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Marketable Securities Held in Trusts
 3 Months Ended
Mar. 31, 2020
Investments, Debt and Equity Securities [Abstract]  
Marketable Securities Held in Trusts Marketable Securities Held in Trusts
In August 2016, Mosaic deposited $630 million into two trust funds (together, the “RCRA Trusts”) created to provide additional financial assurance in the form of cash for the estimated costs (“Gypstack Closure Costs”) of closure and long term care of our Florida and Louisiana phosphogypsum management systems (“Gypstacks”), as described further in Note 10 of our Notes to Condensed Consolidated Financial Statements. Our actual Gypstack Closure Costs are generally expected to be paid by us in the normal course of our Phosphate business; however, funds held in each of the RCRA Trusts can be drawn by the applicable governmental authority in the event we cannot perform our closure and long term care obligations. When our estimated Gypstack Closure Costs with respect to the facilities associated with a RCRA Trust are sufficiently lower than the amount on deposit in that RCRA Trust, we have the right to request that the excess funds be released to us. The same is true for the RCRA Trust balance remaining after the completion of our obligations, which will be performed over a period that may not end until three decades or more after a Gypstack has been closed. The investments held by the RCRA Trusts are managed by independent investment managers with discretion to buy, sell, and invest pursuant to the objectives and standards set forth in the related trust agreements. Amounts reserved to be held or held in the RCRA Trusts (including losses or reinvested earnings) are included in other assets on our Condensed Consolidated Balance Sheets.
The RCRA Trusts hold investments, which are restricted from our general use, in marketable debt securities classified as available-for-sale and are carried at fair value. As a result, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is impaired on an other-than-temporary basis.
We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. We determine the fair market values of our available-for-sale securities and certain other assets based on the fair value hierarchy described below:
Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.
Level 2: Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3: Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
There were no other-than-temporary impairment write-downs on available-for-sale securities during the three months ended March 31, 2020.
The estimated fair value of the investments in the RCRA Trusts as of March 31, 2020 and December 31, 2019 are as follows:
 
March 31, 2020
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Level 1
 
 
 
 
 
 
 
    Cash and cash equivalents
$
2.0

 
$
—

 
$
—

 
$
2.0

Level 2
 
 
 
 
 
 
 
    Corporate debt securities
194.3

 
4.5

 
(2.5
)
 
196.3

    Municipal bonds
190.7

 
3.7

 
(1.2
)
 
193.2

    U.S. government bonds
288.4

 
13.9

 
—

 
302.3

Total
$
675.4

 
$
22.1

 
$
(3.7
)
 
$
693.8

 
 
 
 
 
 
 
 
 
December 31, 2019
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
Level 1
 
 
 
 
 
 
 
    Cash and cash equivalents
$
3.4

 
$
—

 
$
—

 
$
3.4

Level 2
 
 
 
 
 
 
 
    Corporate debt securities
194.2

 
5.8

 
(0.1
)
 
199.9

    Municipal bonds
188.3

 
4.4

 
(0.4
)
 
192.3

    U.S. government bonds
280.6

 
3.2

 
(2.5
)
 
281.3

Total
$
666.5

 
$
13.4

 
$
(3.0
)
 
$
676.9


The following tables show gross unrealized losses and fair values of the RCRA Trusts' available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary as of March 31, 2020 and December 31, 2019:
 
March 31, 2020
 
December 31, 2019
(in millions)
Fair
Value
 
Gross
Unrealized
Losses(a)
 
Fair
Value
 
Gross
Unrealized
Losses(a)
Securities that have been in a continuous loss position for less than 12 months:
 
 
 
 
 
 
 
Corporate debt securities
$
68.1

 
$
(2.5
)
 
$
17.9

 
$
—

Municipal bonds
57.9

 
(0.9
)
 
11.7

 
(0.1
)
U.S. government bonds
0.1

 
—

 
195.4

 
(2.5
)
 
126.1

 
(3.4
)
 
225.0

 
(2.6
)
Securities that have been in a continuous loss position for more than 12 months:
 
 
 
 
 
 
 
Corporate debt securities
3.0

 
—

 
20.7

 
(0.1
)
Municipal bonds
5.8

 
(0.3
)
 
14.7

 
(0.3
)
U.S. government bonds
—

 
—

 
—

 
—

 
8.8

 
(0.3
)
 
35.4

 
(0.4
)
Total
$
134.9

 
$
(3.7
)
 
$
260.4

 
$
(3.0
)


The following table summarizes the balance by contractual maturity of the available-for-sale debt securities invested by the RCRA Trusts as of March 31, 2020. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations before the underlying contracts mature.
 
March 31, 2020
Due in one year or less
$
34.2

Due after one year through five years
291.1

Due after five years through ten years
329.8

Due after ten years
36.7

Total debt securities
$
691.8


For the three months ended March 31, 2020, realized gains were $5.8 million and realized losses were $0.5 million. For the three months ended March 31, 2019, realized gains were $3.1 million and realized losses were $0.8 million.