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) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit No. | Description | |
99.1 |
THE MOSAIC COMPANY | ||||||
Date: April 26, 2019 | By: | /s/ Mark J. Isaacson | ||||
Name: | Mark J. Isaacson | |||||
Title: | Senior Vice President, General Counsel | |||||
and Corporate Secretary |
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | — | $ | 0.28 | $ | 0.65 | $ | (1.23 | ) | $ | 0.11 | $ | 0.18 | $ | 0.64 | $ | 0.29 | |||||||
Notable items impact on earnings per share(a) | (0.04 | ) | (0.01 | ) | 0.22 | (1.57 | ) | (0.09 | ) | (0.22 | ) | (0.11 | ) | (0.48 | ) | |||||||||
Adjusted diluted net earnings per share(a) | $ | 0.04 | $ | 0.29 | $ | 0.43 | $ | 0.34 | $ | 0.20 | $ | 0.40 | $ | 0.75 | $ | 0.77 | ||||||||
Diluted weighted average # of shares outstanding | 350.5 | 352.0 | 352.2 | 351.0 | 384.1 | 387.2 | 387.5 | 387.6 | ||||||||||||||||
Total Net Sales | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | $ | 2,928 | $ | 2,521 | ||||||||
Cost of goods sold | 1,449 | 1,562 | 1,744 | 1,812 | 1,691 | 1,910 | 2,432 | 2,055 | ||||||||||||||||
Gross Margin | $ | 130 | $ | 192 | $ | 241 | $ | 280 | $ | 243 | $ | 295 | $ | 496 | $ | 466 | ||||||||
SG&A | 81 | 71 | 66 | 83 | 94 | 79 | 79 | 90 | ||||||||||||||||
Other operating expense | 19 | 27 | (39 | ) | 70 | 68 | 20 | 24 | 118 | |||||||||||||||
Operating earnings | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | $ | 393 | $ | 258 | ||||||||
Interest expense, net | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | (41 | ) | (31 | ) | ||||||||
Consolidated foreign currency gain/(loss) | 9 | 9 | 59 | (27 | ) | (32 | ) | (79 | ) | (2 | ) | (79 | ) | |||||||||||
Earnings from consolidated companies before income taxes | 9 | 69 | 237 | 59 | (7 | ) | 70 | 342 | 145 | |||||||||||||||
Provision for (benefit from) income taxes | 10 | (23 | ) | 18 | 490 | (50 | ) | 4 | 91 | 33 | ||||||||||||||
Earnings (loss) from consolidated companies | $ | (1 | ) | $ | 91 | $ | 220 | $ | (431 | ) | $ | 43 | $ | 66 | $ | 251 | $ | 112 | ||||||
Equity in net earnings (loss) of nonconsolidated companies | — | 6 | 10 | 1 | (3 | ) | 2 | (2 | ) | (1 | ) | |||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | — | 2 | 1 | (2 | ) | — | 2 | (1 | ) | ||||||||||||||
Net earnings (loss) attributable to Mosaic | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | $ | 247 | $ | 112 | ||||||
After tax Notable items included in earnings | $ | (11 | ) | $ | (5 | ) | $ | 79 | $ | (550 | ) | $ | (35 | ) | $ | (86 | ) | $ | (41 | ) | $ | (185 | ) | |
Gross Margin Rate | 8 | % | 11 | % | 12 | % | 13 | % | 13 | % | 13 | % | 17 | % | 18 | % | ||||||||
Effective Tax Rate (including discrete tax) | 112 | % | (33 | )% | 7 | % | 828 | % | 714 | % | 5 | % | 26 | % | 23 | % | ||||||||
Discrete Tax benefit (expense) | $ | (9 | ) | $ | 16 | $ | 5 | $ | (463 | ) | $ | 48 | $ | 13 | $ | (29 | ) | $ | (33 | ) | ||||
Depreciation, Depletion and Amortization | $ | 159 | $ | 166 | $ | 169 | $ | 172 | $ | 217 | $ | 217 | $ | 215 | $ | 235 | ||||||||
Accretion Expense | $ | 7 | $ | 6 | $ | 6 | $ | 6 | $ | 12 | $ | 12 | $ | 13 | $ | 11 | ||||||||
Share-Based Compensation Expense | $ | 16 | $ | 5 | $ | 4 | $ | 3 | $ | 15 | $ | 7 | $ | 3 | $ | 2 | ||||||||
Notable Items | $ | 1 | $ | 12 | $ | (93 | ) | $ | 95 | $ | 115 | $ | 128 | $ | 13 | $ | 176 | |||||||
Adjusted EBITDA(b) | $ | 217 | $ | 300 | $ | 368 | $ | 375 | $ | 399 | $ | 480 | $ | 622 | $ | 603 | ||||||||
Net cash provided by (used in) operating activities | $ | 146 | $ | 243 | $ | 136 | $ | 411 | $ | (71 | ) | $ | 807 | $ | 524 | $ | 150 | |||||||
Cash paid for interest (net of amount capitalized) | 8 | 67 | 24 | 57 | 11 | 78 | 9 | 76 | ||||||||||||||||
Cash paid for income taxes (net of refunds) | — | (9 | ) | (8 | ) | (53 | ) | 13 | 14 | (13 | ) | (48 | ) | |||||||||||
Net cash used in investing activities | $ | (245 | ) | $ | (177 | ) | $ | (221 | ) | $ | (25 | ) | $ | (1,220 | ) | $ | (197 | ) | $ | (244 | ) | $ | (284 | ) |
Capital expenditures | (224 | ) | (169 | ) | (198 | ) | (230 | ) | (223 | ) | (201 | ) | (241 | ) | (289 | ) | ||||||||
Net cash (used in) provided by financing activities | $ | 102 | $ | (85 | ) | $ | 94 | $ | 1,090 | $ | (213 | ) | $ | (170 | ) | $ | (297 | ) | $ | (45 | ) | |||
Cash dividends paid | (96 | ) | (53 | ) | (53 | ) | (9 | ) | (10 | ) | (10 | ) | (10 | ) | (10 | ) | ||||||||
Effect of exchange rate changes on cash | $ | 3 | $ | 2 | $ | 18 | $ | (8 | ) | $ | 13 | $ | (65 | ) | $ | (11 | ) | $ | (1 | ) | ||||
Net change in cash and cash equivalents | $ | 6 | $ | (18 | ) | $ | 27 | $ | 1,468 | $ | (1,491 | ) | $ | 375 | $ | (28 | ) | $ | (180 | ) | ||||
Short-term debt | $ | 124 | $ | 65 | $ | 59 | $ | 6 | $ | 72 | $ | 20 | $ | 26 | $ | 12 | ||||||||
Long-term debt (including current portion) | 3,828 | 3,843 | 3,856 | 5,222 | 5,074 | 4,998 | 4,584 | 4,518 | ||||||||||||||||
Cash & cash equivalents | 675 | 661 | 686 | 2,154 | 659 | 1,035 | 1,030 | 848 | ||||||||||||||||
Net debt | $ | 3,276 | $ | 3,247 | $ | 3,229 | $ | 3,074 | $ | 4,487 | $ | 3,983 | $ | 3,580 | $ | 3,682 | ||||||||
Segment Contributions (in millions) | ||||||||||||||||||||||||
Phosphates | $ | 839 | $ | 975 | $ | 779 | $ | 997 | $ | 866 | $ | 1,053 | $ | 1,041 | $ | 926 | ||||||||
Potash | 414 | 468 | 474 | 496 | 404 | 569 | 609 | 592 | ||||||||||||||||
Mosaic Fertilizantes | 427 | 467 | 806 | 520 | 665 | 713 | 1,400 | 969 | ||||||||||||||||
Corporate and Other(c) | (102 | ) | (155 | ) | (74 | ) | 79 | (1 | ) | (130 | ) | (122 | ) | 34 | ||||||||||
Total net sales | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | $ | 2,928 | $ | 2,521 | ||||||||
Phosphates | $ | 37 | $ | 45 | $ | 103 | $ | 71 | $ | 78 | $ | 142 | $ | 170 | $ | 83 | ||||||||
Potash | 56 | 100 | 92 | 97 | 92 | 121 | 149 | 149 | ||||||||||||||||
Mosaic Fertilizantes | 5 | 11 | 38 | 10 | 13 | 17 | 123 | 85 | ||||||||||||||||
Corporate and Other(c) | (67 | ) | (61 | ) | (17 | ) | (51 | ) | (102 | ) | (84 | ) | (49 | ) | (59 | ) | ||||||||
Consolidated operating earnings | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | $ | 393 | $ | 258 |
Phosphates(d) | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | 2,235 | 1,876 | ||||||||||||||||
Potash(d) | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | 2,428 | 2,301 | ||||||||||||||||
Mosaic Fertilizantes | 646 | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | 3,595 | 2,108 | ||||||||||||||||
Corporate and Other | 689 | 319 | 333 | 497 | 266 | 348 | 311 | 438 | ||||||||||||||||
Total finished product tonnes sold ('000 tonnes) | 5,580 | 6,392 | 6,840 | 6,609 | 5,485 | 6,860 | 8,569 | 6,723 | ||||||||||||||||
Percent specialty(e) | 19 | % | 22 | % | 21 | % | 18 | % | 22 | % | 25 | % | 26 | % | 23 | % |
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 839 | $ | 975 | $ | 779 | $ | 997 | $ | 866 | $ | 1,053 | $ | 1,041 | $ | 926 | ||||||||
Cost of Goods Sold | 783 | 898 | 712 | 864 | 769 | 899 | 861 | 775 | ||||||||||||||||
Gross Margin | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 97 | $ | 154 | $ | 180 | $ | 151 | ||||||||
Notable Items Included in Gross Margin | — | — | — | — | (15 | ) | (6 | ) | — | — | ||||||||||||||
Adjusted Gross Margin(b) | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 112 | $ | 160 | $ | 180 | $ | 151 | ||||||||
SG&A | 10 | 14 | 11 | 15 | 13 | 11 | 11 | 13 | ||||||||||||||||
Other operating (income) expense | 9 | 18 | (47 | ) | 47 | 6 | 1 | (1 | ) | 55 | ||||||||||||||
Operating Earnings | $ | 37 | $ | 45 | $ | 103 | $ | 71 | $ | 78 | $ | 142 | $ | 170 | $ | 83 | ||||||||
Plus: Depreciation, Depletion and Amortization | 80 | 83 | 86 | 89 | 99 | 102 | 101 | 101 | ||||||||||||||||
Plus: Accretion Expense | 6 | 5 | 5 | 5 | 9 | 10 | 10 | 8 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (2 | ) | (4 | ) | (6 | ) | 1 | 4 | 1 | (1 | ) | 7 | ||||||||||||
Plus: Other Income (Expense) | (2 | ) | 2 | 1 | (1 | ) | (5 | ) | (3 | ) | (7 | ) | — | |||||||||||
Plus: Equity in net earnings (loss) of nonconsolidated companies | — | 5 | 10 | 1 | (4 | ) | 1 | (2 | ) | (1 | ) | |||||||||||||
Less: Earnings (loss) from Consolidated Noncontrolling Interests | 2 | (2 | ) | — | 2 | (1 | ) | 1 | 2 | (1 | ) | |||||||||||||
Plus: Notables Items | 5 | 23 | (43 | ) | 38 | 16 | (1 | ) | 8 | 41 | ||||||||||||||
Adjusted EBITDA(b) | $ | 122 | $ | 161 | $ | 155 | $ | 201 | $ | 198 | $ | 251 | $ | 277 | $ | 240 | ||||||||
Capital expenditures | $ | 103 | $ | 101 | $ | 87 | $ | 110 | $ | 100 | $ | 92 | $ | 103 | $ | 119 | ||||||||
Gross Margin $ / tonne of finished product | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 49 | $ | 67 | $ | 80 | $ | 81 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 57 | $ | 70 | $ | 80 | $ | 81 | ||||||||
Gross margin as a percent of sales | 7 | % | 8 | % | 9 | % | 13 | % | 11 | % | 15 | % | 17 | % | 16 | % | ||||||||
Freight included in finished goods (in millions) | $ | 79 | $ | 103 | $ | 78 | $ | 107 | $ | 77 | $ | 100 | $ | 92 | $ | 86 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
DAP/MAP | 1,486 | 1,706 | 1,483 | 1,663 | 1,295 | 1,332 | 1,261 | 1,059 | ||||||||||||||||
Specialty(f) | 786 | 876 | 627 | 833 | 650 | 970 | 974 | 817 | ||||||||||||||||
Total Finished Product(d) | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | 2,235 | 1,876 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 369 | $ | 377 | $ | 369 | $ | 399 | $ | 431 | $ | 450 | $ | 454 | $ | 479 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(h) | 2,303 | 2,461 | 2,339 | 2,322 | 2,045 | 2,081 | 2,115 | 2,117 | ||||||||||||||||
Operating Rate(i) | 79 | % | 84 | % | 80 | % | 79 | % | 84 | % | 86 | % | 87 | % | 87 | % | ||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||
Ammonia (tonne)(j) | $ | 285 | $ | 373 | $ | 283 | $ | 298 | $ | 344 | $ | 325 | $ | 329 | $ | 343 | ||||||||
Sulfur (long ton)(k) | $ | 87 | $ | 90 | $ | 88 | $ | 97 | $ | 128 | $ | 139 | $ | 137 | $ | 149 | ||||||||
Blended rock | $ | 59 | $ | 58 | $ | 63 | $ | 55 | $ | 55 | $ | 59 | $ | 57 | $ | 59 | ||||||||
Cash conversion costs / finished product tonne | $ | 68 | $ | 65 | $ | 68 | $ | 64 | $ | 64 | $ | 64 | $ | 63 | $ | 61 | ||||||||
Cash rock costs produced / tonne | $ | 40 | $ | 40 | $ | 40 | $ | 35 | $ | 35 | $ | 36 | $ | 40 | $ | 43 | ||||||||
Phosphate Rock | ||||||||||||||||||||||||
Sales Volumes ('000 tonnes)(l) | — | — | — | — | 360 | 241 | 399 | 400 | ||||||||||||||||
Average rock selling price (destination)(m) | $ | — | $ | — | $ | — | $ | — | $ | 79 | $ | 69 | $ | 68 | $ | 67 | ||||||||
Gross margin $ / rock tonne | $ | — | $ | — | $ | — | $ | — | $ | 4 | $ | (3 | ) | $ | 3 | $ | (3 | ) | ||||||
Freight included in rock (in millions) | $ | — | $ | — | $ | — | $ | — | $ | 8 | $ | 4 | $ | 3 | $ | 4 |
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 414 | $ | 468 | $ | 474 | $ | 496 | $ | 404 | $ | 569 | $ | 609 | $ | 592 | ||||||||
Cost of Goods Sold | 345 | 358 | 376 | 383 | 301 | 437 | 448 | 390 | ||||||||||||||||
Gross Margin | $ | 69 | $ | 110 | $ | 99 | $ | 114 | $ | 103 | $ | 132 | $ | 161 | $ | 202 | ||||||||
Notable Items Included in Gross Margin | (3 | ) | — | (10 | ) | — | (5 | ) | (4 | ) | — | — | ||||||||||||
Adjusted Gross Margin(b) | $ | 72 | $ | 110 | $ | 109 | $ | 114 | $ | 108 | $ | 136 | $ | 161 | $ | 202 | ||||||||
SG&A | 8 | 8 | 6 | 10 | 8 | 9 | 8 | 10 | ||||||||||||||||
Other operating (income) expense | 6 | 2 | 1 | 7 | 3 | 2 | 4 | 43 | ||||||||||||||||
Operating Earnings | $ | 56 | $ | 100 | $ | 92 | $ | 97 | $ | 92 | $ | 121 | $ | 149 | $ | 149 | ||||||||
Plus: Depreciation, Depletion and Amortization | 70 | 73 | 73 | 72 | 76 | 73 | 73 | 80 | ||||||||||||||||
Plus: Accretion Expense | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 8 | 30 | 55 | (13 | ) | (30 | ) | (23 | ) | 22 | (86 | ) | ||||||||||||
Plus: Other Income (Expense) | — | — | — | — | — | — | — | 1 | ||||||||||||||||
Plus: Notable Items | (5 | ) | (30 | ) | (45 | ) | 13 | 35 | 27 | (22 | ) | 125 | ||||||||||||
Adjusted EBITDA(b) | $ | 130 | $ | 174 | $ | 175 | $ | 170 | $ | 174 | $ | 199 | $ | 223 | $ | 270 | ||||||||
Capital expenditures | $ | 106 | $ | 61 | $ | 102 | $ | 103 | $ | 104 | $ | 80 | $ | 98 | $ | 148 | ||||||||
Gross Margin $ / tonne of finished product | $ | 35 | $ | 50 | $ | 44 | $ | 51 | $ | 61 | $ | 56 | $ | 66 | $ | 88 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 37 | $ | 50 | $ | 49 | $ | 51 | $ | 64 | $ | 58 | $ | 66 | $ | 88 | ||||||||
Gross margin as a percent of sales | 17 | % | 23 | % | 21 | % | 23 | % | 25 | % | 23 | % | 26 | % | 34 | % | ||||||||
Supplemental Cost Information | ||||||||||||||||||||||||
Canadian resource taxes | $ | 23 | $ | 33 | $ | (5 | ) | $ | 19 | $ | 26 | $ | 34 | $ | 41 | $ | 59 | |||||||
Royalties | $ | 5 | $ | 6 | $ | 52 | $ | 9 | $ | 8 | $ | 9 | $ | 10 | $ | 12 | ||||||||
Brine inflow expenses | $ | 39 | $ | 38 | $ | 37 | $ | 36 | $ | 39 | $ | 39 | $ | 37 | $ | 39 | ||||||||
Freight(n) | $ | 69 | $ | 70 | $ | 69 | $ | 80 | $ | 71 | $ | 87 | $ | 84 | $ | 71 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
MOP | 1,817 | 2,017 | 2,062 | 2,026 | 1,525 | 2,125 | 2,187 | 2,143 | ||||||||||||||||
Specialty(o) | 156 | 174 | 157 | 191 | 165 | 239 | 241 | 158 | ||||||||||||||||
Total Finished Product(d) | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | 2,428 | 2,301 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 210 | $ | 214 | $ | 214 | $ | 224 | $ | 239 | $ | 241 | $ | 251 | $ | 257 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Production Volume | 2,048 | 2,302 | 2,151 | 2,149 | 2,275 | 2,151 | 2,220 | 2,593 | ||||||||||||||||
Operating Rate | 83 | % | 93 | % | 87 | % | 87 | % | 87 | % | 82 | % | 85 | % | 99 | % | ||||||||
MOP cash costs of production including brine / production tonne(p) | $ | 86 | $ | 77 | $ | 101 | $ | 87 | $ | 86 | $ | 85 | $ | 79 | $ | 72 | ||||||||
MOP cash costs of brine management / production tonne | $ | 16 | $ | 14 | $ | 15 | $ | 14 | $ | 15 | $ | 16 | $ | 14 | $ | 13 | ||||||||
Average CAD / USD | $ | 1.323 | $ | 1.345 | $ | 1.253 | $ | 1.270 | $ | 1.264 | $ | 1.291 | $ | 1.307 | $ | 1.322 |
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 427 | $ | 467 | $ | 806 | $ | 520 | $ | 665 | $ | 713 | $ | 1,400 | $ | 969 | ||||||||
Cost of Goods Sold | 409 | 442 | 754 | 487 | 606 | 660 | 1,248 | 851 | ||||||||||||||||
Gross Margin | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | $ | 152 | $ | 118 | ||||||||
Notable Items Included in Gross Margin | — | — | — | — | — | — | — | — | ||||||||||||||||
Adjusted Gross Margin(b) | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | $ | 152 | $ | 118 | ||||||||
SG&A | 15 | 17 | 18 | 22 | 21 | 26 | 23 | 24 | ||||||||||||||||
Other operating (income) expense | (1 | ) | (2 | ) | (3 | ) | 1 | 25 | 10 | 6 | 9 | |||||||||||||
Operating Earnings | $ | 5 | $ | 11 | $ | 38 | $ | 10 | $ | 13 | $ | 17 | $ | 123 | $ | 85 | ||||||||
Plus: Depreciation, Depletion and Amortization | 4 | 4 | 4 | 4 | 37 | 37 | 36 | 49 | ||||||||||||||||
Plus: Accretion Expense | — | — | — | — | 2 | 1 | 2 | 2 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (1 | ) | (18 | ) | 14 | (19 | ) | (5 | ) | (57 | ) | (21 | ) | (2 | ) | |||||||||
Plus: Other Income (Expense) | (3 | ) | (1 | ) | 1 | (1 | ) | — | (1 | ) | (1 | ) | 1 | |||||||||||
Less: Earnings from Consolidated Noncontrolling Interests | 1 | — | 2 | 1 | — | — | 1 | 2 | ||||||||||||||||
Plus: Notable Items | 1 | 18 | (14 | ) | 19 | 21 | 63 | 25 | 5 | |||||||||||||||
Adjusted EBITDA(b) | $ | 5 | $ | 14 | $ | 40 | $ | 13 | $ | 68 | $ | 60 | $ | 163 | $ | 138 | ||||||||
Capital expenditures | $ | 8 | $ | 5 | $ | 4 | $ | 16 | $ | 18 | $ | 29 | $ | 40 | $ | 61 | ||||||||
Gross Margin $ / tonne of finished product | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | $ | 42 | $ | 56 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | $ | 42 | $ | 56 | ||||||||
Gross margin as a percent of sales | 4 | % | 5 | % | 6 | % | 6 | % | 9 | % | 7 | % | 11 | % | 12 | % | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||
Phosphate produced in Brazil | 50 | 82 | 85 | 85 | 427 | 636 | 1,214 | 570 | ||||||||||||||||
Potash produced in Brazil | — | — | — | — | 99 | 66 | 82 | 75 | ||||||||||||||||
Purchased nutrients | 1,089 | 1,218 | 2,093 | 1,314 | 1,058 | 1,144 | 2,299 | 1,463 | ||||||||||||||||
Total Finished Product | 1,139 | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | 3,595 | 2,108 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 375 | $ | 359 | $ | 370 | $ | 372 | $ | 420 | $ | 386 | $ | 389 | $ | 460 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(q) | — | — | — | — | 987 | 822 | 920 | 1,019 | ||||||||||||||||
Operating Rate | — | % | — | % | — | % | — | % | 81 | % | 67 | % | 75 | % | 82 | % | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 169 | 176 | 164 | 150 | 70 | 216 | 97 | 156 | ||||||||||||||||
MicroEssentials® from Mosaic | 314 | 365 | 178 | 55 | 182 | 392 | 394 | 90 | ||||||||||||||||
Potash from Mosaic/Canpotex | 408 | 868 | 451 | 346 | 389 | 770 | 841 | 361 | ||||||||||||||||
Average BRL / USD | $ | 3.144 | $ | 3.215 | $ | 3.168 | $ | 3.308 | $ | 3.246 | $ | 3.604 | $ | 3.955 | $ | 3.804 |
Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | (102 | ) | $ | (155 | ) | $ | (74 | ) | $ | 79 | $ | (1 | ) | $ | (130 | ) | $ | (122 | ) | $ | 34 | ||
Cost of Goods Sold | (88 | ) | (136 | ) | (98 | ) | 78 | 15 | (86 | ) | (125 | ) | 39 | |||||||||||
Gross Margin (Loss) | $ | (15 | ) | $ | (19 | ) | $ | 23 | $ | 1 | $ | (16 | ) | $ | (44 | ) | $ | 3 | $ | (5 | ) | |||
Notable items Included in Gross Margin | (1 | ) | 3 | 2 | (17 | ) | (12 | ) | (34 | ) | 11 | 2 | ||||||||||||
Adjusted Gross Margin (Loss)(b) | $ | (14 | ) | $ | (22 | ) | $ | 21 | $ | 18 | $ | (4 | ) | $ | (10 | ) | $ | (8 | ) | $ | (7 | ) | ||
SG&A | 48 | 33 | 31 | 37 | 52 | 33 | 37 | 43 | ||||||||||||||||
Other operating (income) expense | 4 | 9 | 9 | 15 | 34 | 7 | 15 | 11 | ||||||||||||||||
Operating Earnings (Loss) | $ | (67 | ) | $ | (61 | ) | $ | (17 | ) | $ | (51 | ) | $ | (102 | ) | $ | (84 | ) | $ | (49 | ) | $ | (59 | ) |
Plus: Depreciation, Depletion and Amortization | 5 | 6 | 5 | 7 | 5 | 5 | 5 | 5 | ||||||||||||||||
Plus: Share-Based Compensation Expense | 16 | 5 | 4 | 3 | 15 | 7 | 3 | 2 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 3 | 1 | (5 | ) | 5 | (1 | ) | — | (2 | ) | 2 | |||||||||||||
Plus: Other Income (Expense) | — | — | — | — | (2 | ) | 2 | (1 | ) | (2 | ) | |||||||||||||
Less: Earnings (Loss) from Consolidated Noncontrolling Interests | (3 | ) | 2 | — | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | ||||||||||
Plus: Notable Items | (2 | ) | (4 | ) | 7 | 25 | 43 | 39 | 2 | 5 | ||||||||||||||
Adjusted EBITDA(b) | $ | (42 | ) | $ | (55 | ) | $ | (6 | ) | $ | (9 | ) | $ | (41 | ) | $ | (30 | ) | $ | (41 | ) | $ | (45 | ) |
Elimination of profit in inventory income (loss) included in COGS | $ | (19 | ) | $ | (28 | ) | $ | 20 | $ | (18 | ) | $ | (8 | ) | $ | (21 | ) | $ | (7 | ) | $ | (7 | ) | |
Unrealized gain (loss) on derivatives included in COGS | $ | (1 | ) | $ | 3 | $ | 2 | $ | (17 | ) | $ | (12 | ) | $ | (34 | ) | $ | 11 | $ | 2 | ||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 196 | 319 | 333 | 497 | 266 | 348 | 311 | 438 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 305 | $ | 323 | $ | 373 | $ | 387 | $ | 333 | $ | 396 | $ | 377 | $ | 431 | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | — | 232 | 222 | 50 | — | 22 | 47 | 47 | ||||||||||||||||
MicroEssentials® from Mosaic | — | — | — | 68 | — | 8 | — | 44 | ||||||||||||||||
Potash from Mosaic/Canpotex | 242 | 86 | 147 | 198 | 240 | 108 | 125 | 278 |
Q4 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (79 | ) | $ | 11 | $ | (0.17 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | — | |||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (6 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (33 | ) | (0.09 | ) | |||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (30 | ) | 4 | (0.06 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (18 | ) | 3 | (0.04 | ) | |||||||
Asset write-off | Potash | Other operating income (expense) | (39 | ) | 5 | (0.09 | ) | |||||||
Total Notable Items | $ | (176 | ) | $ | (9 | ) | $ | (0.48 | ) |
Q3 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (2 | ) | $ | — | $ | — | |||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 11 | (2 | ) | 0.02 | ||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (3 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Realized loss on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | (7 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (29 | ) | (0.08 | ) | |||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | (8 | ) | — | (0.02 | ) | |||||||
Total Notable Items | $ | (13 | ) | $ | (28 | ) | $ | (0.11 | ) |
Q2 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (79 | ) | $ | 18 | $ | (0.16 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (34 | ) | 8 | (0.07 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (6 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (4 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (6 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 13 | 0.04 | |||||||||
Sales tax refund | Phosphates | Other operating income (expense) | 6 | (1 | ) | 0.01 | ||||||||
Total Notable Items | $ | (128 | ) | $ | 42 | $ | (0.22 | ) |
Q1 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | 9 | $ | (0.06 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (12 | ) | 3 | (0.02 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (18 | ) | 5 | (0.03 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (8 | ) | 2 | (0.02 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (16 | ) | 5 | (0.03 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (5 | ) | 2 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (15 | ) | 4 | (0.03 | ) | |||||||
Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Severance | Corporate and Other | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 48 | 0.13 | |||||||||
Total Notable Items | $ | (115 | ) | $ | 80 | $ | (0.09 | ) |
Q4 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (27 | ) | $ | 2 | $ | (0.07 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (17 | ) | 1 | (0.05 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (12 | ) | — | (0.04 | ) | |||||||
Discrete tax items relating to changes in US tax laws | Consolidated | (Provision for) benefit from income taxes | — | (456 | ) | (1.30 | ) | |||||||
Other discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | — | ||||||||
Restructuring | Phosphates | Other operating income (expense) | (20 | ) | 2 | (0.05 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (11 | ) | 1 | (0.03 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (8 | ) | 1 | (0.02 | ) | |||||||
Resolution of royalty matter | Potash | Cost of goods sold | — | 2 | 0.01 | |||||||||
Total Notable Items | $ | (97 | ) | $ | (454 | ) | $ | (1.57 | ) |
Q3 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 58 | $ | — | $ | 0.17 | ||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (6 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 5 | 0.01 | |||||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | (0.01 | ) | |||||||
Gain on sale of land | Phosphates | Other operating income (expense) | 52 | — | 0.15 | |||||||||
Change in Canadian tax regulations | Potash | Cost of goods sold | (10 | ) | (17 | ) | (0.08 | ) | ||||||
Asset write-off | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | 91 | $ | (12 | ) | $ | 0.22 |
Q2 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | 1 | $ | 0.03 | ||||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 3 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate & Other | Other operating income (expense) | (5 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 16 | 0.04 | |||||||||
Pre-issuance hedging loss | Consolidated | Interest Expense | (8 | ) | (1 | ) | (0.02 | ) | ||||||
Water loss expense | Phosphates | Other operating income (expense) | (14 | ) | (1 | ) | (0.04 | ) | ||||||
Miski Mayo | Phosphates | Equity in net earnings (loss) of nonconsolidated companies | (5 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (20 | ) | $ | 15 | $ | (0.01 | ) |
Q1 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | (1 | ) | $ | 0.02 | |||||
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 | ) |
(a) | Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See “Non-GAAP Reconciliations”. |
(b) | See definitions of Adjusted EBITDA and Adjusted Gross Margin under “Non-GAAP Reconciliations”. |
(c) | Includes elimination of intersegment sales. |
(d) | Finished product sales volumes include intersegment sales. |
(e) | Includes MicroEssentials, K-Mag, Aspire and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes. |
(f) | Includes MicroEssentials and animal feed finished specialty products. |
(g) | Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China. |
(h) | Includes crop nutrient dry concentrates and animal feed ingredients. |
(i) | Starting in Q1 2018, Plant City was excluded from operational capacity. |
(j) | Amounts are representative of our average ammonia costs in cost of goods sold. |
(k) | Amounts are representative of our average sulfur costs in cost of goods sold. |
(l) | Rock sales volumes include intersegment sales. |
(m) | Average selling price of all rock sold. |
(n) | Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales. |
(o) | Includes K-Mag, Aspire and animal feed finished specialty products. |
(p) | MOP production cash costs including brine are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. |
(q) | Includes phosphate and potash crop nutrients and animal feed ingredients. |
(r) | Tax impact is based on our expected annual effective tax rate. |
(in millions) | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | ||||||||||||||||
Consolidated Net Income (Loss) | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | $ | 247 | $ | 112 | ||||||
Less: Consolidated Interest Expense, Net | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | (41 | ) | (31 | ) | ||||||||
Plus: Consolidated Depreciation, Depletion & Amortization | 159 | 166 | 169 | 172 | 217 | 217 | 215 | 235 | ||||||||||||||||
Plus: Accretion Expense | 7 | 6 | 6 | 6 | 12 | 12 | 13 | 11 | ||||||||||||||||
Plus: Share-Based Compensation Expense | 16 | 5 | 4 | 3 | 15 | 7 | 3 | 2 | ||||||||||||||||
Plus: Consolidated Provision for (Benefit from) Income Taxes | 10 | (23 | ) | 18 | 490 | (50 | ) | 4 | 91 | 33 | ||||||||||||||
Plus: Notable Items | 1 | 12 | (93 | ) | 95 | 115 | 128 | 13 | 176 | |||||||||||||||
Consolidated Adjusted EBITDA | $ | 217 | $ | 300 | $ | 368 | $ | 375 | $ | 399 | $ | 480 | $ | 622 | $ | 603 |