,574

4,585

4,576

4,572

4,572

Cash & cash equivalents
1,035

1,030

848

385

402

641

519

1,069

Net debt
$
3,983

$
3,580

$
3,682

$
4,357

$
4,277

$
4,023

$
4,095

$
4,511

 
 
 
 
 
 
 
 
 
Segment Contributions (in millions)
 
 
 
 
 
 
 
 
Phosphates
$
1,053

$
1,041

$
926

$
806

$
917

$
820

$
698

$
619

Potash
569

609

592

504

599

616

395

442

Mosaic Fertilizantes
713

1,400

969

698

833

1,388

864

731

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

(108
)
(172
)
(71
)
119

6

Total net sales
$
2,205

$
2,928

$
2,521

$
1,900

$
2,177

$
2,753

$
2,076

$
1,798

 
 
 
 
 
 
 
 
 
Phosphates
$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
$
(712
)
$
(107
)
Potash
121

149

149

176

174

148

(452
)
94

Mosaic Fertilizantes
17

123

85

27

2

98

5

29

Corporate and Other(c)
(84
)
(49
)
(59
)
(45
)
(25
)
(36
)
(36
)
(82
)
Consolidated operating earnings
$
196

$
393

$
258

$
202

$
(242
)
$
140

$
(1,195
)
$
(66
)




 
 
 
 
 
 
 
 
 
Phosphates(d)
2,302

2,235

1,876

1,790

2,184

2,194

2,011

1,919

Potash(d)
2,364

2,428

2,301

1,861

2,163

2,321

1,499

1,899

Mosaic Fertilizantes
1,846

3,595

2,108

1,528

2,101

3,424

2,192

2,077

Corporate and Other
348

311

438

249

333

348

538

223

Total finished product tonnes sold ('000 tonnes)
6,860

8,569

6,723

5,428

6,781

8,287

6,240

6,118

Percent specialty(e)
25
%
26
%
23
%
21
%
27
%
24
%
26
%
20
%




The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)




 
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
1,053

$
1,041

$
926

$
806

$
917

$
820

$
698

$
619

Cost of Goods Sold
899

861

775

751

929

839

804

702

Gross Margin
$
154

$
180

$
151

$
55

$
(12
)
$
(19
)
$
(106
)
$
(83
)
Notable Items Included in Gross Margin
(6
)
—

—

(9
)
(5
)
(7
)
(16
)
5

Adjusted Gross Margin(b)
$
160

$
180

$
151

$
64

$
(7
)
$
(12
)
$
(90
)
$
(78
)
 
 
 
 
 
 
 
 
 
SG&A
11

11

13

7

7

9

11

9

Other operating (income) expense(r)
1

(1
)
55

4

374

42

595

15

 
 
 
 
 
 
 
 
 
Operating Earnings
$
142

$
170

$
83

$
44

$
(393
)
$
(70
)
$
(712
)
$
(107
)
Plus: Depreciation, Depletion and Amortization
102

101

101

103

105

109

113

114

Plus: Accretion Expense
10

10

8

12

10

12

12

13

Plus: Foreign Exchange Gain (Loss)
1

(1
)
7

2

(2
)
4

(2
)
14

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

1

—

12

—

5

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

(2
)
(1
)
—

(12
)
(23
)
(25
)
(20
)
Less: Earnings (loss) from Consolidated Noncontrolling Interests
1

2

(1
)
1

5

5

(29
)
—

Plus: Notables Items
(1
)
8

41

7

371

6

593

(11
)
Adjusted EBITDA(b)
$
251

$
277

$
240

$
168

$
74

$
45

$
8

$
8

 
 
 
 
 
 
 
 
 
Capital expenditures
$
92

$
103

$
119

$
120

$
122

$
124

$
179

$
138

Gross Margin $ / tonne of finished product
$
67

$
80

$
81

$
31

$
(7
)
$
(10
)
$
(52
)
$
(43
)
Adjusted Gross Margin $ / tonne of finished product
$
70

$
80

$
81

$
36

$
(5
)
$
(6
)
$
(45
)
$
(41
)
Gross margin as a percent of sales
15
%
17
%
16
%
7
%
(1
)%
(2
)%
(15
)%
(13
)%
 
 
 
 
 
 
 
 
 
Freight included in finished goods (in millions)
$
100

$
92

$
86

$
74

$
91

$
86

$
94

$
76

Idle/Turnaround costs (excluding notable items)
$
24

$
35

$
47

$
37

$
43

$
18

$
39

$
35

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
DAP/MAP
1,332

1,261

1,059

1,141

1,275

1,311

1,276

1,332

Specialty(f)
970

974

817

649

909

883

735

587

Total Finished Product(d)
2,302

2,235

1,876

1,790

2,184

2,194

2,011

1,919

 
 
 
 
 
 
 
 
 
DAP selling price (fob plant)(t)
$
399

$
413

$
416

$
373

$
345

$
310

$
266

$
274

Average finished product selling price (destination)(g)
$
450

$
454

$
479

$
442

$
398

$
355

$
329

$
317

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Total tonnes produced(h)
2,081

2,115

2,117

1,992

2,050

2,111

1,924

1,861

Operating Rate(i)
86
%
87
%
87
%
82
%
85
 %
87
 %
79
 %
(75
)%
 
 
 
 
 
 
 
 
 
Raw Materials
 
 
 
 
 
 
 
 
Ammonia used in production
$
307

$
315

$
328

$
299

$
300

$
308

$
272

$
276

% manufactured ammonia used in production
19
%
18
%
15
%
16
%
20
 %
15
 %
4
 %
17
 %
Sulfur used in production
$
983

$
967

$
939

$
925

$
951

$
985

$
886

$
816

% prilled sulfur used in production
25
%
17
%
12
%
13
%
17
 %
16
 %
14
 %
13
 %
 
 
 
 
 
 
 
 
 
Realized costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia (tonne)(j)
$
325

$
329

$
343

$
352

$
337

$
306

$
305

$
309

Sulfur (long ton)(k)
$
139

$
137

$
149

$
153

$
138

$
119

$
104

$
78

Blended rock
$
59

$
57

$
59

$
61

$
63

$
65

$
61

$
62

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs, production / tonne
$
64

$
63

$
61

$
63

$
67

$
65

$
64

$
67

U.S. mined rock costs, cash produced / tonne
$
36

$
40

$
43

$
43

$
40

$
41

$
39

$
36

 
 
 
 
 
 
 
 
 
MWSPC equity earnings (loss)
$
1

$
(4
)
$
(1
)
$
(1
)
$
(12
)
$
(23
)
$
(26
)
$
(21
)
MWSPC EDBITA - Mosaic interest
$
23

$
13

$
5

$
19

$
23

$
13

$
5

$
10

MWSPC total sales tonnes (DAP/MAP/NPK)
—

—

—

—

481

505

623

546





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
569

$
609

$
592

$
504

$
599

$
616

$
395

$
442

Cost of Goods Sold
437

448

390

318

418

458

303

333

Gross Margin
$
132

$
161

$
202

$
186

$
181

$
158

$
92

$
109

Notable Items Included in Gross Margin
(4
)
—

—

—

—

(12
)
(22
)
(22
)
Adjusted Gross Margin(b)
$
136

$
161

$
202

$
186

$
181

$
170

$
114

$
131

 
 
 
 
 
 
 
 
 
SG&A
9

8

10

6

5

6

6

5

Other operating (income) expense(p)
2

4

43

4

2

4

538

10

 
 
 
 
 
 
 
 
 
Operating Earnings
$
121

$
149

$
149

$
176

$
174

$
148

$
(452
)
$
94

Plus: Depreciation, Depletion and Amortization
73

73

80

78

79

63

76

70

Plus: Accretion Expense
1

1

1

1

1

3

2

2

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

(86
)
37

26

(20
)
27

(150
)
Plus: Other Income (Expense)
—

—

1

1

—

1

—

1

Plus: Notable Items
27

(22
)
125

(37
)
(26
)
20

506

158

Adjusted EBITDA(b)
$
199

$
223

$
270

$
256

$
254

$
215

$
159

$
175

 
 
 
 
 
 
 
 
 
Capital expenditures
$
80

$
98

$
148

$
140

$
130

$
153

$
117

$
98

Gross Margin $ / tonne of finished product
$
56

$
66

$
88

$
100

$
84

$
68

$
61

$
57

Adjusted Gross Margin $ / tonne of finished product
$
58

$
66

$
88

$
100

$
84

$
73

$
76

$
69

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

$
41

$
59

$
47

$
56

$
58

$
13

$
32

Royalties
$
9

$
10

$
12

$
11

$
11

$
9

$
7

$
10

Brine inflow expenses(s)
$
39

$
37

$
39

$
36

$
36

$
32

$
33

$
33

Freight(l)
$
87

$
84

$
71

$
53

$
68

$
79

$
62

$
74

Idle/Turnaround costs (excluding notable items)
$
15

$
37

$
13

$
11

$
25

$
49

$
40

$
3

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(d)
 
 
 
 
 
 
 
 
MOP
2,125

2,187

2,143

1,729

1,919

2,099

1,313

1,709

Specialty(m)
239

241

158

132

244

222

186

190

Total Finished Product(d)
2,364

2,428

2,301

1,861

2,163

2,321

1,499

1,899

 
 
 
 
 
 
 
 
 
Crop Nutrients North America
1,004

978

859

543

761

906

625

832

Crop Nutrients International
1,181

1,280

1,300

1,171

1,277

1,283

745

947

Non-Agricultural
179

170

142

147

125

132

129

120

Total Finished Product(d)
2,364

2,428

2,301

1,861

2,163

2,321

1,499

1,899

 
 
 
 
 
 
 
 
 
MOP selling price (fob mine)(u)
$
206

$
217

$
231

$
243

$
246

$
235

$
224

$
200

Average finished product selling price (destination)(g)
$
241

$
251

$
257

$
271

$
277

$
266

$
264

$
233

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Production Volume
2,151

2,220

2,593

2,254

2,180

1,771

1,663

2,068

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

$
79

$
72

$
84

$
83

$
97

$
87

$
70





MOP cash costs of brine management / production tonne
$
16

$
14

$
13

$
13

$
14

$
15

$
14

$
11

 
 
 
 
 
 
 
 
 
Average CAD / USD
$
1.291

$
1.307

$
1.322

$
1.329

$
1.338

$
1.320

$
1.320

$
1.390





The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
713

$
1,400

$
969

$
698

$
833

$
1,388

$
864

$
731

Cost of Goods Sold
660

1,248

851

646

798

1,256

794

665

Gross Margin
$
53

$
152

$
118

$
52

$
35

$
132

$
70

$
66

Notable Items Included in Gross Margin
—

—

—

—

—

—

—

—

Adjusted Gross Margin(b)
$
53

$
152

$
118

$
52

$
35

$
132

$
70

$
66

 
 
 
 
 
 
 
 
 
SG&A
26

23

24

22

22

23

34

24

Other operating (income) expense
10

6

9

3

11

11

31

13

 
 
 
 
 
 
 
 
 
Operating Earnings
$
17

$
123

$
85

$
27

$
2

$
98

$
5

$
29

Plus: Depreciation, Depletion and Amortization
37

36

49

32

32

34

38

28

Plus: Accretion Expense
1

2

2

2

2

1

3

3

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

(81
)
Plus: Other Income (Expense)
(1
)
(1
)
1

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

1

2

—

—

1

1

—

Plus: Notable Items
63

25

5

12

7

35

28

90

Adjusted EBITDA(b)
$
60

$
163

$
138

$
62

$
38

$
126

$
78

$
68

 
 
 
 
 
 
 
 
 
Capital expenditures
$
29

$
40

$
61

$
53

$
41

$
43

$
46

$
25

Gross Margin $ / tonne of finished product
$
29

$
42

$
56

$
34

$
17

$
39

$
32

$
32

Adjusted Gross Margin $ / tonne of finished product
$
29

$
42

$
56

$
34

$
17

$
39

$
32

$
32

Gross margin as a percent of sales
7
%
11
%
12
%
8
%
4
%
10
%
8
%
9
%
Idle/Turnaround costs (excluding notable items)
$
23

$
25

$
6

$
15

$
36

$
28

$
16

4

 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
Phosphate produced in Brazil
636

1,214

570

412

763

846

584

699

Potash produced in Brazil
66

82

75

72

81

88

87

75

Purchased nutrients for distribution(q)
1,144

2,299

1,463

1,044

1,257

2,490

1,521

1,303

Total Finished Product
1,846

3,595

2,108

1,528

2,101

3,424

2,192

2,077

 
 
 
 
 
 
 
 
 
Brazil MAP price (Brazil production delivered price to third party)
$
465

$
493

$
529

$
483

$
446

$
406

$
365

$
330

Average finished product selling price (destination)(g)
$
386

$
389

$
460

$
457

$
396

$
405

$
394

$
352

 
 
 
 
 
 
 
 
 
Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
MAP
254

191

263

249

73

198

275

289

TSP
169

160

178

157

132

45

102

107

SSP
240

344

380

296

280

263

341

279

DCP
129

129

105

107

86

113

105

128

NPK
—

—

—

—

8

41

29

45

Total phosphate tonnes produced
792

824

926

809

579

660

852

848

MOP
30

96

93

80

108

105

134

106

 
 
 
 
 
 
 
 
 
Phosphate operating rate
67
%
75
%
82
%
72
%
56
%
62
%
79
%
77
%
Potash operating rate
18
%
56
%
55
%
48
%
64
%
62
%
79
%
77
%
 
 
 
 
 
 
 
 
 
Realized Costs ($/tonne)
 
 
 
 
 
 
 
 
Ammonia/tonne
$
368

$
333

$
404

$
410

$
378

$
375

$
332

$
352

Sulfur (long ton)
$
200

$
184

$
199

$
213

$
196

$
178

$
150

$
117





Blended rock
$
102

$
93

$
97

$
102

$
106

$
103

$
94

$
75

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
216

97

156

162

301

201

176

154

MicroEssentials® from Mosaic
392

394

90

202

356

294

83

117

Potash from Mosaic/Canpotex
770

841

361

452

558

868

192

293

 
 
 
 
 
 
 
 
 
Phosphate cash conversion costs in BRL, production / tonne
R$
264

R$
268

R$
268

R$
285

R$
379

R$
351

R$
289

R$
309

Potash cash conversion costs in BRL, production / tonne
R$
946

R$
513

R$
651

R$
516

R$
613

R$
665

R$
552

R$
589

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

R$
346

R$
369

R$
344

R$
336

R$
299

R$
342

R$
312

 
 
 
 
 
 
 
 
 
Average BRL / USD
$
3.604

$
3.955

$
3.804

$
3.771

$
3.920

$
3.969

$
4.115

$
4.451






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

 
Q2 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
Net Sales
$
(130
)
$
(122
)
$
34

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

$
6

Cost of Goods Sold
(86
)
(125
)
39

(125
)
(195
)
(80
)
95

57

Gross Margin (Loss)
$
(44
)
$
3

$
(5
)
$
17

$
23

$
9

$
24

$
51

Notable items Included in Gross Margin
(34
)
11

2

25

7

(7
)
15

51

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

$
16

$
9

$
—

 
 
 
 
 
 
 
 
 
SG&A
33

37

43

59

44

40

54

30

Other operating (income) expense
7

15

11

3

4

5

6

1

 
 
 
 
 
 
 
 
 
Operating Earnings (Loss)
$
(84
)
$
(49
)
$
(59
)
$
(45
)
$
(25
)
$
(36
)
$
(36
)
$
(82
)
Plus: Depreciation, Depletion and Amortization
5

5

5

5

5

5

6

5

Plus: Share-Based Compensation Expense
7

3

2

15

7

2

5

(10
)
Plus: Foreign Exchange Gain (Loss)
—

(2
)
2

(7
)
—

1

(1
)
3

Plus: Other Income (Expense)
2

(1
)
(2
)
(2
)
(2
)
(2
)
(1
)
—

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

—

—

—

1

—

—

—

Less: Earnings (Loss) from Consolidated Noncontrolling Interests
(1
)
(1
)
(2
)
(2
)
(2
)
(2
)
(2
)
(1
)
Plus: Notable Items
39

2

5

(24
)
(5
)
8

(14
)
48

Adjusted EBITDA(b)
$
(30
)
$
(41
)
$
(45
)
$
(56
)
$
(17
)
$
(20
)
$
(43
)
$
(37
)
 
 
 
 
 
 
 
 
 
Elimination of profit in inventory income (loss) included in COGS
$
(21
)
$
(7
)
$
(7
)
$
(12
)
$
13

$
28

$
9

$
2

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

$
2

$
25

$
7

$
(6
)
$
15

$
(51
)
 
 
 
 
 
 
 
 
 
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
348

311

438

249

333

348

538

223

Average finished product selling price (destination)(g)
$
396

$
377

$
431

$
372

$
399

$
385

$
398

$
343

 
 
 
 
 
 
 
 
 
Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
22

47

47

98

52

89

50

—

MicroEssentials® from Mosaic
8

—

44

38

15

—

22

—

Potash from Mosaic/Canpotex
108

125

278

257

253

180

153

367






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
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
)




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.





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.





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
)




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
)


Q2 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
)
 
$
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
)







Footnotes
 
(a)
Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See “Non-GAAP Reconciliations”.
(b)
See definitions of Adjusted EBITDA and Adjusted Gross Margin under “Non-GAAP Reconciliations”.
(c)
Includes elimination of intersegment sales.
(d)
Finished product sales volumes include intersegment sales.
(e)
Includes MicroEssentials, K-Mag, Aspire and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes.
(f)
Includes MicroEssentials and animal feed finished specialty products.
(g)
Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China.
(h)
Includes crop nutrient dry concentrates and animal feed ingredients.
(i)
Starting in Q1 2018, Plant City was excluded from operational capacity.
(j)
Amounts are representative of our average ammonia costs in cost of goods sold.
(k)
Amounts are representative of our average sulfur costs in cost of goods sold.
(l)
Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.
(m)
Includes K-Mag, Aspire and animal feed finished specialty products.
(n)
MOP production cash costs including brine and excluding Canadian resource tax are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period.
(o)
Includes phosphate and potash crop nutrients and animal feed ingredients.
(p)
Includes $530 million related to the Colonsay write-off in Q4 of 2019.
(q)
Includes sales volumes of phosphate and potash nutrients purchased from other Mosaic segments and Canpotex.
(r)
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.

 




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 2018
Q3 2018
Q4 2018
Q1 2019
Q2 2019
Q3 2019
Q4 2019
Q1 2020
Consolidated Net Income (Loss)
$
68

$
247

$
112

$
131

$
(233
)
$
(44
)
$
(921
)
$
(203
)
Less: Consolidated Interest Expense, Net
(45
)
(41
)
(31
)
(47
)
(46
)
(43
)
(47
)
(41
)
Plus: Consolidated Depreciation, Depletion & Amortization
217

215

235

218

221

211

233

217

Plus: Accretion Expense
12

13

11

15

13

16

16

17

Plus: Share-Based Compensation Expense (Benefit)
7

3

2

15

7

2

5

(10
)
Plus: Consolidated Provision for (Benefit from) Income Taxes
4

91

33

46

(52
)
69

(289
)
(133
)
Plus: Notable Items
128

13

176

(42
)
347

69

1,113

285

Consolidated Adjusted EBITDA
$
480

$
622

$
603

$
430

$
349

$
366

$
202

$
214


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.