UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 3, 2015
 
 
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)

 

 
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)
Registrant’s telephone number, including area code: (800) 918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
 

 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
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))

 





Item 2.02. Results of Operations and Financial Condition.
The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of The Mosaic Company’s (“Mosaic”) announcement regarding its earnings and results of operations for the quarter ended September 30, 2015 as presented in a press release issued on November 3, 2015.
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is certain performance data for the period ended September 30, 2015 to be published on Mosaic’s website.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The exhibits listed in the Exhibit Index hereto are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.





SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
THE MOSAIC COMPANY
 
 
 
 
Date: November 3, 2015
 
 
 
By:
 
/s/ Mark J. Isaacson
 
 
 
 
Name:
 
Mark J. Isaacson
 
 
 
 
Title:
 
Senior Vice President, General Counsel
 
 
 
 
 
 
and Corporate Secretary






EXHIBIT INDEX
Exhibit No.
  
Description
 
 
99.1

  
Press release, dated November 3, 2015, of The Mosaic Company regarding its earnings and results of operations for quarter ended September 30, 2015
 
 
99.2

  
Performance data for the period ended September 30, 2015






Exhibit 99.1
 
 
 
 
 
 
 
 
The Mosaic Company
3033 Campus Drive, Suite E490
Plymouth, MN 55441
www.mosaicco.com
 
 
 
 
 
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
  
 
FOR IMMEDIATE RELEASE
 

THE MOSAIC COMPANY REPORTS THIRD QUARTER 2015 RESULTS

PLYMOUTH, MN, November 3, 2015 - The Mosaic Company (NYSE: MOS) today reported third quarter 2015 net earnings of $160 million, compared to $202 million in the third quarter of 2014. Earnings per diluted share were $0.45 in the quarter compared to $0.54 last year. Notable items negatively impacted current quarter earnings per share by $0.17, primarily due to non-cash foreign currency transaction losses. Adjusted earnings per share, excluding notable items, were $0.62 per share in the quarter, compared to $0.56 per share last year. Mosaic’s net sales in the third quarter were $2.1 billion, down from $2.3 billion in sales last year, as a result of lower volumes and prices. Operating earnings during the quarter were $246 million, down from $277 million a year ago. The year-over-year change was driven by lower net sales, partially offset by no restructuring expenses during the current year period.
“Over the course of the last two years, we have transformed Mosaic to become more efficient and made great progress in optimizing our balance sheet. We continued to grow adjusted earnings per share, despite notably weaker crop nutrient prices and a challenging macroeconomic environment,” said Joc O’Rourke, Mosaic’s President and Chief Executive Officer.
Cash flow from operating activities in the third quarter of 2015 was $184 million, which is down from $375 million in the prior year period. Capital expenditures totaled $245 million in the quarter. Mosaic’s total cash and cash equivalents were $1.3 billion, after setting aside $630 million, which is committed to be placed into trusts as financial assurance to support the closure and long-term care of the Company’s phosphogypsum management systems. Long-term debt, including current maturities, was $3.8 billion as of September 30, 2015.
“As anticipated, this quarter’s results reflect lower sequential production levels resulting in higher costs per tonne at our potash and phosphate facilities during a seasonally slow demand period,” said Rich Mack, Mosaic’s Executive Vice President and Chief Financial Officer. “Cost reduction efforts and focused execution helped maintain margin rates, which, in combination







with our share repurchases and a lower effective tax rate, drove an improvement in adjusted earnings per share compared to a year ago.”
Business Highlights - Third Quarter 2015
The Company’s progress against strategic priorities is positively impacting financial results. During the third quarter Mosaic delivered:
MOP cash production costs of $105 per tonne, including $20 per tonne of brine management expenses, despite a low operating rate during the current quarter.
Record International Distribution quarterly sales volumes of 2.0 million tonnes.
The lowest quarterly Selling, General and Administrative expenses in the last six years despite an expanded business footprint.
Mosaic received the first shipment of prilled sulfur in preparation for the planned completion of its new sulfur melter in Florida.
The Company completed its previously announced $500 million accelerated share repurchase program and repurchased an additional $75 million during the quarter.
Mosaic continued to maintain a strong balance sheet, ending the quarter with $1.3 billion of cash and cash equivalents on the balance sheet.
The Company entered into settlement agreements with federal and state environmental agencies that, when effective, will resolve claims relating to how Mosaic has managed certain onsite waste materials at its fertilizer plants in Florida and Louisiana. After the settlement agreements are effective, Mosaic will deposit approximately $630 million into trusts to provide financial assurance for estimated future asset retirement obligations.
Phosphates
Phosphates Results
3Q 2015 Actual
3Q 2015 Guidance
Average DAP Selling Price
$451
$435 to $455
Sales Volume
2.1 million tonnes
2.1 to 2.4 million tonnes
Phosphate Production
83% of operational capacity
Mid 80% of operational capacity
 
“Our Phosphates business continues to deliver year-to-date earnings growth for Mosaic,” Joc O’Rourke said. “During the third quarter and year-to-date the business segment has accounted for more than half of Mosaic’s operating earnings. Attractive margins, even in the wake of global challenges, reflect the constructive nature of the phosphates industry and Mosaic’s leadership position.”






Net sales in the Phosphates segment were $1.0 billion for the third quarter, down from $1.1 billion last year as a result of both lower sales volumes and lower realized prices. Gross margin was $199 million, or 19 percent of net sales, compared to $236 million, or 21 percent of net sales, for the same period a year ago. The year-over-year change in gross margin rate is primarily driven by lower margins on monoammonium phosphates (MAP) and higher conversion costs per tonne as a result of the Company’s decision to curtail production. Operating earnings were $157 million, down from $188 million in the same quarter last year.
The third quarter average DAP selling price, FOB plant, was $451 per tonne, compared to $463 per tonne a year ago. Total sales volumes in the Phosphates segment were 2.1 million tonnes in the third quarter, down from 2.2 million tonnes last year.
Mosaic’s North American finished phosphate production was 2.4 million tonnes, or 83 percent of operational capacity, compared to 85 percent a year ago.
Potash
Potash Results
3Q 2015 Actual
3Q 2015 Guidance
Average MOP Selling Price
$265
$260 to $280
Sales Volume
1.6 million tonnes
1.6 to 2.0 million tonnes
Potash Production
67% of operational capacity
Mid 60% of operational capacity
“We have taken actions to optimize and right-size our potash operations,” Joc O’Rourke said. “Our three large Canadian mines provide operating efficiencies and flexibility needed to vary production depending on market conditions. As a result, Mosaic’s Potash business is well positioned to generate attractive through-cycle returns.”
Net sales in the Potash segment totaled $492 million for the third quarter, down from $593 million last year, driven by lower sales volumes and lower average realized prices. Gross margin was $97 million, or 20 percent of net sales, compared to $154 million, or 26 percent of net sales a year ago. The year-over-year decrease in gross margin rate was primarily driven by lower average realized prices. Higher Canadian resource taxes and royalties were more than offset by lower costs as a result of the weaker Canadian dollar and expense management initiatives. Operating earnings were $66 million, down from $69 million in the same quarter last year.
The third quarter average MOP selling price, FOB plant, was $265 per tonne, down from $291 per tonne a year ago. The Potash segment total sales volumes for the third quarter were 1.6 million tonnes, compared to 1.8 million tonnes a year ago.
Potash production was 1.8 million tonnes, or 67 percent of operational capacity, roughly flat with last year.







International Distribution (ID)
ID Results
3Q 2015 Actual
3Q 2015 Guidance
Sales Volume
2.0 million tonnes
1.9 to 2.2 million tonnes
Gross Margin per Tonne
$30 per tonne
$20 to $26 per tonne
“Brazilian currency volatility and reduced availability of farm credit resulted in delayed fertilizer demand in the region,” Joc O’Rourke said. “We remain optimistic for Brazil’s long-term agricultural future, and for our investments in this important region. In total, our International Distribution business sold more tonnes at higher-than-expected margins than last year, capturing time-place utility in spite of difficult macro-economic conditions.”
Net sales in the International Distribution segment were $825 million for the third quarter, up from $684 million last year, primarily as a result of increased volumes from the ADM acquisition. Gross margin was $61 million, or seven percent of net sales, compared to $51 million, or seven percent of net sales for the same period a year ago. Operating earnings were $44 million, up from $30 million in the same quarter last year, reflecting a larger business footprint in Latin America.
The third quarter average selling price was $400 per tonne, compared to $481 per tonne a year ago. International Distribution segment total sales volumes were 2.0 million tonnes, up from 1.4 million tonnes last year.
Other
SG&A expenses were $77 million for the third quarter, down from $84 million a year ago, in part reflecting on-going progress against cost saving initiatives.
Provision for income taxes in the third quarter includes a $15 million benefit related to the reduction of the full year estimated effective tax rate to mid to high teens, excluding discrete items.
Financial Guidance
“Mosaic maintained and will continue to maintain discipline by matching production to expected demand, and our fourth quarter guidance clearly reflects this philosophy,” said Joc O’Rourke. “Longer term, stable and profitable farm economics combined with the benefits of our strategic initiatives position Mosaic to generate attractive returns for our shareholders.”
Total sales volumes for the Phosphates segment are expected to range from 1.9 to 2.2 million tonnes for the fourth quarter of 2015, compared to 2.4 million tonnes last year. Mosaic’s realized DAP price, FOB plant, is estimated to range from $410







to $440 per tonne for the fourth quarter. The segment gross margin rate is estimated to be in the high teens and the operating rate is expected to be around 80 percent.
Total sales volumes for the Potash segment are expected to range from 1.8 to 2.1 million tonnes for the fourth quarter of 2015, compared to 2.3 million tonnes last year. Mosaic’s realized MOP price, FOB plant, is estimated to range from $235 to $255 per tonne. Mosaic’s gross margin rate in the segment is expected to be in the mid 20 percent range during the fourth quarter, reflecting the decision to operate at lower production rates due to softer demand conditions. The Company’s operating rate is expected to be around 70 percent, down from 91 percent last year.
Total sales volumes for the International Distribution segment are expected to range from 1.3 to 1.6 million tonnes for the fourth quarter of 2015, compared to 1.1 million tonnes last year. The segment gross margin per tonne is estimated to be in the range of $23 to $28 per tonne.
For the 2015 full year guidance, Mosaic updates the following estimates:
Canadian resource taxes and royalties to be in the range of $265 to $295 million, compared to prior guidance of $310 to $350 million.
Capital expenditures and investments to be approximately $1.1 to $1.2 billion, compared to prior guidance of $1.1 to $1.3 billion.
Brine management costs to be in the range of $170 to $180 million, compared to prior guidance of $180 to $200 million.
SG&A expenses in the $350 to $370 million range, compared to prior guidance of $360 to $380 million.
The effective tax rate to be in the mid to high teens, excluding discrete items, compared to the prior estimate of high teens.

About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the Company is available at www.mosaicco.com.
Mosaic will conduct a conference call on Tuesday, November 3, 2015, at 9:00 a.m. EST to discuss third quarter earnings results as well as global markets and trends. Presentation slides and a simultaneous webcast of the conference call may be










accessed through Mosaic’s website at www.mosaicco.com/investors. This webcast will be available up to one year from the time of the earnings call.
This document contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about the Wa’ad Al Shamal Phosphate Company (also known as the Ma’aden joint venture), the acquisition and assumption of certain related liabilities of the Florida phosphate assets of CF Industries, Inc. (“CF”) and Mosaic’s ammonia supply agreements with CF; repurchases of stock; other proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to risks and uncertainties arising from the ability of the Ma’aden joint venture to obtain additional planned funding in acceptable amounts and upon acceptable terms, the timely development and commencement of operations of production facilities in the Kingdom of Saudi Arabia, the future success of current plans for the Ma’aden joint venture and any future changes in those plans; difficulties with realization of the benefits of the long term ammonia supply agreements with CF, including the risk that the cost savings from the agreements may not be fully realized or that the price of natural gas or ammonia changes to a level at which the natural gas based pricing under one of these agreements becomes disadvantageous to Mosaic; customer defaults; the effects of Mosaic’s decisions to exit business operations or locations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for Mosaic’s products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic’s international operations and those of joint ventures in which Mosaic participates, including the risk that protests against natural resource companies in Peru extend to or impact the Miski Mayo mine; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic’s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States or Canada, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management’s current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the Ma’aden joint venture, its existing or future funding and Mosaic’s commitments in support of such funding; reduction of Mosaic’s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund share repurchases, financial assurance requirements and strategic investments; brine inflows at Mosaic’s Esterhazy, Saskatchewan, potash mine or other potash shaft mines; other accidents and disruptions involving Mosaic’s operations, including potential mine fires, floods, explosions, seismic events or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss, as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

###






For the three months ended September 30, 2015, the Company reported the following notable items which, combined, negatively impacted earnings per share by $0.17: 
 
 
 
 
 
 
Amount
 
Tax effect
 
EPS impact
Description
 
Segment
 
Line item
 
(in millions)
 
(in millions)
 
(per share)
Foreign currency transaction (loss) gain
 
Consolidated
 
Foreign currency transaction (loss) gain
 
$
(49
)
 
$
8

 
$
(0.12
)
Unrealized gain (loss) on derivatives
 
Corporate & Other
 
Cost of goods sold
 
(22
)
 
4

 
(0.05
)
Discrete tax items
 
Consolidated
 
Provision for income taxes
 

 
3

 
0.01

Write-off of fixed assets
 
Phosphates
 
Other operating expense
 
(10
)
 
2

 
(0.02
)
Consumption tax refund
 
Potash
 
Cost of goods sold
 
6

 
(1
)
 
0.01

Total Notable Items
 
 
 
 
 
$
(75
)
 
$
16

 
$
(0.17
)

For the three months ended September 30, 2014, the Company reported the following notable items which, combined, negatively impacted earnings per share by $0.02: 
 
 
 
 
 
 
Amount
 
Tax effect
 
EPS impact
Description
 
Segment
 
Line item
 
(in millions)
 
(in millions)
 
(per share)
Share repurchase
 
Consolidated
 
Gain (loss) in value of share repurchase agreement
 
$
5

 
$

 
$
0.01

Severance
 
Corporate & Other
 
Other operating expense
 
(3
)
 
1

 
(0.01
)
Foreign currency transaction (loss) gain
 
Consolidated
 
Foreign currency transaction (loss) gain
 
27

 
(8
)
 
0.06

Unrealized gain (loss) on derivatives
 
Corporate & Other
 
Cost of goods sold
 
(23
)
 
6

 
(0.04
)
Adjustments to Argentine assets held for sale
 
International Distribution
 
Other operating expense
 
18

 
(5
)
 
0.03

Gain on sale of Hersey
 
Potash
 
Other operating expense
 
14

 
(4
)
 
0.03

Carlsbad restructuring expense
 
Potash
 
Restructuring expense
 
(67
)
 
28

 
(0.10
)
Total Notable Items
 
 
 
 
 
$
(29
)
 
$
18

 
$
(0.02
)
 





Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
 
 
 
 
The Mosaic Company
  
(unaudited)
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Net sales
 
$
2,105.5

 
$
2,250.7

 
$
6,732.1

 
$
6,677.2

Cost of goods sold
 
1,770.2

 
1,836.0

 
5,369.7

 
5,329.7

Gross margin
 
335.3

 
414.7

 
1,362.4

 
1,347.5

Selling, general and administrative expenses
 
76.6

 
83.9

 
266.3

 
291.3

Gain on assets sold and to be sold
 

 
(31.7
)
 

 
(26.1
)
Carlsbad restructuring expense
 

 
67.0

 

 
67.0

Other operating expense
 
12.7

 
18.2

 
21.6

 
68.1

Operating earnings
 
246.0

 
277.3

 
1,074.5

 
947.2

Gain (loss) in value of share repurchase agreement
 

 
5.3

 

 
(60.2
)
Interest expense, net
 
(24.2
)
 
(25.2
)
 
(79.0
)
 
(76.6
)
Foreign currency transaction (loss) gain
 
(48.6
)
 
27.1

 
(19.4
)
 
31.8

Other (expense) income
 
(1.1
)
 
0.1

 
(14.5
)
 
(6.1
)
Earnings from consolidated companies before income taxes
 
172.1

 
284.6

 
961.6

 
836.1

Provision for income taxes
 
10.1

 
77.6

 
113.4

 
157.7

Earnings from consolidated companies
 
162.0

 
207.0

 
848.2

 
678.4

Equity in net earnings of nonconsolidated companies
 
(1.3
)
 
(4.1
)
 
(1.9
)
 
(9.6
)
Net earnings including noncontrolling interests
 
160.7

 
202.9

 
846.3

 
668.8

Less: Net earnings attributable to noncontrolling interests
 
0.7

 
1.0

 
0.9

 
0.9

Net earnings attributable to Mosaic
 
$
160.0

 
$
201.9

 
$
845.4

 
$
667.9

Diluted net earnings per share attributable to Mosaic
 
$
0.45

 
$
0.54

 
$
2.33

 
$
1.72

Diluted weighted average number of shares outstanding
 
356.0

 
375.9

 
362.3

 
377.0

 
 





Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
The Mosaic Company
  
(unaudited)
 
 
September 30, 2015
 
December 31, 2014
Assets
 
 
 
 
Current assets:
 
 
 
 
Cash and cash equivalents
 
$
1,284.9

 
$
2,374.6

Receivables, net
 
675.1

 
754.4

Inventories
 
1,549.5

 
1,718.3

Deferred income taxes
 
175.0

 
148.7

Other current assets
 
578.5

 
368.2

Total current assets
 
4,263.0

 
5,364.2

Property, plant and equipment, net
 
8,734.0

 
9,313.9

Investments in nonconsolidated companies
 
876.1

 
849.8

Goodwill
 
1,625.0

 
1,806.5

Deferred income taxes
 
423.6

 
394.4

Other assets (including cash set aside to fund RCRA)
 
1,196.2

 
554.2

Total assets
 
$
17,117.9

 
$
18,283.0

Liabilities and Equity
 
 
 
 
Current liabilities:
 
 
 
 
Short-term debt
 
$
18.0

 
$
13.5

Current maturities of long-term debt
 
42.2

 
41.0

Structured accounts payable arrangements
 
257.9

 
237.7

Accounts payable
 
657.0

 
559.6

Accrued liabilities
 
896.3

 
726.1

Deferred income taxes
 

 
3.7

Accrued income taxes
 
0.1

 
18.8

Total current liabilities
 
1,871.5

 
1,600.4

Long-term debt, less current maturities
 
3,738.1

 
3,778.0

Deferred income taxes
 
895.3

 
984.0

Other noncurrent liabilities
 
986.0

 
1,200.0

Equity:
 
 
 
 
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of September 30, 2015 and December 31, 2014
 

 

Class A Common Stock, $0.01 par value, 194,203,987 shares authorized, 17,176,046 shares issued and outstanding as of September 30, 2015 and December 31, 2014
 
0.2

 
0.2

Class B Common Stock, $0.01 par value, 87,008,602 shares authorized, none issued and outstanding as of September 30, 2015 and December 31, 2014
 

 

Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 370,498,658 shares issued and 335,316,367 shares outstanding as of September 30, 2015, 369,987,783 shares issued and 350,364,236 shares outstanding as of December 31, 2014
 
3.4

 
3.5

Capital in excess of par value
 
0.9

 
4.2

Retained earnings
 
11,058.5

 
11,168.9

Accumulated other comprehensive income (loss)
 
(1,448.7
)
 
(473.7
)
Total Mosaic stockholders' equity
 
9,614.3

 
10,703.1

Noncontrolling interests
 
12.7

 
17.5

Total equity
 
9,627.0

 
10,720.6

Total liabilities and equity
 
$
17,117.9

 
$
18,283.0





 Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
 
 
 
The Mosaic Company
  
(unaudited)
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Cash Flows from Operating Activities:
 
 
 
 
Net cash provided by operating activities
 
184.0

 
375.2

 
$
1,520.7

 
$
1,779.8

Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
Capital expenditures
 
(245.3
)
 
(188.4
)
 
(702.2
)
 
(677.3
)
Proceeds from sale of business
 

 
55.0

 

 
55.0

Restricted cash
 
(630.0
)
 

 
(630.0
)
 

Acquisition of business
 

 
(22.2
)
 

 
(1,375.8
)
Proceeds from adjustment to acquisition of business
 

 

 
47.9

 

Investments in nonconsolidated companies
 

 
(2.4
)
 
(125.0
)
 
(152.0
)
Return of investment
 
54.4

 

 
54.4

 

Other
 
(1.7
)
 
(0.1
)
 
6.0

 
(2.6
)
Net cash used in investing activities
 
(822.6
)
 
(158.1
)
 
(1,348.9
)
 
(2,152.7
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
Payments of short-term debt
 
(152.2
)
 
(95.5
)
 
(297.0
)
 
(219.4
)
Proceeds from issuance of short-term debt
 
144.0

 
83.2

 
302.5

 
186.0

Payments of structured accounts payable arrangements
 
(69.3
)
 
(48.0
)
 
(311.4
)
 
(120.9
)
Proceeds from structured accounts payable arrangements
 
185.8

 
161.4

 
329.8

 
253.0

Payments of long-term debt
 
(56.0
)
 
(0.5
)
 
(58.4
)
 
(1.5
)
Proceeds from issuance of long-term debt
 
2.1

 
803.1

 
5.9

 
807.2

Proceeds from stock option exercises
 
1.1

 
1.0

 
5.3

 
2.3

Repurchases of stock
 
(74.9
)
 
(375.0
)
 
(709.4
)
 
(2,507.7
)
Cash dividends paid
 
(98.3
)
 
(93.8
)
 
(287.8
)
 
(288.6
)
Other
 
(8.8
)
 
0.8

 
(8.3
)
 
0.2

Net cash used in financing activities
 
(126.5
)
 
436.7

 
(1,028.8
)
 
(1,889.4
)
Effect of exchange rate changes on cash
 
(159.9
)
 
(50.2
)
 
(232.7
)
 
(60.2
)
Net change in cash and cash equivalents
 
(925.0
)
 
603.6

 
(1,089.7
)
 
(2,322.5
)
Cash and cash equivalents - beginning of period
 
2,209.9

 
2,367.0

 
2,374.6

 
5,293.1

Cash and cash equivalents - end of period
 
$
1,284.9

 
$
2,970.6

 
$
1,284.9

 
$
2,970.6






Use of Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles ("GAAP"), the Company has presented gross margin excluding Canadian resource taxes and royalties ("CRT") for Potash and adjusted diluted earnings per share, each of which is a non-GAAP financial measure. 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. Neither gross margin excluding CRT nor adjusted diluted earnings per share is a measure of financial performance under GAAP. Because not all companies use identical calculations, investors should consider that Mosaic’s calculations may not be comparable to other similarly titled measures presented by other companies. Gross margin excluding CRT and adjusted diluted earnings per share should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP.
Gross margin excluding CRT provides a measure that the Company believes enhances the reader’s ability to compare the Company’s gross margin with that of other companies which incur CRT expense and classify it in a manner different than the Company in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, the Company’s management believes that Mosaic’s presentation of gross margin excluding CRT for Potash affords them greater transparency in assessing Mosaic’s financial performance against competitors.
Management believes that adjusted diluted 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 earnings per share in analyzing and assessing the Company's overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted earnings per share also assists our management in comparing our and our competitors' operating results.



Potash Gross Margin, Excluding Resource Taxes and Royalties, Calculation
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Sales
 
$
491.5

 
$
593.0

 
$
1,874.5

 
$
2,088.5

Gross margin
 
96.9

 
154.1

 
633.7

 
596.4

Canadian resource taxes
 
59.1

 
45.6

 
192.1

 
120.7

Canadian royalties
 
6.7

 
5.5

 
27.0

 
18.6

Gross margin, excluding Canadian resource taxes and royalties (CRT)
 
$
162.7

 
$
205.2

 
$
852.8

 
$
735.7

Gross margin percentage, excluding CRT
 
33.1
%
 
34.6
%
 
45.5
%
 
35.2
%





Reconciliation of Adjusted Diluted Earnings Per Share

 
Three months ended September 30,
 
2015
 
2014
 
 
 
 
Diluted earnings per share, as reported
$0.45

 
$0.54

 
 
 
 
Items included in earnings per share:
 
 
 
Foreign currency transaction (gain) loss
0.12

 
(0.06
)
Unrealized (gain) loss on derivatives
0.05

 
0.04

Discrete tax items
(0.01
)
 

Write-off of fixed assets
0.02

 

Consumption tax refund
(0.01
)
 

Share repurchase

 
(0.01
)
Severance

 
0.01

Adjustments to Argentine assets held for sale

 
(0.03
)
Gain on sale of Hersey

 
(0.03
)
Carlsbad restructuring expense

 
0.10

 
 
 
 
Adjusted diluted earnings per share
$0.62

 
$0.56






Earnings Per Share Calculation
 
 
 
Three months ended September 30,
 
Nine months ended September 30,
 
 
2015
 
2014
 
2015
 
2014
Net earnings attributed to Mosaic
 
$
160.0

 
$
201.9

 
$
845.4

 
$
667.9

Undistributed earnings attributable to participating securities
 

 
(0.5
)
 

 
(19.2
)
Numerator for basic and diluted earnings available to common stockholders
 
$
160.0

 
$
201.4

 
$
845.4

 
$
648.7

Basic weighted average number of shares outstanding
 
354.3

 
375.0

 
360.5

 
386.6

Shares subject to forward contract
 

 
(1.0
)
 

 
(11.1
)
Basic weighted average number of shares outstanding attributable to common stockholders
 
354.3

 
374.0

 
360.5

 
375.5

Dilutive impact of share-based awards
 
1.7

 
1.9

 
1.8

 
1.5

Diluted weighted average number of shares outstanding
 
356.0

 
375.9

 
362.3

 
377.0

Basic net earnings per share
 
$
0.45

 
$
0.54

 
$
2.35

 
$
1.73

Diluted net earnings per share
 
$
0.45

 
$
0.54

 
$
2.33

 
$
1.72

 






The Mosaic Company Exhibit 99.2
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings per share
 
$
0.30

 
$
0.54

 
$
0.64

 
$
0.54

 
$
0.97

 
$
0.80

 
$
1.08

 
$
0.45

Diluted weighted average # of shares outstanding(a)
 
415.5

 
379.6

 
376.2

 
375.9

 
372.0

 
367.9

 
363.3

 
356.0

Total Net Sales
 
$
2,182

 
$
1,986

 
$
2,440

 
$
2,251

 
$
2,379

 
$
2,139

 
$
2,488

 
$
2,106

Gross Margin
 
$
322

 
$
412

 
$
521

 
$
415

 
$
579

 
$
419

 
$
608

 
$
335

As % of Sales
 
15
%
 
21
 %
 
21
%
 
18
%
 
24
%
 
20
%
 
24
%
 
16
%
SG&A
 
91

 
120

 
88

 
84

 
91

 
100

 
89

 
77

Consolidated Foreign Currency Gain/(Loss)
 
25

 
43

 
(39
)
 
27

 
47

 
45

 
(16
)
 
(49
)
Effective Tax Rate(b)
 
51
%
 
(1
)%
 
25
%
 
27
%
 
7
%
 
9
%
 
16
%
 
6
%
Net Income
 
$
129

 
$
218

 
$
248

 
$
202

 
$
361

 
$
295

 
$
391

 
$
160

As % of Sales
 
6
%
 
11
 %
 
10
%
 
9
%
 
15
%
 
14
%
 
16
%
 
8
%
EBITDA(c)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potash
 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

 
$
283

 
$
341

 
$
141

Phosphate
 
143

 
221

 
309

 
275

 
261

 
282

 
358

 
252

International Distribution
 
12

 
10

 
18

 
32

 
24

 
6

 
13

 
47

Corporate and Other(d)
 
23

 
(50
)
 
(13
)
 
(2
)
 
(36
)
 
(71
)
 
(10
)
 
(14
)
Consolidated EBITDA(c)
 
$
351

 
$
438

 
$
595

 
$
463

 
$
565

 
$
500

 
$
702

 
$
426

Short-term debt
 
$
23

 
$
41

 
$
13

 
$

 
$
14

 
$
10

 
$
27

 
$
18

Current maturities of long-term debt
 

 
1

 
1

 
41

 
41

 
41

 
57

 
42

Long-term debt, less current maturities
 
3,009

 
3,009

 
3,013

 
3,774

 
3,778

 
3,775

 
3,762

 
3,738

Cash & cash equivalents
 
5,293

 
2,491

 
2,367

 
2,971

 
2,375

 
2,517

 
2,210

 
1,285

Net
 
$
(2,261
)
 
$
560

 
$
660

 
$
844

 
$
1,458

 
$
1,309

 
$
1,636

 
$
2,513

Cash flow from operations
 
$
485

 
$
610

 
$
795

 
$
375

 
$
342

 
$
730

 
$
607

 
$
184

Cash flow from investments
 
(370
)
 
(1,634
)
 
(360
)
 
(158
)
 
(586
)
 
(183
)
 
(343
)
 
(823
)
Cash flow from financing
 
1,860

 
(1,753
)
 
(574
)
 
437

 
(279
)
 
(301
)
 
(601
)
 
(126
)
Effect of exchange rate changes on cash
 
(20
)
 
(25
)
 
15

 
(50
)
 
(73
)
 
(103
)
 
30

 
(160
)
Net cash flow
 
$
1,955

 
$
(2,802
)
 
$
(124
)
 
$
604

 
$
(596
)
 
$
143

 
$
(307
)
 
$
(925
)
Cash dividends paid
 
$
(107
)
 
$
(100
)
 
$
(95
)
 
$
(94
)
 
$
(94
)
 
$
(91
)
 
$
(98
)
 
$
(98
)
Operating Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potash
 
$
89

 
$
170

 
$
189

 
$
69

 
$
229

 
$
204

 
$
259

 
$
66

Phosphates
 
64

 
146

 
219

 
188

 
157

 
190

 
259

 
157

International Distribution
 
10

 
8

 
16

 
30

 
22

 
3

 
8

 
44

Corporate and Other(d)
 
16

 
(57
)
 
(21
)
 
(10
)
 
(43
)
 
(78
)
 
(16
)
 
(21
)
Consolidated Operating Earnings
 
$
179

 
$
267

 
$
403

 
$
277

 
$
365

 
$
319

 
$
510

 
$
246

Segment data  (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phosphates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(e)(f)
 
2,395

 
2,051

 
2,637

 
2,176

 
2,392

 
2,297

 
2,788

 
2,049

Realized average DAP price/tonne(g)
 
$
370

 
$
413

 
$
465

 
$
463

 
$
447

 
$
458

 
$
450

 
$
451

Revenue
 
$
1,072

 
$
959

 
$
1,333

 
$
1,133

 
$
1,212

 
$
1,172

 
$
1,385

 
$
1,032

Segment Gross Margin
 
$
134

 
$
200

 
$
271

 
$
236

 
$
231

 
$
222

 
$
296

 
$
199

As % of Sales
 
13
%
 
21
 %
 
20
%
 
21
%
 
19
%
 
19
%
 
21
%
 
19
%
Potash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(f)
 
1,862

 
2,355

 
2,500

 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

Realized average MOP price/tonne(g)
 
$
303

 
$
267

 
$
267

 
$
291

 
$
295

 
$
288

 
$
280

 
$
265

Revenue
 
$
652

 
$
733

 
$
762

 
$
593

 
$
763

 
$
653

 
$
730

 
$
492

Segment Gross Margin
 
$
135

 
$
216

 
$
226

 
$
154

 
$
327

 
$
242

 
$
295

 
$
97

As % of Sales
 
21
%
 
29
 %
 
30
%
 
26
%
 
43
%
 
37
%
 
40
%
 
20
%
International Distribution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
1,133

 
870

 
1,185

 
1,398

 
1,113

 
976

 
1,477

 
2,046

Realized average Blend price/tonne(g)
 
$
466

 
$
438

 
$
452

 
$
481

 
$
427

 
$
444

 
$
427

 
$
400

Revenue
 
$
549

 
$
393

 
$
542

 
$
684

 
$
516

 
$
439

 
$
637

 
$
825

Segment Gross Margin
 
$
29

 
$
22

 
$
34

 
$
51

 
$
41

 
$
21

 
$
29

 
$
61

As % of Sales
 
5
%
 
6
 %
 
6
%
 
7
%
 
8
%
 
5
%
 
4
%
 
7
%






The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
470

 
$
506

 
$
435

 
$
371

 
$
467

 
$
345

 
$
372

 
$
250

International
 
182

 
227

 
327

 
222

 
296

 
308

 
358

 
242

Net Sales
 
$
652

 
$
733

 
$
762

 
$
593

 
$
763

 
$
653

 
$
730

 
$
492

Cost of Goods Sold
 
517

 
517

 
536

 
439

 
436

 
411

 
435

 
395

Gross Margin
 
$
135

 
$
216

 
$
226

 
$
154

 
$
327

 
$
242

 
$
295

 
$
97

As % of Sales
 
21
%
 
29
%
 
30
%
 
26
%
 
43
%
 
37
%
 
40
%
 
20
%
Freight included in revenue & cost of goods sold (in millions)(h)
 
$
61

 
$
73

 
$
57

 
$
51

 
$
69

 
$
47

 
$
47

 
$
34

Net sales less freight
 
$
591

 
$
660

 
$
705

 
$
542

 
$
694

 
$
606

 
$
683

 
$
458

Cost of Goods Sold less freight
 
$
456

 
$
444

 
$
479

 
$
388

 
$
367

 
$
364

 
$
388

 
$
361

Resources Taxes
 
$
57

 
$
30

 
$
45

 
$
46

 
$
48

 
$
78

 
$
55

 
$
59

Royalties
 
9

 
6

 
7

 
6

 
8

 
11

 
9

 
7

Total Resources Taxes & Royalties
 
$
66

 
$
36

 
$
52

 
$
52

 
$
56

 
$
89

 
$
64

 
$
66

Gross Margin (excluding Resources Taxes & Royalties)(i)
 
$
201

 
$
252

 
$
278

 
$
206

 
$
383

 
$
331

 
$
359

 
$
163

As % of Sales
 
31
%
 
34
%
 
36
%
 
35
%
 
50
%
 
51
%
 
49
%
 
33
%
Segment Operating Earnings
 
$
89

 
$
170

 
$
189

 
$
69

 
$
229

 
$
204

 
$
259

 
$
66

Depreciation, Depletion and Amortization
 
84

 
87

 
92

 
89

 
87

 
79

 
82

 
75

EBITDA(c)
 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

 
$
283

 
$
341

 
$
141

Cost of Goods Sold Detail (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COGS additional detail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Resource Taxes
 
$
57

 
$
30

 
$
45

 
$
46

 
$
48

 
$
78

 
$
55

 
$
59

Royalties
 
9

 
6

 
7

 
6

 
8

 
11

 
9

 
7

Brine Inflow Expenses
 
50

 
44

 
46

 
44

 
47

 
44

 
45

 
37

Depreciation, Depletion and Amortization
 
84

 
87

 
92

 
89

 
87

 
79

 
82

 
75

Total
 
$
200

 
$
167

 
$
190

 
$
185

 
$
190

 
$
212

 
$
191

 
$
178

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crop Nutrients North America(f)
 
933

 
1,111

 
873

 
691

 
964

 
572

 
641

 
419

Crop Nutrients International(f)
 
744

 
1,065

 
1,427

 
919

 
1,228

 
1,248

 
1,544

 
1,041

Non-Agricultural
 
185

 
179

 
200

 
198

 
117

 
207

 
157

 
166

Total(f)
 
1,862

 
2,355

 
2,500

 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production Volume
 
1,741

 
1,871

 
2,044

 
1,666

 
2,584

 
2,451

 
2,362

 
1,749

Operating Rate(j)
 
65
%
 
70
%
 
76
%
 
62
%
 
91
%
 
93
%
 
90
%
 
67
%
Realized prices (FOB plant, $/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MOP - North America crop nutrients(g)(k)
 
$
332

 
$
300

 
$
308

 
$
344

 
$
355

 
$
362

 
$
345

 
$
293

MOP - International(g)
 
$
225

 
$
209

 
$
225

 
$
232

 
$
239

 
$
245

 
$
244

 
$
236

MOP - Average(g)
 
$
303

 
$
267

 
$
267

 
$
291

 
$
295

 
$
288

 
$
280

 
$
265

Brine inflow cost/production tonne
 
$
29

 
$
24

 
$
23

 
$
26

 
$
18

 
$
18

 
$
19

 
$
21

Cash COGS/sales tonne
 
$
164

 
$
136

 
$
134

 
$
137

 
$
97

 
$
97

 
$
103

 
$
135

EBITDA(c)/sales tonne(l)
 
$
93

 
$
109

 
$
112

 
$
87

 
$
137

 
$
140

 
$
146

 
$
87

Potash CAPEX  (in millions)
 
$
197

 
$
144

 
$
94

 
$
92

 
$
141

 
$
95

 
$
88

 
$
119







The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
721

 
$
559

 
$
725

 
$
636

 
$
714

 
$
668

 
$
705

 
$
570

International
 
351

 
400

 
608

 
497

 
498

 
504

 
680

 
462

Net Sales
 
$
1,072

 
$
959

 
$
1,333

 
$
1,133

 
$
1,212

 
$
1,172

 
$
1,385

 
$
1,032

Cost of Goods Sold
 
938

 
759

 
1,062

 
897

 
981

 
950

 
1,089

 
833

Gross Margin
 
$
134

 
$
200

 
$
271

 
$
236

 
$
231

 
$
222

 
$
296

 
$
199

As % of Sales
 
13
%
 
21
%
 
20
%
 
21
%
 
19
%
 
19
%
 
21
%
 
19
%
Freight included in revenue & cost of goods sold (in millions)
 
$
112

 
$
81

 
$
100

 
$
88

 
$
103

 
$
82

 
$
98

 
$
79

Net sales less freight
 
$
960

 
$
878

 
$
1,233

 
$
1,045

 
$
1,109

 
$
1,090

 
$
1,287

 
$
953

Cost of Goods Sold less freight
 
$
826

 
$
678

 
$
962

 
$
809

 
$
878

 
$
868

 
$
991

 
$
754

PhosChem sales of other member
 
$
23

 
$

 
$

 
$

 
$

 
$

 
$

 
$

Segment Operating Earnings
 
$
64

 
$
146

 
$
219

 
$
188

 
$
157

 
$
190

 
$
259

 
$
157

Depreciation, Depletion and Amortization
 
75

 
79

 
93

 
91

 
97

 
94

 
99

 
96

Equity Earnings (Loss)
 
4

 
(4
)
 
(3
)
 
(4
)
 
7

 
(2
)
 

 
(1
)
EBITDA(c)
 
$
143

 
$
221

 
$
309

 
$
275

 
$
261

 
$
282

 
$
358

 
$
252

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America - DAP/MAP
 
1,116

 
747

 
948

 
805

 
837

 
951

 
895

 
709

International - DAP/MAP(f)
 
577

 
650

 
1,040

 
878

 
882

 
754

 
1,224

 
819

MicroEssentials®(f)
 
541

 
510

 
481

 
357

 
502

 
440

 
516

 
389

Feed and Other
 
161

 
144

 
168

 
136

 
171

 
152

 
153

 
132

Total(e)
 
2,395

 
2,051

 
2,637

 
2,176

 
2,392

 
2,297

 
2,788

 
2,049

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total tonnes produced(m)
 
1,960

 
1,971

 
2,458

 
2,480

 
2,364

 
2,299

 
2,504

 
2,434

Operating Rate
 
81
%
 
79
%
 
84
%
 
85
%
 
81
%
 
79
%
 
86
%
 
83
%
Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP (FOB plant)(g)
 
$
370

 
$
413

 
$
465

 
$
463

 
$
447

 
$
458

 
$
450

 
$
451

Realized costs  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(n)
 
$
422

 
$
374

 
$
473

 
$
508

 
$
544

 
$
519

 
$
417

 
$
418

Sulfur (long ton)(o)
 
$
123

 
$
96

 
$
128

 
$
148

 
$
154

 
$
145

 
$
161

 
$
151

Blended rock
 
$
62

 
$
64

 
$
68

 
$
60

 
$
58

 
$
61

 
$
61

 
$
61

Average Market prices  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(p)
 
$
467

 
$
455

 
$
557

 
$
547

 
$
625

 
$
497

 
$
462

 
$
454

Sulfur (long ton)(q)
 
$
77

 
$
104

 
$
131

 
$
135

 
$
131

 
$
141

 
$
135

 
$
136

Natural Gas(r)
 
$
3.9

 
$
4.7

 
$
4.6

 
$
4.0

 
$
3.9

 
$
2.8

 
$
2.7

 
$
2.7

Full production conversion cost/production tonne
 
$
81

 
$
89

 
$
87

 
$
82

 
$
90

 
$
91

 
$
83

 
$
89

EBITDA(c)/sales tonne(l)
 
$
60

 
$
108

 
$
117

 
$
126

 
$
100

 
$
123

 
$
128

 
$
123

Phosphates CAPEX (in millions)
 
$
135

 
$
116

 
$
104

 
$
85

 
$
98

 
$
129

 
$
128

 
$
118







The Mosaic Company - International Distribution Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
549

 
$
393

 
$
542

 
$
684

 
$
516

 
$
439

 
$
637

 
$
825

Cost of Goods Sold
 
520

 
371

 
508

 
633

 
475

 
418

 
608

 
764

Gross Margin
 
$
29

 
$
22

 
$
34

 
$
51

 
$
41

 
$
21

 
$
29

 
$
61

As % of Sales
 
5
%
 
6
%
 
6
%
 
7
%
 
8
%
 
5
%
 
4
%
 
7
%
Per tonne
 
$
26

 
$
25

 
$
29

 
$
36

 
$
37

 
$
21

 
$
19

 
$
30

SG&A and Other Operating Expenses
 
$
19

 
$
14

 
$
18

 
$
21

 
$
19

 
$
18

 
$
21

 
$
17

Segment Operating Earnings
 
$
10

 
$
8

 
$
16

 
$
30

 
$
22

 
$
3

 
$
8

 
$
44

Depreciation, Depletion and Amortization
 
2

 
2

 
2

 
2

 
2

 
3

 
5

 
3

EBITDA(c)
 
$
12

 
$
10

 
$
18

 
$
32

 
$
24

 
$
6

 
$
13

 
$
47

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
1,133

 
870

 
1,185

 
1,398

 
1,113

 
976

 
1,477

 
2,046

Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average selling price (FOB destination)
 
$
466

 
$
438

 
$
452

 
$
481

 
$
456

 
$
444

 
$
427

 
$
400

Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
 
212

 
93

 
290

 
331

 
214

 
138

 
363

 
349

MicroEssentials® from Mosaic
 
131

 
147

 
168

 
83

 
56

 
125

 
198

 
155

Potash from Mosaic/Canpotex
 
340

 
269

 
484

 
261

 
334

 
249

 
769

 
556

International Distribution CAPEX (in millions)
 
$
8

 
$
8

 
$
11

 
$
7

 
$
9

 
$
4

 
$
6

 
$
4

Working Capital (in millions)(s)
 
$
153

 
$
168

 
$
188

 
$
184

 
$
186

 
$
145

 
$
149

 
$
105

EBITDA(c)/sales tonne(l)
 
$
11

 
$
11

 
$
15

 
$
23

 
$
22

 
$
6

 
$
9

 
$
23







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

 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
(91
)
 
$
(99
)
 
$
(197
)
 
$
(159
)
 
$
(112
)
 
$
(125
)
 
$
(265
)
 
$
(243
)
Cost of Goods Sold
 
(115
)
 
(73
)
 
(187
)
 
(133
)
 
(92
)
 
(60
)
 
(253
)
 
(222
)
Gross Margin (loss)
 
$
24

 
$
(26
)
 
$
(10
)
 
$
(26
)
 
$
(20
)
 
$
(65
)
 
$
(12
)
 
$
(21
)
Elimination of profit in inventory (income) loss included in COGS
 
$
(30
)
 
$
9

 
$
29

 
$
(3
)
 
$
(18
)
 
$
18

 
$
34

 
$
(12
)
Unrealized (gain) loss on derivatives included in COGS
 
$
3

 
$
4

 
$
(26
)
 
$
23

 
$
31

 
$
38

 
$
(27
)
 
$
(22
)
Segment Operating Earnings
 
$
16

 
$
(57
)
 
$
(21
)
 
$
(10
)
 
$
(43
)
 
$
(78
)
 
$
(16
)
 
$
(21
)
Depreciation, Depletion and Amortization
 
6

 
6

 
7

 
8

 
7

 
6

 
5

 
7

Equity Earnings (Loss)
 
1

 
1

 
1

 

 

 
1

 
1

 

EBITDA(c)
 
$
23

 
$
(50
)
 
$
(13
)
 
$
(2
)
 
$
(36
)
 
$
(71
)
 
$
(10
)
 
$
(14
)






Footnotes
 
(a)
For Q4 2013 through Q4 2014, diluted weighted average number of shares reflects the impact of shares subject to the forward contract for our contractual share repurchase obligations.
(b)
Includes a discrete income tax benefit of approximately $63 million in Q1 2014, $14 million in Q2 2014, $29 million in Q3 2014, $100 million in Q4 2014, $28 million in Q1 2015, $10 million in Q2 2015, $3 million in Q3 2015 and a discrete income tax expense of approximately $104 million in Q4 2013.
(c)
The Company defines EBITDA as operating earnings plus depreciation, depletion and amortization plus equity earnings in nonconsolidated companies. EBITDA is a non-GAAP financial measure. 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 U.S. generally accepted accounting principles ("GAAP"). A reconciliation of EBITDA to the nearest comparable GAAP measure and an explanation of why we include EBITDA appear below under "Non-GAAP Reconciliation".
(d)
Includes elimination of intersegment sales.
(e)
Excludes tonnes sold by PhosChem for its other member. Effective December 31, 2013, we and PhosChem's other member each assumed responsibility for PhosChem's former activities as they related to our respective products. We subsequently dissolved PhosChem.
(f)
Sales volumes include intersegment sales.
(g)
FOB Plant, sales to unrelated parties.
(h)
Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales.
(i)
The Company has presented gross margin excluding Canadian resource taxes and royalties (“CRT”) for Potash which is a non-GAAP financial measure. 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. Gross margin excluding CRT provides a measure that we believe enhances the reader’s ability to compare our gross margin with that of other companies which incur CRT expense and classify it in a manner different than the Company in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, the Company’s management believes that the Company's presentation of gross margin excluding CRT for Potash affords them greater transparency in assessing the Company’s financial performance against competitors. Because not all companies use identical calculations, investors should consider that the Company's calculation may not be comparable to other similarly titled measures presented by other companies. Gross margin excluding CRT, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(j)
Q4 2014 operating rate includes an additional 600 thousand metric tonnes of annual capacity from our Colonsay expansion.
(k)
This price excludes industrial and feed sales.
(l)
Calculated as EBITDA divided by sales tonnes.
(m)
Includes crop nutrient dry concentrates and animal feed ingredients.
(n)
Amounts are representative of our average ammonia costs in cost of goods sold.
(o)
Amounts are representative of our average sulfur cost in cost of goods sold.
(p)
Three point quarterly average (Fertecon).
(q)
Three point quarterly average (Green Markets).
(r)
Three point quarterly average (NYMEX).
(s)
Calculated as current assets less cash and liabilities for the International Distribution segment.






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Non-GAAP Reconciliation
EBITDA is provided 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.  EBITDA should not be considered as an alternative to, or more meaningful than, net income as a measure of operating performance.  Since EBITDA is not a measure determined in accordance with GAAP and is thus susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.  A reconciliation of net income to EBITDA is included below.
 
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Potash EBITDA(c)
 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

 
$
283

 
$
341

 
$
141

Phosphates EBITDA(c)
 
143

 
221

 
309

 
275

 
261

 
282

 
358

 
252

ID EBITDA(c)
 
12

 
10

 
18

 
32

 
24

 
6

 
13

 
47

Corporate EBITDA(c)
 
23

 
(50
)
 
(13
)
 
(2
)
 
(36
)
 
(71
)
 
(10
)
 
(14
)
Consolidated EBITDA(c)
 
$
351

 
$
438

 
$
595

 
$
463

 
$
565

 
$
500

 
$
702

 
$
426

Consolidated Foreign Currency Gain/(Loss)
 
25

 
43

 
(39
)
 
27

 
47

 
45

 
(16
)
 
(49
)
Consolidated Gain (Loss) in Value of Share Repurchase Agreement
 
73

 
(60
)
 
(5
)
 
5

 

 

 

 

Consolidated Interest Income/(Expense)
 
(12
)
 
(27
)
 
(25
)
 
(25
)
 
(31
)
 
(31
)
 
(24
)
 
(24
)
Consolidated Depreciation, Depletion & Amortization
 
(167
)
 
(174
)
 
(194
)
 
(190
)
 
(193
)
 
(182
)
 
(191
)
 
(181
)
Consolidated Non-Controlling Interest
 
(1
)
 

 

 
(1
)
 
(1
)
 

 

 
(1
)
Consolidated Provision from/(Benefit for)Income Taxes
 
(131
)
 
3

 
(83
)
 
(78
)
 
(27
)
 
(31
)
 
(73
)
 
(10
)
Consolidated Other Income (Expense)
 
(9
)
 
(5
)
 
(1
)
 
1

 
1

 
(6
)
 
(7
)
 
(1
)
Consolidated Net Income
 
$
129

 
$
218

 
$
248

 
$
202

 
$
361

 
$
295

 
$
391

 
$
160


Cash COGS/sales tonne is defined for the Potash segment as [Cost of Goods Sold per sales tonne less depreciation, depletion, amortization, Canadian royalties and resource taxes and freight included in revenue and cost of goods sold].  Cash COGS/sales tonne is a non-GAAP financial measure provided to assist securities analysts, lenders and others in their comparisons of operational performance but should not be considered as an alternative to, or more meaningful than, Potash Cost of Goods Sold as a measure of operating performance.  Since Cash COGS/sales tonne is not a measure determined in accordance with GAAP and is thus susceptible to varying interpretations and calculations, it may, as presented, not be comparable to other similarly titled measures of other companies.  A reconciliation of Cash COGS/sales tonne to Potash Cost of Goods Sold is included below.
(in millions, except sales tonnes)
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
Cash COGS/sales tonne
 
$
164

 
$
136

 
$
134

 
$
137

 
$
97

 
$
97

 
$
103

 
$
135

Sales tonnes (in thousands)
 
1,862

 
2,355

 
2,500

 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

Cash Cost of Goods Sold
 
$
306

 
$
321

 
$
335

 
$
247

 
$
224

 
$
196

 
$
242

 
$
220

Potash Depreciation, Depletion & Amortization
 
84

 
87

 
92

 
89

 
87

 
79

 
82

 
75

Royalties
 
9

 
6

 
7

 
6

 
8

 
11

 
9

 
7

Resources Taxes
 
57

 
30

 
45

 
46

 
48

 
78

 
55

 
59

Freight included in revenue & cost of goods sold (in millions)(h)
 
61

 
73

 
57

 
51

 
69

 
47

 
47

 
34

Potash Cost of Goods Sold
 
$
517

 
$
517

 
$
536

 
$
439

 
$
436

 
$
411

 
$
435

 
$
395




Mosaic (NYSE:MOS)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Mosaic Charts.
Mosaic (NYSE:MOS)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Mosaic Charts.