Delaware | 001-32327 | 20-1026454 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3033 Campus Drive Suite E490 Plymouth, Minnesota | ||
55441 | ||
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
THE MOSAIC COMPANY | |||||||
Date: August 6, 2018 | By: | /s/ Mark J. Isaacson | |||||
Name: | Mark J. Isaacson | ||||||
Title: | Senior Vice President, General Counsel | ||||||
and Corporate Secretary |
The Mosaic Company 3033 Campus Drive, Suite E490 Plymouth, MN 55441 www.mosaicco.com |
FOR IMMEDIATE RELEASE | ||||
Media Ben Pratt The Mosaic Company 763-577-6102 benjamin.pratt@mosaicco.com | Investors Laura Gagnon The Mosaic Company 763-577-8213 investor@mosaicco.com |
• | Guiding to full-year adjusted EBITDA(1) in the range of $1.80 - $1.95 billion, up from the previously increased $1.70 - $1.90 billion range. |
• | Raising full-year adjusted EPS(1) guidance to $1.45 - $1.80, from $1.20 - $1.60, due to strong underlying business performance and lower expected full-year effective tax rate. |
• | Generated cash flow from operating activities of $807 million in the quarter, benefiting from strong business performance and prepayments from customers in Brazil. |
• | Delivered on Mosaic Fertilizantes synergy targets with $56 million in gross synergies realized year-to-date, or $34 million net of costs to achieve them. Run rate savings were well over $100 million as of June 30, 2018. |
• | Achieved record MicroEssentials® sales volumes in the second quarter. |
• | Paid down an additional $200 million of long-term debt subsequent to quarter end, reaching our full-year 2018 debt retirement target of $500 million. |
Phosphates Results* | 2Q 2018 | 1Q 2018 | 2Q 2017 |
Sales Volumes million tonnes | 2.3 | 1.9 | 2.6 |
Gross Margin (GAAP) per tonne | $67 | $49 | $29 |
Adjusted Gross Margin (non-GAAP) per tonne | $70 | $57 | $29 |
Potash Results | 2Q 2018 | 1Q 2018 | 2Q 2017 |
Sales Volumes million tonnes | 2.4 | 1.7 | 2.2 |
Gross Margin (GAAP) per tonne | $56 | $61 | $50 |
Adjusted Gross Margin (non-GAAP) per tonne | $58 | $64 | $50 |
Mosaic Fertilizantes Results* | 2Q 2018 | 1Q 2018 | 2Q 2017 |
Sales Volumes million tonnes | 1.8 | 1.6 | 1.3 |
Gross Margin (GAAP) per tonne | $29 | $37 | $19 |
Adjusted Gross Margin (non GAAP) per tonne | $29 | $37 | $19 |
$ in millions except per share | 2018 Guidance | Reported YTD 6/30/2018 |
Adjusted EBITDA(1) | $1,800 - $1,950 | $833 |
Adjusted earnings per share(1) | $1.45 - $1.80 | $0.60 |
Capital Expenditures | $900 - $1,100 | $424 |
In Millions* | Full-Year 2018 Assumptions | Reported YTD 6/30/2018 |
Potash tonnes sold** | 8.3 - 8.9 | 4.1 |
Phosphates tonnes sold | 8.3 - 8.9 | 4.2 |
Mosaic Fertilizantes tonnes sold | 8.7 - 9.5 | 3.4 |
SG&A Expenses | $325 - $350 | $173 |
Sales Volumes millions of tonnes* | Adjusted Gross Margin(1) | |
Potash | 2.2 - 2.5 | $55 - $65 per tonne |
Phosphates | 2.1 - 2.4 | $75 - $85 per tonne |
Mosaic Fertilizantes | 3.2 - 3.6 | $35 - $45 per tonne |
Corporate and Other | $0 - $15 million |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (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 | ) |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | 1 | $ | 0.03 | ||||||||
Unrealized gain on derivatives | Corporate and Other | Cost of goods sold | 3 | — | 0.01 | |||||||||||
Fees related to purchase of Vale Fertilizantes | Corporate and Other | Other operating 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 | ) |
The Mosaic Company | (unaudited) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net sales | $ | 2,205.0 | $ | 1,754.6 | $ | 4,138.7 | $ | 3,332.7 | ||||||||
Cost of goods sold | 1,910.4 | 1,562.3 | 3,602.0 | 3,010.8 | ||||||||||||
Gross margin | 294.6 | 192.3 | 536.7 | 321.9 | ||||||||||||
Selling, general and administrative expenses | 79.3 | 71.2 | 172.9 | 152.1 | ||||||||||||
Other operating expense | 19.0 | 26.5 | 86.8 | 45.1 | ||||||||||||
Operating earnings | 196.3 | 94.6 | 277.0 | 124.7 | ||||||||||||
Interest expense, net | (45.1 | ) | (36.4 | ) | (94.5 | ) | (62.2 | ) | ||||||||
Foreign currency transaction (loss) gain | (78.7 | ) | 9.1 | (110.9 | ) | 18.0 | ||||||||||
Other (expense) income | (2.4 | ) | 1.4 | (8.0 | ) | (3.1 | ) | |||||||||
Earnings from consolidated companies before income taxes | 70.1 | 68.7 | 63.6 | 77.4 | ||||||||||||
Provision for (benefits from) income taxes | 3.7 | (22.6 | ) | (46.2 | ) | (12.9 | ) | |||||||||
Earnings from consolidated companies | 66.4 | 91.3 | 109.8 | 90.3 | ||||||||||||
Equity in net earnings (loss) of nonconsolidated companies | 1.7 | 5.8 | (1.6 | ) | 5.7 | |||||||||||
Net earnings including noncontrolling interests | 68.1 | 97.1 | 108.2 | 96.0 | ||||||||||||
Less: Net income (loss) attributable to noncontrolling interests | 0.2 | (0.2 | ) | (2.0 | ) | (0.4 | ) | |||||||||
Net earnings attributable to Mosaic | $ | 67.9 | $ | 97.3 | $ | 110.2 | $ | 96.4 | ||||||||
Diluted net earnings per share attributable to Mosaic | $ | 0.18 | $ | 0.28 | $ | 0.29 | $ | 0.27 | ||||||||
Diluted weighted average number of shares outstanding | 387.2 | 352.0 | 385.5 | 351.8 |
The Mosaic Company | (unaudited) |
June 30, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,035.3 | $ | 2,153.5 | ||||
Receivables, net | 624.9 | 642.6 | ||||||
Inventories | 2,168.3 | 1,547.2 | ||||||
Other current assets | 341.9 | 273.2 | ||||||
Total current assets | 4,170.4 | 4,616.5 | ||||||
Property, plant and equipment, net | 11,559.6 | 9,711.7 | ||||||
Investments in nonconsolidated companies | 837.8 | 1,089.5 | ||||||
Goodwill | 1,738.0 | 1,693.6 | ||||||
Deferred income taxes | 515.7 | 254.6 | ||||||
Other assets | 1,576.5 | 1,267.5 | ||||||
Total assets | $ | 20,398.0 | $ | 18,633.4 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 20.2 | $ | 6.1 | ||||
Current maturities of long-term debt | 261.2 | 343.5 | ||||||
Structured accounts payable arrangements | 384.5 | 386.2 | ||||||
Accounts payable | 774.8 | 540.9 | ||||||
Accrued liabilities | 1,154.2 | 754.4 | ||||||
Total current liabilities | 2,594.9 | 2,031.1 | ||||||
Long-term debt, less current maturities | 4,736.5 | 4,878.1 | ||||||
Deferred income taxes | 1,163.6 | 1,117.3 | ||||||
Other noncurrent liabilities | 1,487.3 | 967.8 | ||||||
Equity: | ||||||||
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of June 30, 2018 and December 31, 2017 | — | — | ||||||
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 389,230,157 shares issued and 385,457,882 shares outstanding as of June 30, 2018, 388,998,498 shares issued and 351,049,649 shares outstanding as of December 31, 2017 | 3.8 | 3.5 | ||||||
Capital in excess of par value | 981.7 | 44.5 | ||||||
Retained earnings | 10,734.1 | 10,631.1 | ||||||
Accumulated other comprehensive loss | (1,523.2 | ) | (1,061.6 | ) | ||||
Total Mosaic stockholders' equity | 10,196.4 | 9,617.5 | ||||||
Noncontrolling interests | 219.3 | 21.6 | ||||||
Total equity | 10,415.7 | 9,639.1 | ||||||
Total liabilities and equity | $ | 20,398.0 | $ | 18,633.4 |
The Mosaic Company | (unaudited) |
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Cash Flows from Operating Activities: | ||||||||||||||||
Net cash provided by operating activities | $ | 807.0 | $ | 242.8 | $ | 736.0 | $ | 388.8 | ||||||||
Cash Flows from Investing Activities: | ||||||||||||||||
Capital expenditures | (201.1 | ) | (168.5 | ) | (424.4 | ) | (392.3 | ) | ||||||||
Purchases of available-for-sale securities - restricted | (71.9 | ) | (530.2 | ) | (257.6 | ) | (1,266.3 | ) | ||||||||
Proceeds from sale of available-for-sale securities - restricted | 65.4 | 521.8 | 249.4 | 1,256.1 | ||||||||||||
Investments in consolidated affiliate | (4.9 | ) | (13.9 | ) | (3.6 | ) | (38.9 | ) | ||||||||
Acquisition, net of cash acquired | 9.3 | — | (985.3 | ) | — | |||||||||||
Other | 6.5 | 13.8 | 4.4 | 18.8 | ||||||||||||
Net cash used in investing activities | (196.7 | ) | (177.0 | ) | (1,417.1 | ) | (422.6 | ) | ||||||||
Cash Flows from Financing Activities: | ||||||||||||||||
Payments of short-term debt | (88.9 | ) | (250.7 | ) | (88.9 | ) | (265.2 | ) | ||||||||
Proceeds from issuance of short-term debt | 41.9 | 200.4 | 107.2 | 343.4 | ||||||||||||
Payments of structured accounts payable arrangements | (202.5 | ) | (120.5 | ) | (438.2 | ) | (155.8 | ) | ||||||||
Proceeds from structured accounts payable arrangements | 157.2 | 140.1 | 331.0 | 247.4 | ||||||||||||
Payments of long-term debt | (107.0 | ) | (1.8 | ) | (313.9 | ) | (3.4 | ) | ||||||||
Proceeds from issuance of long-term debt | 39.2 | 0.2 | 39.2 | 1.5 | ||||||||||||
Cash dividends paid | (9.6 | ) | (52.7 | ) | (19.2 | ) | (149.1 | ) | ||||||||
Other | (0.2 | ) | (0.3 | ) | (0.4 | ) | (1.9 | ) | ||||||||
Net cash (used in) provided by financing activities | (169.9 | ) | (85.3 | ) | (383.2 | ) | 16.9 | |||||||||
Effect of exchange rate changes on cash | (65.0 | ) | 1.5 | (51.6 | ) | 4.5 | ||||||||||
Net change in cash, cash equivalents and restricted cash | 375.4 | (18.0 | ) | (1,115.9 | ) | (12.4 | ) | |||||||||
Cash, cash equivalents and restricted cash - beginning of period | 703.1 | 717.0 | 2,194.4 | 711.4 | ||||||||||||
Cash, cash equivalents and restricted cash - end of period | $ | 1,078.5 | $ | 699.0 | $ | 1,078.5 | $ | 699.0 |
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cash flows: | ||||||||||
Cash and cash equivalents | $ | 1,035.3 | $ | 660.6 | ||||||
Restricted cash in other current assets | 8.5 | 7.2 | ||||||||
Restricted cash in other assets | 34.7 | 31.2 | ||||||||
Total cash, cash equivalents and restricted cash shown in the unaudited statement of cash flows | $ | 1,078.5 | $ | 699.0 | ||||||
Three months ended June 30, | Six months ended June 30, | |||||||||||||||
2018 | 2017 | 2018 | 2017 | |||||||||||||
Net earnings attributable to Mosaic | $ | 67.9 | $ | 97.3 | $ | 110.2 | $ | 96.4 | ||||||||
Basic weighted average number of shares outstanding | 385.4 | 351.0 | 384.0 | 350.8 | ||||||||||||
Dilutive impact of share-based awards | 1.8 | 1.0 | 1.5 | 1.0 | ||||||||||||
Diluted weighted average number of shares outstanding | 387.2 | 352.0 | 385.5 | 351.8 | ||||||||||||
Basic net earnings per share attributable to Mosaic | $ | 0.18 | $ | 0.28 | $ | 0.29 | $ | 0.27 | ||||||||
Diluted net earnings per share attributable to Mosaic | $ | 0.18 | $ | 0.28 | $ | 0.29 | $ | 0.27 |
Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | 0.11 | $ | 0.03 | $ | — | $ | 0.28 | $ | 0.65 | $ | (1.23 | ) | $ | 0.11 | $ | 0.18 | |||||||
Notable items impact on earnings per share(a) | (0.30 | ) | (0.23 | ) | (0.04 | ) | (0.01 | ) | 0.22 | (1.57 | ) | (0.09 | ) | (0.22 | ) | |||||||||
Adjusted diluted net earnings per share(a) | $ | 0.41 | $ | 0.26 | $ | 0.04 | $ | 0.29 | $ | 0.43 | $ | 0.34 | $ | 0.20 | $ | 0.40 | ||||||||
Diluted weighted average # of shares outstanding | 351.5 | 351.6 | 350.5 | 352.0 | 352.2 | 351.0 | 384.1 | 387.2 | ||||||||||||||||
Total Net Sales | $ | 1,952 | $ | 1,862 | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | ||||||||
Cost of goods sold | 1,739 | 1,656 | 1,449 | 1,562 | 1,744 | 1,812 | 1,691 | 1,910 | ||||||||||||||||
Gross Margin | $ | 213 | $ | 206 | $ | 130 | $ | 192 | $ | 241 | $ | 280 | $ | 243 | $ | 295 | ||||||||
SG&A | 67 | 75 | 81 | 71 | 66 | 83 | 94 | 79 | ||||||||||||||||
Other operating expense | 76 | 57 | 19 | 27 | (39 | ) | 70 | 68 | 20 | |||||||||||||||
Operating earnings | $ | 70 | $ | 74 | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | ||||||||
Interest expense, net | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | ||||||||
Consolidated foreign currency gain/(loss) | (33 | ) | (30 | ) | 9 | 9 | 59 | (27 | ) | (32 | ) | (79 | ) | |||||||||||
Earnings from consolidated companies before income taxes | 12 | 12 | 9 | 69 | 237 | 59 | (7 | ) | 70 | |||||||||||||||
(Benefit from) provision for income taxes | (30 | ) | (5 | ) | 10 | (23 | ) | 18 | 490 | (50 | ) | 4 | ||||||||||||
Earnings from consolidated companies | $ | 42 | $ | 17 | $ | (1 | ) | $ | 91 | $ | 220 | $ | (431 | ) | $ | 43 | $ | 66 | ||||||
Equity in net earnings (loss) of nonconsolidated companies | (2 | ) | (3 | ) | — | 6 | 10 | 1 | (3 | ) | 2 | |||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | 2 | 3 | — | — | 2 | 1 | (2 | ) | — | |||||||||||||||
Net earnings attributable to Mosaic | $ | 39 | $ | 12 | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | ||||||
After tax Notable items included in earnings | $ | (105 | ) | $ | (80 | ) | $ | (11 | ) | $ | (5 | ) | $ | 79 | $ | (550 | ) | $ | (35 | ) | $ | (86 | ) | |
Gross Margin Rate | 11 | % | 11 | % | 8 | % | 11 | % | 12 | % | 13 | % | 13 | % | 13 | % | ||||||||
Effective Tax Rate (including discrete tax) | (245 | )% | (47 | )% | 112 | % | (33 | )% | 7 | % | 828 | % | 714 | % | 5 | % | ||||||||
Discrete Tax benefit (expense) | $ | 2 | $ | (7 | ) | $ | (9 | ) | $ | 16 | $ | 5 | $ | (463 | ) | $ | 48 | $ | 13 | |||||
Consolidated Depreciation, Depletion and Amortization | $ | 173 | $ | 165 | $ | 159 | $ | 166 | $ | 169 | $ | 172 | $ | 217 | $ | 217 | ||||||||
Consolidated EBITDA(b) | $ | 208 | $ | 199 | $ | 193 | $ | 277 | $ | 451 | $ | 271 | $ | 257 | $ | 333 | ||||||||
Notable items included in Consolidated EBITDA | $ | (104 | ) | $ | (78 | ) | $ | (1 | ) | $ | (12 | ) | $ | 93 | $ | (95 | ) | $ | (115 | ) | $ | (128 | ) | |
Adjusted EBITDA | $ | 312 | $ | 277 | $ | 194 | $ | 289 | $ | 358 | $ | 366 | $ | 372 | $ | 461 | ||||||||
Net cash provided by operating activities | $ | 90 | $ | 323 | $ | 146 | $ | 243 | $ | 136 | $ | 411 | $ | (71 | ) | $ | 807 | |||||||
Cash paid for interest (net of amount capitalized) | 3 | 58 | 8 | 67 | 24 | 57 | 11 | 78 | ||||||||||||||||
Cash paid for income taxes (net of refunds) | (50 | ) | (41 | ) | — | (9 | ) | (8 | ) | (53 | ) | 13 | 14 | |||||||||||
Net cash used in investing activities | $ | (978 | ) | $ | (264 | ) | $ | (245 | ) | $ | (177 | ) | $ | (221 | ) | $ | (25 | ) | $ | (1,220 | ) | $ | (197 | ) |
Capital expenditures | (196 | ) | (209 | ) | (224 | ) | (169 | ) | (198 | ) | (230 | ) | (223 | ) | (201 | ) | ||||||||
Net cash (used in) provided by financing activities | $ | (112 | ) | $ | (255 | ) | $ | 102 | $ | (85 | ) | $ | 94 | $ | 1,090 | $ | (213 | ) | $ | (170 | ) | |||
Cash dividends paid | (96 | ) | (96 | ) | (96 | ) | (53 | ) | (53 | ) | (9 | ) | (10 | ) | (10 | ) | ||||||||
Effect of exchange rate changes on cash | $ | (8 | ) | $ | (12 | ) | $ | 3 | $ | 2 | $ | 18 | $ | (8 | ) | $ | 13 | $ | (65 | ) | ||||
Net change in cash and cash equivalents | $ | (1,007 | ) | $ | (208 | ) | $ | 6 | $ | (18 | ) | $ | 27 | $ | 1,468 | $ | (1,491 | ) | $ | 375 | ||||
Short-term debt | $ | 54 | $ | — | $ | 124 | $ | 65 | $ | 59 | $ | 6 | $ | 72 | $ | 20 | ||||||||
Long-term debt (including current portion) | 3,823 | 3,818 | 3,828 | 3,843 | 3,856 | 5,222 | 5,074 | 4,998 | ||||||||||||||||
Cash & cash equivalents | 654 | 673 | 675 | 661 | 686 | 2,154 | 659 | 1,035 | ||||||||||||||||
Net debt | $ | 3,223 | $ | 3,145 | $ | 3,276 | $ | 3,247 | $ | 3,229 | $ | 3,074 | $ | 4,487 | $ | 3,983 | ||||||||
Segment Contributions (in millions) | ||||||||||||||||||||||||
Potash | $ | 428 | $ | 407 | $ | 414 | $ | 468 | $ | 474 | $ | 496 | $ | 404 | $ | 569 | ||||||||
Phosphates | 930 | 896 | 839 | 975 | 779 | 997 | 866 | 1,053 | ||||||||||||||||
Mosaic Fertilizantes | 740 | 521 | 427 | 467 | 806 | 520 | 665 | 713 | ||||||||||||||||
Corporate and Other(c) | (146 | ) | 38 | (102 | ) | (155 | ) | (74 | ) | 79 | (1 | ) | (130 | ) | ||||||||||
Total net sales | $ | 1,952 | $ | 1,862 | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | ||||||||
Potash | $ | 7 | $ | 28 | $ | 36 | $ | 85 | $ | 77 | $ | 83 | $ | 74 | $ | 108 | ||||||||
Phosphates | 6 | 12 | 17 | 30 | 88 | 57 | 60 | 129 | ||||||||||||||||
Mosaic Fertilizantes | 50 | 39 | 11 | 21 | 46 | 10 | 9 | 14 | ||||||||||||||||
Corporate and Other(c) | 7 | (5 | ) | (34 | ) | (42 | ) | 3 | (23 | ) | (62 | ) | (55 | ) | ||||||||||
Consolidated operating earnings | $ | 70 | $ | 74 | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | ||||||||
Potash(d) | 2,208 | 1,984 | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | ||||||||||||||||
Phosphates(d) | 2,521 | 2,504 | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | ||||||||||||||||
Mosaic Fertilizantes | 1,922 | 1,446 | 646 | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | ||||||||||||||||
Corporate and Other | 290 | 463 | 689 | 319 | 333 | 497 | 266 | 348 | ||||||||||||||||
Total finished product tonnes sold ('000 tonnes) | 6,941 | 6,397 | 5,580 | 6,392 | 6,840 | 6,609 | 5,485 | 6,860 | ||||||||||||||||
Percent specialty(p) | 18 | % | 19 | % | 19 | % | 22 | % | 21 | % | 18 | % | 22 | % | 25 | % |
Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 930 | $ | 896 | $ | 839 | $ | 975 | $ | 779 | $ | 997 | $ | 866 | $ | 1,053 | ||||||||
Cost of Goods Sold | 829 | 812 | 783 | 898 | 712 | 864 | 769 | 899 | ||||||||||||||||
Gross Margin | $ | 101 | $ | 84 | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 97 | $ | 154 | ||||||||
Notable Items Included in Gross Margin | — | 9 | — | — | — | — | (15 | ) | (6 | ) | ||||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 101 | $ | 75 | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 112 | $ | 160 | ||||||||
SG&A | 30 | 30 | 30 | 29 | 25 | 29 | 31 | 24 | ||||||||||||||||
Other operating (income) expense | 65 | 42 | 9 | 18 | (47 | ) | 47 | 6 | 1 | |||||||||||||||
Operating Earnings | $ | 6 | $ | 12 | $ | 17 | $ | 30 | $ | 88 | $ | 57 | $ | 60 | $ | 129 | ||||||||
Plus: Depreciation, Depletion and Amortization | 84 | 78 | 80 | 83 | 86 | 89 | 99 | 102 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 2 | 4 | (2 | ) | (4 | ) | (6 | ) | 1 | 4 | 1 | |||||||||||||
Plus: Other Income (Expense) | — | (10 | ) | (2 | ) | 2 | 1 | (1 | ) | (5 | ) | (3 | ) | |||||||||||
Plus: Equity in net earnings (loss) of nonconsolidated companies | (2 | ) | (3 | ) | — | 5 | 10 | 1 | (4 | ) | 1 | |||||||||||||
Less: Earnings (loss) from Consolidated Noncontrolling Interests | 2 | 4 | 2 | (2 | ) | — | 2 | (1 | ) | 1 | ||||||||||||||
EBITDA(g) | $ | 88 | $ | 77 | $ | 91 | $ | 118 | $ | 179 | $ | 144 | $ | 155 | $ | 229 | ||||||||
Notable Items Included in EBITDA | $ | (60 | ) | $ | (33 | ) | $ | (5 | ) | $ | (23 | ) | $ | 43 | $ | (38 | ) | $ | (16 | ) | $ | 1 | ||
Adjusted EBITDA (excluding notables) | $ | 148 | $ | 110 | $ | 96 | $ | 141 | $ | 136 | $ | 182 | $ | 171 | $ | 228 | ||||||||
Capital expenditures | $ | 89 | $ | 89 | $ | 103 | $ | 101 | $ | 87 | $ | 110 | $ | 100 | $ | 92 | ||||||||
Gross Margin $ / tonne of finished product | $ | 40 | $ | 34 | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 49 | $ | 67 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 40 | $ | 30 | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 57 | $ | 70 | ||||||||
Gross margin as a percent of sales | 11 | % | 9 | % | 7 | % | 8 | % | 9 | % | 13 | % | 11 | % | 15 | % | ||||||||
Freight included in finished goods (in millions) | $ | 86 | $ | 91 | $ | 79 | $ | 103 | $ | 78 | $ | 107 | $ | 77 | $ | 100 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
DAP/MAP | 1,715 | 1,763 | 1,486 | 1,706 | 1,483 | 1,663 | 1,295 | 1,332 | ||||||||||||||||
Specialty(k) | 806 | 741 | 786 | 876 | 627 | 833 | 650 | 970 | ||||||||||||||||
Total Finished Product(d) | 2,521 | 2,504 | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 369 | $ | 358 | $ | 369 | $ | 377 | $ | 369 | $ | 399 | $ | 431 | $ | 451 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(h) | 2,461 | 2,463 | 2,303 | 2,461 | 2,339 | 2,322 | 2,045 | 2,081 | ||||||||||||||||
Operating Rate(n) | 84 | % | 84 | % | 79 | % | 84 | % | 80 | % | 79 | % | 84 | % | 86 | % | ||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||
Ammonia (tonne)(i) | $ | 287 | $ | 259 | $ | 285 | $ | 373 | $ | 283 | $ | 298 | $ | 344 | $ | 325 | ||||||||
Sulfur (long ton)(j) | $ | 93 | $ | 87 | $ | 87 | $ | 90 | $ | 88 | $ | 97 | $ | 128 | $ | 139 | ||||||||
Blended rock | $ | 60 | $ | 58 | $ | 59 | $ | 58 | $ | 63 | $ | 55 | $ | 55 | $ | 59 | ||||||||
Cash conversion costs / finished product tonne | $ | 62 | $ | 65 | $ | 79 | $ | 67 | $ | 68 | $ | 70 | $ | 68 | $ | 64 | ||||||||
Cash rock costs consumed / tonne | $ | 42 | $ | 40 | $ | 40 | $ | 40 | $ | 40 | $ | 35 | $ | 35 | $ | 36 | ||||||||
Phosphate Rock | ||||||||||||||||||||||||
Sales Volumes ('000 tonnes)(m) | 360 | 209 | ||||||||||||||||||||||
Average rock selling price (destination)(o) | $ | 79 | $ | 72 | ||||||||||||||||||||
Gross margin $ / rock tonne | $ | 4 | $ | (3 | ) | |||||||||||||||||||
Freight included in rock (in millions) | $ | 8 | $ | 4 |
Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 428 | $ | 407 | $ | 414 | $ | 468 | $ | 474 | $ | 496 | $ | 404 | $ | 569 | ||||||||
Cost of Goods Sold | 388 | 341 | 345 | 358 | 376 | 383 | 301 | 437 | ||||||||||||||||
Gross Margin | $ | 40 | $ | 66 | $ | 69 | $ | 110 | $ | 99 | $ | 114 | $ | 103 | $ | 132 | ||||||||
Notable Items Included in Gross Margin | — | — | (3 | ) | — | (10 | ) | — | (5 | ) | (4 | ) | ||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 40 | $ | 66 | $ | 72 | $ | 110 | $ | 109 | $ | 114 | $ | 108 | $ | 136 | ||||||||
SG&A | 27 | 30 | 28 | 23 | 21 | 24 | 26 | 22 | ||||||||||||||||
Other operating (income) expense | 6 | 8 | 6 | 2 | 1 | 7 | 3 | 2 | ||||||||||||||||
Operating Earnings | $ | 7 | $ | 28 | $ | 36 | $ | 85 | $ | 77 | $ | 83 | $ | 74 | $ | 108 | ||||||||
Plus: Depreciation, Depletion and Amortization | 77 | 77 | 70 | 73 | 73 | 72 | 76 | 73 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (24 | ) | (27 | ) | 8 | 30 | 55 | (13 | ) | (30 | ) | (23 | ) | |||||||||||
Plus: Other Income (Expense) | 78 | — | — | — | — | — | — | — | ||||||||||||||||
EBITDA(g) | $ | 138 | $ | 78 | $ | 114 | $ | 188 | $ | 205 | $ | 142 | $ | 120 | $ | 158 | ||||||||
Notable Items Included in EBITDA | $ | (26 | ) | $ | (27 | ) | $ | 5 | $ | 30 | $ | 45 | $ | (13 | ) | $ | (35 | ) | $ | (27 | ) | |||
Adjusted EBITDA (excluding notables) | $ | 164 | $ | 105 | $ | 109 | $ | 158 | $ | 160 | $ | 155 | $ | 155 | $ | 185 | ||||||||
Capital expenditures | $ | 99 | $ | 107 | $ | 106 | $ | 61 | $ | 102 | $ | 103 | $ | 104 | $ | 80 | ||||||||
Gross Margin $ / tonne of finished product | $ | 18 | $ | 33 | $ | 35 | $ | 50 | $ | 44 | $ | 51 | $ | 61 | $ | 56 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 18 | $ | 33 | $ | 37 | $ | 50 | $ | 49 | $ | 51 | $ | 64 | $ | 58 | ||||||||
Gross margin as a percent of sales | 9 | % | 16 | % | 17 | % | 23 | % | 21 | % | 23 | % | 25 | % | 23 | % | ||||||||
Supplemental Cost Information | ||||||||||||||||||||||||
Canadian resource taxes | $ | 14 | $ | 31 | $ | 23 | $ | 33 | $ | (5 | ) | $ | 19 | $ | 26 | $ | 34 | |||||||
Royalties | $ | 4 | $ | 5 | $ | 5 | $ | 6 | $ | 52 | $ | 9 | $ | 8 | $ | 9 | ||||||||
Brine inflow expenses | $ | 38 | $ | 36 | $ | 39 | $ | 38 | $ | 37 | $ | 36 | $ | 39 | $ | 39 | ||||||||
Freight (f) | $ | 66 | $ | 63 | $ | 69 | $ | 70 | $ | 69 | $ | 80 | $ | 71 | $ | 70 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
MOP | 2,086 | 1,862 | 1,832 | 2,038 | 2,071 | 2,044 | 1,551 | 2,169 | ||||||||||||||||
Specialty(l) | 122 | 122 | 141 | 153 | 148 | 173 | 139 | 195 | ||||||||||||||||
Total Finished Product(d) | 2,208 | 1,984 | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 194 | $ | 205 | $ | 210 | $ | 214 | $ | 214 | $ | 224 | $ | 239 | $ | 241 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Production Volume | 1,662 | 2,147 | 2,048 | 2,302 | 2,151 | 2,149 | 2,275 | 2,151 | ||||||||||||||||
Operating Rate | 63 | % | 82 | % | 83 | % | 93 | % | 87 | % | 87 | % | 87 | % | 82 | % | ||||||||
MOP cash costs of production including brine / production tonne(q) | $ | 94 | $ | 74 | $ | 86 | $ | 77 | $ | 101 | $ | 87 | $ | 86 | $ | 85 | ||||||||
MOP cash costs of brine management / production tonne | $ | 23 | $ | 17 | $ | 19 | $ | 17 | $ | 17 | $ | 17 | $ | 17 | $ | 18 | ||||||||
Average CAD / USD | $ | 1.304 | $ | 1.335 | $ | 1.323 | $ | 1.345 | $ | 1.253 | $ | 1.270 | $ | 1.264 | $ | 1.291 |
Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 740 | $ | 521 | $ | 427 | $ | 467 | $ | 806 | $ | 520 | $ | 665 | $ | 713 | ||||||||
Cost of Goods Sold | 676 | 475 | 409 | 442 | 754 | 487 | 606 | 660 | ||||||||||||||||
Gross Margin | $ | 65 | $ | 46 | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | ||||||||
Notable Items Included in Gross Margin | — | — | — | — | — | — | — | — | ||||||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 65 | $ | 46 | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | ||||||||
SG&A | 17 | 16 | 15 | 17 | 18 | 22 | 25 | 29 | ||||||||||||||||
Other operating (income) expense | 1 | — | (1 | ) | (2 | ) | (3 | ) | 1 | 25 | 10 | |||||||||||||
Operating Earnings | $ | 47 | $ | 30 | $ | 5 | $ | 11 | $ | 38 | $ | 10 | $ | 9 | $ | 14 | ||||||||
Plus: Depreciation, Depletion and Amortization | 4 | 4 | 4 | 4 | 4 | 4 | 37 | 37 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (10 | ) | (5 | ) | (1 | ) | (18 | ) | 14 | (19 | ) | (5 | ) | (57 | ) | |||||||||
Plus: Other Income (Expense) | — | (2 | ) | (3 | ) | (1 | ) | 1 | (1 | ) | — | (1 | ) | |||||||||||
Less: Earnings from Consolidated Noncontrolling Interests | 2 | 1 | 1 | — | 2 | 1 | — | — | ||||||||||||||||
EBITDA(g) | $ | 40 | $ | 26 | $ | 5 | $ | (4 | ) | $ | 55 | $ | (6 | ) | $ | 41 | $ | (7 | ) | |||||
Notable Items Included in EBITDA | $ | (10 | ) | $ | (5 | ) | $ | (1 | ) | $ | (18 | ) | $ | 14 | $ | (19 | ) | $ | (21 | ) | $ | (63 | ) | |
Adjusted EBITDA (excluding notables) | $ | 50 | $ | 31 | $ | 5 | $ | 14 | $ | 40 | $ | 13 | $ | 62 | $ | 56 | ||||||||
Capital expenditures | $ | 5 | $ | 7 | $ | 8 | $ | 5 | $ | 4 | $ | 16 | $ | 18 | $ | 29 | ||||||||
Gross Margin $ / tonne of finished product | $ | 34 | $ | 32 | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 34 | $ | 32 | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | ||||||||
Gross margin as a percent of sales | 9 | % | 9 | % | 4 | % | 5 | % | 6 | % | 6 | % | 9 | % | 7 | % | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||
Phosphate produced in Brazil | 81 | 79 | 50 | 82 | 85 | 85 | 427 | 636 | ||||||||||||||||
Potash produced in Brazil | — | — | — | — | — | — | 99 | 66 | ||||||||||||||||
Purchased nutrients | 1,841 | 1,367 | 1,089 | 1,218 | 2,093 | 1,314 | 1,058 | 1,144 | ||||||||||||||||
Total Finished Product | 1,922 | 1,446 | 1,139 | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 385 | $ | 360 | $ | 375 | $ | 359 | $ | 370 | $ | 372 | $ | 420 | $ | 386 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(r) | — | — | — | — | — | — | 987 | 822 | ||||||||||||||||
Operating Rate | — | % | — | % | — | % | — | % | — | % | — | % | 81 | % | 67 | % | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 195 | 175 | 169 | 176 | 164 | 150 | 70 | 216 | ||||||||||||||||
MicroEssentials® from Mosaic | 293 | 120 | 314 | 365 | 178 | 55 | 182 | 392 | ||||||||||||||||
Potash from Mosaic/Canpotex | 435 | 284 | 408 | 868 | 451 | 346 | 389 | 770 | ||||||||||||||||
Average BRL / USD | $ | 3.244 | $ | 3.298 | $ | 3.144 | $ | 3.215 | $ | 3.168 | $ | 3.308 | $ | 3.246 | $ | 3.604 |
Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | (146 | ) | $ | 39 | $ | (102 | ) | $ | (155 | ) | $ | (74 | ) | $ | 79 | $ | (1 | ) | $ | (130 | ) | ||
Cost of Goods Sold | (154 | ) | 28 | (88 | ) | (136 | ) | (98 | ) | 78 | 15 | (86 | ) | |||||||||||
Gross Margin (Loss) | $ | 8 | $ | 11 | $ | (15 | ) | $ | (19 | ) | $ | 23 | $ | 1 | $ | (16 | ) | $ | (44 | ) | ||||
Notable items Included in Gross Margin | (8 | ) | (4 | ) | (1 | ) | 3 | 2 | (17 | ) | (12 | ) | (34 | ) | ||||||||||
Adjusted Gross Margin (Loss) (excluding notables) | $ | 16 | $ | 15 | $ | (14 | ) | $ | (22 | ) | $ | 21 | $ | 18 | $ | (4 | ) | $ | (10 | ) | ||||
SG&A | (8 | ) | (1 | ) | 8 | 3 | 3 | 9 | 12 | 4 | ||||||||||||||
Other operating (income) expense | 6 | 9 | 4 | 9 | 9 | 15 | 34 | 7 | ||||||||||||||||
Operating Earnings (Loss) | $ | 9 | $ | 3 | $ | (27 | ) | $ | (31 | ) | $ | 11 | $ | (23 | ) | $ | (62 | ) | $ | (55 | ) | |||
Plus: Depreciation, Depletion and Amortization | 8 | 6 | 5 | 6 | 5 | 7 | 5 | 5 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (1 | ) | (2 | ) | 3 | 1 | (5 | ) | 5 | (1 | ) | — | ||||||||||||
Plus: Other Income (Expense) | (78 | ) | 7 | — | — | — | — | (2 | ) | 2 | ||||||||||||||
Less: Earnings (Loss) from Consolidated Noncontrolling Interests | (3 | ) | (3 | ) | (3 | ) | 2 | — | (2 | ) | (1 | ) | (1 | ) | ||||||||||
EBITDA(g) | $ | (59 | ) | $ | 17 | $ | (16 | ) | $ | (26 | ) | $ | 11 | $ | (9 | ) | $ | (59 | ) | $ | (47 | ) | ||
Notable Items Included in EBITDA | $ | (9 | ) | $ | (6 | ) | $ | 2 | $ | 4 | $ | (7 | ) | $ | (25 | ) | $ | (43 | ) | $ | (39 | ) | ||
Adjusted EBITDA (excluding notables) | $ | (50 | ) | $ | 23 | $ | (18 | ) | $ | (30 | ) | $ | 18 | $ | 16 | $ | (16 | ) | $ | (8 | ) | |||
Elimination of profit in inventory income (loss) included in COGS | $ | 20 | $ | 12 | $ | (19 | ) | $ | (28 | ) | $ | 20 | $ | (18 | ) | $ | (8 | ) | $ | (21 | ) | |||
Unrealized gain (loss) on derivatives included in COGS | $ | (8 | ) | $ | (4 | ) | $ | (1 | ) | $ | 3 | $ | 2 | $ | (17 | ) | $ | (12 | ) | $ | (34 | ) | ||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 290 | 463 | 196 | 319 | 333 | 497 | 266 | 348 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 372 | $ | 354 | $ | 305 | $ | 323 | $ | 373 | $ | 387 | $ | 333 | $ | 396 | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 201 | 44 | — | 232 | 222 | 50 | — | 22 | ||||||||||||||||
MicroEssentials® from Mosaic | 10 | 53 | — | — | — | 68 | — | 8 | ||||||||||||||||
Potash from Mosaic/Canpotex | 38 | 81 | 242 | 86 | 147 | 198 | 240 | 108 |
Q2 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (79 | ) | $ | 18 | $ | (0.16 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (34 | ) | 8 | (0.07 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (6 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (4 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (6 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 13 | 0.04 | |||||||||
Sales tax refund | Phosphates | Other operating income (expense) | 6 | (1 | ) | 0.01 | ||||||||
Total Notable Items | $ | (128 | ) | $ | 42 | $ | (0.22 | ) |
Q1 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | 9 | $ | (0.06 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (12 | ) | 3 | (0.02 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (18 | ) | 5 | (0.03 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (8 | ) | 2 | (0.02 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (16 | ) | 5 | (0.03 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (5 | ) | 2 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (15 | ) | 4 | (0.03 | ) | |||||||
Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Severance | Corporate and Other | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 48 | 0.13 | |||||||||
Total Notable Items | $ | (115 | ) | $ | 80 | $ | (0.09 | ) |
Q4 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (27 | ) | $ | 2 | $ | (0.07 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (17 | ) | 1 | (0.05 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (12 | ) | — | (0.04 | ) | |||||||
Discrete tax items relating to changes in US tax laws | Consolidated | (Provision for) benefit from income taxes | — | (456 | ) | (1.30 | ) | |||||||
Other discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | — | ||||||||
Restructuring | Phosphates | Other operating income (expense) | (20 | ) | 2 | (0.05 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (11 | ) | 1 | (0.03 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (8 | ) | 1 | (0.02 | ) | |||||||
Resolution of royalty matter | Potash | Cost of goods sold | — | 2 | 0.01 | |||||||||
Total Notable Items | $ | (97 | ) | $ | (454 | ) | $ | (1.57 | ) |
Q3 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 58 | $ | — | $ | 0.17 | ||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (6 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 5 | 0.01 | |||||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | (0.01 | ) | |||||||
Gain on sale of land | Phosphates | Other operating income (expense) | 52 | — | 0.15 | |||||||||
Resolution of royalties with Saskatchewan government | Potash | Cost of goods sold | (10 | ) | (17 | ) | (0.08 | ) | ||||||
Asset write-off | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | 91 | $ | (12 | ) | $ | 0.22 |
Q2 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | 1 | $ | 0.03 | ||||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 3 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate & Other | Other operating income (expense) | (5 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 16 | 0.04 | |||||||||
Pre-issuance hedging loss | Consolidated | Interest Expense | (8 | ) | (1 | ) | (0.02 | ) | ||||||
Water loss expense | Phosphates | Other operating income (expense) | (14 | ) | (1 | ) | (0.04 | ) | ||||||
Miski Mayo | Phosphates | Equity in net earnings (loss) of nonconsolidated companies | (5 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (20 | ) | $ | 15 | $ | (0.01 | ) |
Q1 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | (1 | ) | $ | 0.02 | |||||
Unrealized loss on derivatives | Corporate & Other | Cost of goods sold | (1 | ) | — | — | ||||||||
Fees related to purchase of Vale assets | Corporate & Other | Other operating expense | (3 | ) | — | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (9 | ) | (0.03 | ) | |||||||
Liquidated damages for CF ammonia agreement | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Resolution of Canadian tax audit | Potash | Cost of goods sold | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (1 | ) | $ | (10 | ) | $ | (0.04 | ) |
Q4 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction (loss) gain | Consolidated | Foreign currency transaction (loss) gain | $ | (30 | ) | $ | (2 | ) | $ | (0.09 | ) | |||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | (4 | ) | — | (0.01 | ) | |||||||
Water loss expense | Phosphates | Other operating expenses | (10 | ) | (1 | ) | (0.03 | ) | ||||||
ARO adjustment | Phosphates | Other operating expenses | (21 | ) | (2 | ) | (0.07 | ) | ||||||
Depletion adjustment | Phosphates | Cost of goods sold | 9 | 1 | 0.03 | |||||||||
Pension de-risking | Consolidated | Other operating expenses | (6 | ) | — | (0.02 | ) | |||||||
Costs related to purchase of Vale Fertilizantes Business | Corporate & Other | Other operating expenses | (4 | ) | — | (0.01 | ) | |||||||
Gain on sale of equity investment | Phosphates | Other expense | 7 | 1 | 0.02 | |||||||||
Realized loss on RCRA Trust securities | Phosphates | Other expense | (10 | ) | (1 | ) | (0.03 | ) | ||||||
Discrete tax items | Consolidated | Benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Total Notable Items | $ | (69 | ) | $ | (11 | ) | $ | (0.23 | ) |
Q3 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(s) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | (1 | ) | $ | (0.10 | ) | |||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | (8 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | — | 2 | 0.01 | |||||||||
Asset reserve adjustment | Phosphates | Other operating income (expense) | 4 | — | 0.01 | |||||||||
New Wales water loss incident | Phosphates | Other operating income (expense) | (60 | ) | (2 | ) | (0.18 | ) | ||||||
Restructuring | Consolidated | Other operating income (expense) | (8 | ) | — | (0.02 | ) | |||||||
Total Notable Items | $ | (104 | ) | $ | (1 | ) | $ | (0.30 | ) |
(a) | Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See "Non-GAAP Reconciliations". |
(b) | The Company defines Consolidated EBITDA, a Non-GAAP measure, as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes, as further described in "Non-GAAP Reconciliations". |
(c) | Includes elimination of intersegment sales. |
(d) | Finished product sales volumes include intersegment sales. |
(e) | Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China. |
(f) | Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales. |
(g) | The Company defines segment EBITDA as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. EBITDA presented on a segment basis is a Non-GAAP financial measure. See "Non-GAAP Reconciliations." |
(h) | Includes crop nutrient dry concentrates and animal feed ingredients. |
(i) | Amounts are representative of our average ammonia costs in cost of goods sold. |
(j) | Amounts are representative of our average sulfur costs in cost of goods sold. |
(k) | Includes MicroEssentials and animal feed finished specialty products. |
(l) | Includes K-Mag and animal feed finished specialty products. |
(m) | Rock sales volumes include intersegment sales. |
(n) | Starting in Q1 2018, Plant City was excluded from operational capacity. |
(o) | Average selling price of all rock sold. |
(p) | Includes MicroEssentials, K-Mag and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes. |
(q) | MOP production cash costs including brine are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. |
(r) | Includes Phosphate and Potash crop nutrients and animal feed ingredients. |
(s) | Tax impact is based on our expected annual effective tax rate. |
(in millions) | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | ||||||||||||||||
Consolidated Net Income (Loss) | $ | 39 | $ | 12 | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | ||||||
Less: Consolidated Interest Expense, Net | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | ||||||||
Plus: Consolidated Depreciation, Depletion & Amortization | 173 | 165 | 159 | 166 | 169 | 172 | 217 | 217 | ||||||||||||||||
Plus: Consolidated Provision for (Benefit from) Income Taxes | (30 | ) | (5 | ) | 10 | (23 | ) | 18 | 490 | (50 | ) | 4 | ||||||||||||
Consolidated EBITDA(b) | $ | 208 | $ | 199 | $ | 194 | $ | 276 | $ | 451 | $ | 271 | $ | 257 | $ | 333 |
(in millions, except sales tonnes) | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | ||||||||||||||||
Potash Cost of Goods Sold | $ | 388 | $ | 341 | $ | 345 | $ | 358 | $ | 376 | $ | 383 | $ | 301 | $ | 437 | ||||||||
Less: | ||||||||||||||||||||||||
Freight included in revenue & cost of goods sold(f) | 66 | 63 | 69 | 70 | 69 | 80 | 71 | 70 | ||||||||||||||||
Canadian resource taxes | 14 | 31 | 23 | 33 | (5 | ) | 19 | 26 | 34 | |||||||||||||||
Royalties | 4 | 5 | 5 | 6 | 52 | 9 | 8 | 9 | ||||||||||||||||
Potash Depreciation, Depletion & Amortization | 77 | 77 | 70 | 73 | 73 | 72 | 76 | 73 | ||||||||||||||||
Cash Cost of Goods Sold | $ | 227 | $ | 165 | $ | 177 | $ | 176 | $ | 187 | $ | 203 | $ | 120 | $ | 251 | ||||||||
Sales tonnes (in thousands of mt) | 1,662 | 2,147 | 2,048 | 2,302 | 2,151 | 2,149 | 2,275 | 2,151 | ||||||||||||||||
Cash COGS/production tonne | $ | 94 | $ | 74 | $ | 86 | $ | 77 | $ | 101 | $ | 87 | $ | 86 | $ | 85 |
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