Delaware | 001-32327 | 20-1026454 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
3033 Campus Drive Suite E490 Plymouth, Minnesota | 55441 | |
(Address of principal executive offices) | (Zip Code) |
o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
THE MOSAIC COMPANY | ||||||
Date: May 2, 2017 | By: | /s/ Mark J. Isaacson | ||||
Name: | Mark J. Isaacson | |||||
Title: | Senior Vice President, General Counsel | |||||
and Corporate Secretary |
Exhibit No. | Description | ||
99.1 | Press release, dated May 2, 2017, of The Mosaic Company regarding its earnings and results of operations for quarter ended March 31, 2017 | ||
99.2 | Performance data for the period ended March 31, 2017 |
![]() | 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 |
Phosphates Results | 1Q 2017 Actual | 1Q 2017 Guidance |
Average DAP Selling Price | $327 | $315 to $335 |
Sales Volume | 2.3 million tonnes | 2.0 to 2.3 million tonnes |
Phosphate Production | 79% of operational capacity | High 70% range |
Potash Results | 1Q 2017 Actual | 1Q 2017 Guidance |
Average MOP Selling Price | $172 | $165 to $180 |
Sales Volume | 2.0 million tonnes | 2.15 to 2.3 million tonnes |
Potash Production | 83% of operational capacity | High 80% range |
ID Results | 1Q 2017 Actual | 1Q 2017 Guidance |
Sales Volume | 1.3 million tonnes | 1.2 to 1.5 million tonnes |
Gross Margin per Tonne | $21 per tonne | Around $20 per tonne |
• | SG&A expenses to range from $295 to $310 million. |
• | Canadian resource taxes to range from $85 to $135 million. |
• | Brine management costs to range from $160 to $180 million. |
• | Capital expenditures in the range of $800 to $900 million and equity investments in MWSPC of approximately $150 million. |
• | Full-year effective tax rate to be in the upper single digits. |
• | Phosphates sales volumes in the range of 9.5 to 10.25 million tonnes. |
• | Potash sales volumes in the range of 8.0 to 8.75 million tonnes. |
• | International Distribution sales volumes in the range of 7.0 to 7.5 million tonnes. |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | (1 | ) | $ | 0.02 | |||||||
Unrealized loss on derivatives | Corporate & Other | Cost of goods sold | (1 | ) | — | — | ||||||||||
Fees related to purchase of Vale Fertilizantes | 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 | ) |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 88 | $ | (14 | ) | $ | 0.21 | |||||||
Unrealized gain on derivatives | Corporate & Other | Cost of goods sold | 53 | (8 | ) | 0.13 | ||||||||||
Carlsbad insurance proceeds | Potash | Other operating income (expense) | 28 | (4 | ) | 0.07 | ||||||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 64 | 0.18 | |||||||||||
Total Notable Items | $ | 169 | $ | 38 | $ | 0.59 |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2017 | 2016 | |||||||
Net sales | $ | 1,578.1 | $ | 1,674.0 | ||||
Cost of goods sold | 1,448.5 | 1,437.3 | ||||||
Gross margin | 129.6 | 236.7 | ||||||
Selling, general and administrative expenses | 80.9 | 89.8 | ||||||
Other operating expense (income) | 18.6 | (16.5 | ) | |||||
Operating earnings | 30.1 | 163.4 | ||||||
Interest expense, net | (25.8 | ) | (26.1 | ) | ||||
Foreign currency transaction gain | 8.9 | 87.8 | ||||||
Other income (expense) | (4.5 | ) | 0.6 | |||||
Earnings from consolidated companies before income taxes | 8.7 | 225.7 | ||||||
Provision for (benefit from) income taxes | 9.7 | (28.7 | ) | |||||
Earnings (loss) from consolidated companies | (1.0 | ) | 254.4 | |||||
Equity in net earnings (loss) of nonconsolidated companies | (0.1 | ) | 2.5 | |||||
Net earnings (loss) including noncontrolling interests | (1.1 | ) | 256.9 | |||||
Less: Net earnings (loss) attributable to noncontrolling interests | (0.2 | ) | 0.1 | |||||
Net earnings (loss) attributable to Mosaic | $ | (0.9 | ) | $ | 256.8 | |||
Diluted net earnings (loss) per share attributable to Mosaic | $ | — | $ | 0.73 | ||||
Diluted weighted average number of shares outstanding | 350.5 | 353.2 |
The Mosaic Company | (unaudited) |
March 31, 2017 | December 31, 2016 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 675.3 | $ | 673.1 | ||||
Receivables, net | 577.8 | 627.8 | ||||||
Inventories | 1,533.7 | 1,391.1 | ||||||
Other current assets | 429.4 | 365.7 | ||||||
Total current assets | 3,216.2 | 3,057.7 | ||||||
Property, plant and equipment, net | 9,295.0 | 9,198.5 | ||||||
Investments in nonconsolidated companies | 1,063.6 | 1,063.1 | ||||||
Goodwill | 1,639.1 | 1,630.9 | ||||||
Deferred income taxes | 809.7 | 836.4 | ||||||
Other assets | 1,072.8 | 1,054.1 | ||||||
Total assets | $ | 17,096.4 | $ | 16,840.7 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 124.1 | $ | 0.1 | ||||
Current maturities of long-term debt | 40.9 | 38.8 | ||||||
Structured accounts payable arrangements | 202.3 | 128.8 | ||||||
Accounts payable | 536.7 | 471.8 | ||||||
Accrued liabilities | 729.4 | 837.3 | ||||||
Total current liabilities | 1,633.4 | 1,476.8 | ||||||
Long-term debt, less current maturities | 3,786.6 | 3,779.3 | ||||||
Deferred income taxes | 1,048.3 | 1,009.2 | ||||||
Other noncurrent liabilities | 967.6 | 952.9 | ||||||
Equity: | ||||||||
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2017 and December 31, 2016 | — | — | ||||||
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 388,966,019 shares issued and 351,017,170 shares outstanding as of March 31, 2017, 388,187,398 shares issued and 350,238,549 shares outstanding as of December 31, 2016 | 3.5 | 3.5 | ||||||
Capital in excess of par value | 27.6 | 29.9 | ||||||
Retained earnings | 10,861.0 | 10,863.4 | ||||||
Accumulated other comprehensive income (loss) | (1,270.3 | ) | (1,312.2 | ) | ||||
Total Mosaic stockholders' equity | 9,621.8 | 9,584.6 | ||||||
Noncontrolling interests | 38.7 | 37.9 | ||||||
Total equity | 9,660.5 | 9,622.5 | ||||||
Total liabilities and equity | $ | 17,096.4 | $ | 16,840.7 |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2017 | 2016 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net cash provided by operating activities | $ | 146.0 | $ | 265.9 | ||||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (223.8 | ) | (235.6 | ) | ||||
Purchases of available-for-sale securities - restricted | (736.1 | ) | — | |||||
Proceeds from sale of available-for-sale securities - restricted | 734.3 | — | ||||||
Investments in consolidated affiliate | (25.0 | ) | (38.5 | ) | ||||
Other | 5.0 | 0.3 | ||||||
Net cash used in investing activities | (245.6 | ) | (273.8 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Payments of short-term debt | (14.5 | ) | (74.1 | ) | ||||
Proceeds from issuance of short-term debt | 143.0 | 90.2 | ||||||
Payments of structured accounts payable arrangements | (35.3 | ) | (224.3 | ) | ||||
Proceeds from structured accounts payable arrangements | 107.3 | 95.8 | ||||||
Payments of long-term debt | (1.6 | ) | (1.2 | ) | ||||
Proceeds from issuance of long-term debt | 1.3 | — | ||||||
Proceeds from settlement of swaps | — | 4.2 | ||||||
Proceeds from stock option exercises | — | 0.8 | ||||||
Repurchases of stock | — | (75.0 | ) | |||||
Cash dividends paid | (96.4 | ) | (96.2 | ) | ||||
Other | (1.6 | ) | (0.2 | ) | ||||
Net cash provided by (used in) financing activities | 102.2 | (280.0 | ) | |||||
Effect of exchange rate changes on cash | 3.0 | 69.7 | ||||||
Net change in cash, cash equivalents and restricted cash | 5.6 | (218.2 | ) | |||||
Cash and cash equivalents - beginning of period | 711.4 | 2,137.0 | ||||||
Cash and cash equivalents - end of period | $ | 717.0 | $ | 1,918.8 |
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cashflows: | |||||||
Cash and cash equivalents | $ | 675.3 | $ | 1,057.7 | |||
Restricted cash in other current assets | 7.1 | 9.2 | |||||
Restricted cash in other assets | 34.6 | 851.9 | |||||
Total cash, cash equivalents and restricted cash shown in the unaudited statement of cashflows | $ | 717.0 | $ | 1,918.8 | |||
Three months ended March 31, | ||||||||
2017 | 2016 | |||||||
Net earnings (loss) attributable to Mosaic | $ | (0.9 | ) | $ | 256.8 | |||
Basic weighted average number of shares outstanding | 350.5 | 351.3 | ||||||
Dilutive impact of share-based awards | — | 1.9 | ||||||
Diluted weighted average number of shares outstanding | 350.5 | 353.2 | ||||||
Basic net earnings (loss) per share attributable to Mosaic | $ | — | $ | 0.73 | ||||
Diluted net earnings (loss) per share attributable to Mosaic | $ | — | $ | 0.73 |
![]() |
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | 1.08 | $ | 0.45 | $ | 0.44 | $ | 0.73 | $ | (0.03 | ) | $ | 0.11 | $ | 0.03 | $ | — | |||||||||||||||
Notable items impact on earnings per share(a) | 0.03 | (0.17 | ) | (0.16 | ) | 0.59 | (0.09 | ) | (0.30 | ) | (0.23 | ) | (0.04 | ) | ||||||||||||||||||
Adjusted diluted net earnings per share(a) | $ | 1.05 | $ | 0.62 | $ | 0.60 | $ | 0.14 | $ | 0.06 | $ | 0.41 | $ | 0.26 | $ | 0.04 | ||||||||||||||||
Diluted weighted average # of shares outstanding | 363.3 | 356.0 | 354.3 | 353.2 | 349.8 | 351.5 | 351.6 | 350.5 | ||||||||||||||||||||||||
Total Net Sales | $ | 2,488 | $ | 2,106 | $ | 2,163 | $ | 1,674 | $ | 1,675 | $ | 1,952 | $ | 1,862 | $ | 1,578 | ||||||||||||||||
Gross Margin | $ | 608 | $ | 335 | $ | 356 | $ | 237 | $ | 154 | $ | 213 | $ | 206 | $ | 130 | ||||||||||||||||
As % of Sales | 24 | % | 16 | % | 17 | % | 14 | % | 9 | % | 11 | % | 11 | % | 8 | % | ||||||||||||||||
SG&A | 89 | 77 | 95 | 90 | 73 | 67 | 75 | 81 | ||||||||||||||||||||||||
Consolidated Foreign Currency Gain/(Loss) | (16 | ) | (49 | ) | (41 | ) | 88 | 15 | (33 | ) | (30 | ) | 9 | |||||||||||||||||||
Effective Tax Rate(b) | 16 | % | 6 | % | (10 | )% | (13 | )% | (136 | )% | (245 | )% | (47 | )% | 112 | % | ||||||||||||||||
Net Income (Loss) | $ | 391 | $ | 160 | $ | 155 | $ | 257 | $ | (10 | ) | $ | 39 | $ | 12 | $ | (1 | ) | ||||||||||||||
As % of Sales | 16 | % | 8 | % | 7 | % | 15 | % | (1 | )% | 2 | % | 1 | % | — | % | ||||||||||||||||
Consolidated EBITDA(c) | $ | 679 | $ | 375 | $ | 346 | $ | 438 | $ | 202 | $ | 208 | $ | 199 | $ | 193 | ||||||||||||||||
Notable items included in Consolidated EBITDA | $ | 3 | $ | (75 | ) | $ | (72 | ) | $ | 169 | $ | (29 | ) | $ | (104 | ) | $ | (78 | ) | $ | (1 | ) | ||||||||||
Short-term debt | $ | 27 | $ | 18 | $ | 26 | $ | 42 | $ | 54 | $ | 54 | $ | — | $ | 124 | ||||||||||||||||
Current maturities of long-term debt | 57 | 42 | 42 | 42 | 42 | 373 | 39 | 41 | ||||||||||||||||||||||||
Long-term debt, less current maturities | 3,762 | 3,738 | 3,769 | 3,774 | 3,773 | 3,450 | 3,779 | 3,787 | ||||||||||||||||||||||||
Cash & cash equivalents | 2,210 | 1,285 | 1,276 | 1,058 | 1,059 | 654 | 673 | 675 | ||||||||||||||||||||||||
Net | $ | 1,636 | $ | 2,513 | $ | 2,561 | $ | 2,800 | $ | 2,810 | $ | 3,223 | $ | 3,145 | $ | 3,277 | ||||||||||||||||
Cash flow from operations | $ | 681 | $ | 184 | $ | 287 | $ | 265 | $ | 584 | $ | 90 | $ | 323 | $ | 146 | ||||||||||||||||
Cash flow from investments | (338 | ) | (191 | ) | (400 | ) | (274 | ) | (351 | ) | (978 | ) | (264 | ) | (249 | ) | ||||||||||||||||
Cash flow from financing | (675 | ) | (127 | ) | 135 | 279 | (243 | ) | (112 | ) | (255 | ) | 102 | |||||||||||||||||||
Effect of exchange rate changes on cash | 30 | (160 | ) | (31 | ) | 70 | 17 | (8 | ) | (12 | ) | 3 | ||||||||||||||||||||
Net cash flow | $ | (302 | ) | $ | (294 | ) | $ | (8 | ) | $ | (218 | ) | $ | 7 | $ | (1,007 | ) | $ | (208 | ) | $ | 2 | ||||||||||
Cash dividends paid | $ | (98 | ) | $ | (98 | ) | $ | (97 | ) | $ | (96 | ) | $ | (96 | ) | $ | (96 | ) | $ | (96 | ) | $ | (96 | ) | ||||||||
Operating Earnings (Loss) | ||||||||||||||||||||||||||||||||
Potash | $ | 259 | $ | 66 | $ | 113 | $ | 86 | $ | 18 | $ | 7 | $ | 28 | $ | 36 | ||||||||||||||||
Phosphates | 259 | 157 | 47 | 18 | 12 | 6 | 12 | 17 | ||||||||||||||||||||||||
International Distribution | 8 | 44 | 14 | (4 | ) | (11 | ) | 50 | 39 | 11 | ||||||||||||||||||||||
Corporate and Other(d) | (16 | ) | (21 | ) | 30 | 64 | (7 | ) | 7 | (5 | ) | (34 | ) | |||||||||||||||||||
Consolidated Operating Earnings | $ | 510 | $ | 246 | $ | 204 | $ | 164 | $ | 12 | $ | 70 | $ | 74 | $ | 30 | ||||||||||||||||
Segment data (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Phosphates | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(e) | 2,788 | 2,049 | 2,212 | 2,206 | 2,449 | 2,521 | 2,504 | 2,272 | ||||||||||||||||||||||||
Realized average DAP price/tonne(f) | $ | 450 | $ | 451 | $ | 410 | $ | 355 | $ | 343 | $ | 326 | $ | 317 | $ | 327 | ||||||||||||||||
Revenue | $ | 1,385 | $ | 1,032 | $ | 1,031 | $ | 909 | $ | 976 | $ | 930 | $ | 896 | $ | 839 | ||||||||||||||||
Segment Gross Margin | $ | 296 | $ | 199 | $ | 121 | $ | 65 | $ | 100 | $ | 101 | $ | 84 | $ | 56 | ||||||||||||||||
As % of Sales | 21 | % | 19 | % | 12 | % | 7 | % | 10 | % | 11 | % | 9 | % | 7 | % | ||||||||||||||||
Potash | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes)(e) | 2,342 | 1,626 | 1,931 | 1,546 | 2,040 | 2,208 | 1,984 | 1,973 | ||||||||||||||||||||||||
Realized average MOP price/tonne(f) | $ | 280 | $ | 265 | $ | 254 | $ | 207 | $ | 178 | $ | 160 | $ | 169 | $ | 172 | ||||||||||||||||
Revenue | $ | 730 | $ | 492 | $ | 572 | $ | 394 | $ | 457 | $ | 428 | $ | 407 | $ | 414 | ||||||||||||||||
Segment Gross Margin | $ | 295 | $ | 97 | $ | 155 | $ | 98 | $ | 53 | $ | 40 | $ | 66 | $ | 69 | ||||||||||||||||
As % of Sales | 40 | % | 20 | % | 27 | % | 25 | % | 12 | % | 9 | % | 16 | % | 17 | % | ||||||||||||||||
Segment Gross Margin (excluding CRT)(g) | $ | 350 | $ | 156 | $ | 211 | $ | 116 | $ | 91 | $ | 54 | $ | 97 | $ | 93 | ||||||||||||||||
As % of Sales(g) | 48 | % | 32 | % | 37 | % | 30 | % | 20 | % | 13 | % | 24 | % | 22 | % | ||||||||||||||||
International Distribution | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 1,477 | 2,046 | 1,478 | 1,268 | 1,413 | 2,212 | 1,909 | 1,335 | ||||||||||||||||||||||||
Realized average selling price/tonne(f) | $ | 427 | $ | 400 | $ | 407 | $ | 365 | $ | 374 | $ | 380 | $ | 354 | $ | 360 | ||||||||||||||||
Revenue | $ | 637 | $ | 825 | $ | 605 | $ | 467 | $ | 534 | $ | 849 | $ | 684 | $ | 487 | ||||||||||||||||
Segment Gross Margin | $ | 29 | $ | 61 | $ | 38 | $ | 12 | $ | 5 | $ | 71 | $ | 59 | $ | 28 | ||||||||||||||||
As % of Sales | 4 | % | 7 | % | 6 | % | 3 | % | 1 | % | 8 | % | 9 | % | 6 | % |
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
North America | $ | 372 | $ | 250 | $ | 364 | $ | 242 | $ | 304 | $ | 233 | $ | 245 | $ | 254 | ||||||||||||||||
International | 358 | 242 | 208 | 152 | 153 | 195 | 162 | 160 | ||||||||||||||||||||||||
Net Sales | $ | 730 | $ | 492 | $ | 572 | $ | 394 | $ | 457 | $ | 428 | $ | 407 | $ | 414 | ||||||||||||||||
Cost of Goods Sold | 435 | 395 | 417 | 296 | 404 | 388 | 341 | 345 | ||||||||||||||||||||||||
Gross Margin | $ | 295 | $ | 97 | $ | 155 | $ | 98 | $ | 53 | $ | 40 | $ | 66 | $ | 69 | ||||||||||||||||
As % of Sales | 40 | % | 20 | % | 27 | % | 25 | % | 12 | % | 9 | % | 16 | % | 17 | % | ||||||||||||||||
Canadian resource taxes | 55 | 59 | 56 | 18 | 38 | 14 | 31 | 23 | ||||||||||||||||||||||||
Gross Margin (excluding CRT)(g) | $ | 350 | $ | 156 | $ | 211 | $ | 116 | $ | 91 | $ | 54 | $ | 97 | $ | 93 | ||||||||||||||||
As % of Sales(g) | 48 | % | 32 | % | 37 | % | 30 | % | 20 | % | 13 | % | 24 | % | 22 | % | ||||||||||||||||
Freight included in revenue & cost of goods sold (in millions)(h) | $ | 47 | $ | 34 | $ | 56 | $ | 46 | $ | 69 | $ | 55 | $ | 53 | $ | 66 | ||||||||||||||||
Net sales less freight | $ | 683 | $ | 458 | $ | 516 | $ | 348 | $ | 388 | $ | 373 | $ | 354 | $ | 348 | ||||||||||||||||
Cost of Goods Sold less freight | $ | 388 | $ | 361 | $ | 361 | $ | 250 | $ | 335 | $ | 333 | $ | 288 | $ | 279 | ||||||||||||||||
Operating Earnings | $ | 259 | $ | 66 | $ | 113 | $ | 86 | $ | 18 | $ | 7 | $ | 28 | $ | 36 | ||||||||||||||||
Plus: Depreciation, Depletion and Amortization | 82 | 75 | 75 | 75 | 79 | 77 | 77 | 70 | ||||||||||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (25 | ) | 8 | (67 | ) | 125 | 3 | (24 | ) | (27 | ) | 8 | ||||||||||||||||||||
Plus: Other Income (Expense) | — | — | (2 | ) | (1 | ) | — | 78 | — | — | ||||||||||||||||||||||
Plus: Equity (Loss) | — | — | — | — | (16 | ) | — | — | — | |||||||||||||||||||||||
EBITDA(i) | $ | 316 | $ | 149 | $ | 119 | $ | 285 | $ | 84 | $ | 138 | $ | 78 | $ | 114 | ||||||||||||||||
Notable Items Included in EBITDA | $ | (25 | ) | $ | 14 | $ | (73 | ) | $ | 153 | $ | (15 | ) | $ | (26 | ) | $ | (27 | ) | $ | 5 | |||||||||||
Cost of Goods Sold Detail (in millions) | ||||||||||||||||||||||||||||||||
COGS additional detail | ||||||||||||||||||||||||||||||||
Canadian resource taxes | $ | 55 | $ | 59 | $ | 56 | $ | 18 | $ | 38 | $ | 14 | $ | 31 | $ | 23 | ||||||||||||||||
Royalties | 9 | 7 | 6 | 6 | 5 | 4 | 5 | 5 | ||||||||||||||||||||||||
Brine inflow expenses | 45 | 37 | 39 | 37 | 42 | 38 | 36 | 39 | ||||||||||||||||||||||||
Depreciation, depletion and amortization | 82 | 75 | 75 | 75 | 79 | 77 | 77 | 70 | ||||||||||||||||||||||||
Total | $ | 191 | $ | 178 | $ | 176 | $ | 136 | $ | 164 | $ | 133 | $ | 149 | $ | 137 | ||||||||||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Crop Nutrients North America(e) | 641 | 419 | 794 | 650 | 983 | 806 | 792 | 803 | ||||||||||||||||||||||||
Crop Nutrients International(e) | 1,544 | 1,041 | 991 | 749 | 905 | 1,270 | 1,069 | 1,024 | ||||||||||||||||||||||||
Non-Agricultural | 157 | 166 | 146 | 147 | 152 | 132 | 123 | 146 | ||||||||||||||||||||||||
Total(e) | 2,342 | 1,626 | 1,931 | 1,546 | 2,040 | 2,208 | 1,984 | 1,973 | ||||||||||||||||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Production Volume | 2,362 | 1,749 | 1,850 | 2,018 | 1,769 | 1,662 | 2,147 | 2,048 | ||||||||||||||||||||||||
Operating Rate | 90 | % | 67 | % | 70 | % | 77 | % | 67 | % | 63 | % | 82 | % | 83 | % | ||||||||||||||||
Realized prices (FOB plant, $/tonne) | ||||||||||||||||||||||||||||||||
MOP - North America crop nutrients(f)(j) | $ | 345 | $ | 293 | $ | 264 | $ | 184 | $ | 173 | $ | 160 | $ | 182 | $ | 189 | ||||||||||||||||
MOP - International(f) | $ | 244 | $ | 236 | $ | 227 | $ | 195 | $ | 158 | $ | 146 | $ | 147 | $ | 150 | ||||||||||||||||
MOP - Average(f)(k) | $ | 280 | $ | 265 | $ | 254 | $ | 207 | $ | 178 | $ | 160 | $ | 169 | $ | 172 | ||||||||||||||||
Brine inflow cost/production tonne | $ | 19 | $ | 21 | $ | 21 | $ | 18 | $ | 24 | $ | 23 | $ | 17 | $ | 19 | ||||||||||||||||
Cash COGS/sales tonne | $ | 103 | $ | 135 | $ | 116 | $ | 98 | $ | 104 | $ | 108 | $ | 88 | $ | 92 | ||||||||||||||||
Operating earnings/sales tonne(l) | $ | 111 | $ | 41 | $ | 59 | $ | 56 | $ | 9 | $ | 3 | $ | 14 | $ | 18 | ||||||||||||||||
EBITDA(i)/sales tonne(l) | $ | 146 | $ | 87 | $ | 97 | $ | 104 | $ | 48 | $ | 38 | $ | 39 | $ | 58 | ||||||||||||||||
Potash CAPEX (in millions) | $ | 88 | $ | 119 | $ | 130 | $ | 113 | $ | 98 | $ | 99 | $ | 107 | $ | 106 |
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
North America | $ | 705 | $ | 570 | $ | 809 | $ | 597 | $ | 476 | $ | 475 | $ | 585 | $ | 469 | ||||||||||||||||
International | 680 | 462 | 222 | 312 | 500 | 455 | 311 | 370 | ||||||||||||||||||||||||
Net Sales | $ | 1,385 | $ | 1,032 | $ | 1,031 | $ | 909 | $ | 976 | $ | 930 | $ | 896 | $ | 839 | ||||||||||||||||
Cost of Goods Sold | 1,089 | 833 | 910 | 844 | 876 | 829 | 812 | 783 | ||||||||||||||||||||||||
Gross Margin | $ | 296 | $ | 199 | $ | 121 | $ | 65 | $ | 100 | $ | 101 | $ | 84 | $ | 56 | ||||||||||||||||
As % of Sales | 21 | % | 19 | % | 12 | % | 7 | % | 10 | % | 11 | % | 9 | % | 7 | % | ||||||||||||||||
Freight included in revenue & cost of goods sold (in millions) | $ | 98 | $ | 79 | $ | 84 | $ | 82 | $ | 87 | $ | 86 | $ | 91 | $ | 132 | ||||||||||||||||
Net sales less freight | $ | 1,287 | $ | 953 | $ | 947 | $ | 827 | $ | 889 | $ | 844 | $ | 805 | $ | 708 | ||||||||||||||||
Cost of Goods Sold less freight | $ | 991 | $ | 754 | $ | 826 | $ | 762 | $ | 789 | $ | 743 | $ | 721 | $ | 651 | ||||||||||||||||
Operating Earnings | $ | 259 | $ | 157 | $ | 47 | $ | 18 | $ | 12 | $ | 6 | $ | 12 | $ | 17 | ||||||||||||||||
Plus: Depreciation, Depletion, and Amortization | 99 | 96 | 101 | 99 | 101 | 84 | 78 | 80 | ||||||||||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (2 | ) | 9 | 6 | (6 | ) | — | 2 | 4 | (2 | ) | |||||||||||||||||||||
Plus: Other Income (Expense) | — | — | — | 1 | — | — | (10 | ) | (2 | ) | ||||||||||||||||||||||
Plus: Equity Earnings (Loss) | — | (1 | ) | (1 | ) | 2 | 2 | (2 | ) | (3 | ) | — | ||||||||||||||||||||
Less: Earnings from Consolidated Noncontrolling Interests | 2 | 2 | 3 | 3 | 2 | 2 | 4 | 2 | ||||||||||||||||||||||||
EBITDA(i) | $ | 354 | $ | 259 | $ | 150 | $ | 111 | $ | 113 | $ | 88 | $ | 77 | $ | 91 | ||||||||||||||||
Notable Items Included in EBITDA | $ | (2 | ) | $ | (1 | ) | $ | (20 | ) | $ | (6 | ) | $ | (49 | ) | $ | (60 | ) | $ | (33 | ) | $ | (5 | ) | ||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
North America - DAP/MAP | 895 | 709 | 1,049 | 951 | 738 | 849 | 1,052 | 831 | ||||||||||||||||||||||||
International - DAP/MAP(e) | 1,224 | 819 | 595 | 656 | 1,022 | 866 | 711 | 655 | ||||||||||||||||||||||||
MicroEssentials®(e) | 516 | 389 | 437 | 468 | 567 | 658 | 607 | 692 | ||||||||||||||||||||||||
Feed and Other | 153 | 132 | 131 | 131 | 122 | 148 | 134 | 94 | ||||||||||||||||||||||||
Total | 2,788 | 2,049 | 2,212 | 2,206 | 2,449 | 2,521 | 2,504 | 2,272 | ||||||||||||||||||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Total tonnes produced(m) | 2,504 | 2,434 | 2,226 | 2,205 | 2,391 | 2,461 | 2,463 | 2,303 | ||||||||||||||||||||||||
Operating Rate | 86 | % | 83 | % | 76 | % | 75 | % | 82 | % | 84 | % | 84 | % | 79 | % | ||||||||||||||||
Realized prices ($/tonne) | ||||||||||||||||||||||||||||||||
DAP (FOB plant)(f) | $ | 450 | $ | 451 | $ | 410 | $ | 355 | $ | 343 | $ | 326 | $ | 317 | $ | 327 | ||||||||||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||||||||||
Ammonia (tonne)(n) | $ | 417 | $ | 418 | $ | 404 | $ | 370 | $ | 320 | $ | 287 | $ | 259 | $ | 285 | ||||||||||||||||
Sulfur (long ton)(o) | $ | 161 | $ | 151 | $ | 146 | $ | 130 | $ | 112 | $ | 93 | $ | 87 | $ | 87 | ||||||||||||||||
Blended rock | $ | 61 | $ | 61 | $ | 60 | $ | 60 | $ | 65 | $ | 60 | $ | 58 | $ | 59 | ||||||||||||||||
Average Market prices ($/tonne) | ||||||||||||||||||||||||||||||||
Ammonia (tonne)(p) | $ | 462 | $ | 454 | $ | 412 | $ | 322 | $ | 311 | $ | 259 | $ | 220 | $ | 307 | ||||||||||||||||
Sulfur (long ton)(q) | $ | 135 | $ | 136 | $ | 115 | $ | 98 | $ | 73 | $ | 66 | $ | 69 | $ | 75 | ||||||||||||||||
Natural Gas(r) | $ | 2.7 | $ | 2.7 | $ | 2.2 | $ | 2.0 | $ | 2.2 | $ | 2.8 | $ | 3.2 | $ | 3.1 | ||||||||||||||||
Full production conversion cost/production tonne | $ | 83 | $ | 89 | $ | 100 | $ | 90 | $ | 85 | $ | 81 | $ | 85 | $ | 97 | ||||||||||||||||
Operating earnings/sales tonne(l) | $ | 93 | $ | 77 | $ | 21 | $ | 8 | $ | 5 | $ | 2 | $ | 5 | $ | 7 | ||||||||||||||||
EBITDA(i)/sales tonne(l) | $ | 128 | $ | 123 | $ | 67 | $ | 54 | $ | 65 | $ | 34 | $ | 31 | $ | 40 | ||||||||||||||||
Phosphates CAPEX (in millions) | $ | 128 | $ | 118 | $ | 153 | $ | 112 | $ | 90 | $ | 89 | $ | 89 | $ | 103 |
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
Net Sales | $ | 637 | $ | 825 | $ | 605 | $ | 467 | $ | 534 | $ | 849 | $ | 684 | $ | 487 | ||||||||||||||||
Cost of Goods Sold | 608 | 764 | 567 | 455 | 529 | 778 | 625 | 459 | ||||||||||||||||||||||||
Gross Margin | $ | 29 | $ | 61 | $ | 38 | $ | 12 | $ | 5 | $ | 71 | $ | 59 | $ | 28 | ||||||||||||||||
As % of Sales | 4 | % | 7 | % | 6 | % | 3 | % | 1 | % | 8 | % | 9 | % | 6 | % | ||||||||||||||||
Per tonne | $ | 19 | $ | 30 | $ | 26 | $ | 9 | $ | 3 | $ | 32 | $ | 31 | $ | 21 | ||||||||||||||||
SG&A and Other Operating Expenses | $ | 21 | $ | 17 | $ | 24 | $ | 16 | $ | 16 | $ | 21 | $ | 20 | $ | 17 | ||||||||||||||||
Operating Earnings (Loss) | $ | 8 | $ | 44 | $ | 14 | $ | (4 | ) | $ | (11 | ) | $ | 50 | $ | 39 | $ | 11 | ||||||||||||||
Plus: Depreciation, Depletion and Amortization | 5 | 3 | 3 | 4 | 4 | 4 | 4 | 4 | ||||||||||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 2 | (118 | ) | (4 | ) | 16 | 11 | (10 | ) | (7 | ) | — | ||||||||||||||||||||
Plus: Other (Expense) | — | (1 | ) | — | — | — | (1 | ) | (2 | ) | (3 | ) | ||||||||||||||||||||
Less: Earnings from Consolidated Noncontrolling Interests | — | 1 | — | — | — | 1 | 1 | — | ||||||||||||||||||||||||
EBITDA(i) | $ | 15 | $ | (73 | ) | $ | 13 | $ | 16 | $ | 4 | $ | 42 | $ | 33 | $ | 12 | |||||||||||||||
Notable Items Included in EBITDA | 2 | (118 | ) | (4 | ) | 17 | 11 | (10 | ) | (7 | ) | — | ||||||||||||||||||||
Operating Data | ||||||||||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||||||||||
Total | 1,477 | 2,046 | 1,478 | 1,268 | 1,413 | 2,212 | 1,909 | 1,335 | ||||||||||||||||||||||||
Realized prices ($/tonne) | ||||||||||||||||||||||||||||||||
Average selling price (FOB destination)(s) | $ | 427 | $ | 400 | $ | 407 | $ | 365 | $ | 374 | $ | 380 | $ | 354 | $ | 360 | ||||||||||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||||||||||
DAP/MAP from Mosaic | 363 | 349 | 137 | 167 | 505 | 396 | 219 | 169 | ||||||||||||||||||||||||
MicroEssentials® from Mosaic | 198 | 155 | 11 | 101 | 303 | 303 | 173 | 314 | ||||||||||||||||||||||||
Potash from Mosaic/Canpotex | 769 | 556 | 464 | 360 | 822 | 473 | 365 | 650 | ||||||||||||||||||||||||
International Distribution CAPEX (in millions) | $ | 6 | $ | 4 | $ | 9 | $ | 5 | $ | 7 | $ | 5 | $ | 7 | $ | 8 | ||||||||||||||||
Working Capital (in millions)(t) | $ | 149 | $ | 105 | $ | 109 | $ | 84 | $ | 28 | $ | 10 | $ | 74 | $ | 70 | ||||||||||||||||
Operating earnings (loss)/sales tonne(l) | $ | 5 | $ | 22 | $ | 9 | $ | (3 | ) | $ | (8 | ) | $ | 23 | $ | 20 | $ | 8 | ||||||||||||||
EBITDA(i)/sales tonne(l) | $ | 9 | $ | 23 | $ | 12 | $ | — | $ | (5 | ) | $ | 24 | $ | 17 | $ | 9 |
Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | |||||||||||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||||||||||
Net Sales | $ | (265 | ) | $ | (243 | ) | $ | (45 | ) | $ | (96 | ) | $ | (292 | ) | $ | (255 | ) | $ | (125 | ) | $ | (163 | ) | ||||||||
Cost of Goods Sold | (253 | ) | (222 | ) | (87 | ) | (158 | ) | (288 | ) | (256 | ) | (122 | ) | (139 | ) | ||||||||||||||||
Gross Margin (Loss) | $ | (12 | ) | $ | (21 | ) | $ | 42 | $ | 62 | $ | (4 | ) | $ | 1 | $ | (3 | ) | $ | (24 | ) | |||||||||||
Elimination of profit in inventory income (loss) included in COGS | $ | (34 | ) | $ | 12 | $ | 50 | $ | 18 | $ | (25 | ) | $ | 20 | $ | 12 | $ | (19 | ) | |||||||||||||
Unrealized gain (loss) on derivatives included in COGS | $ | 27 | $ | (22 | ) | $ | 1 | $ | 53 | $ | 30 | $ | (8 | ) | $ | (4 | ) | $ | (1 | ) | ||||||||||||
Operating Earnings (Loss) | $ | (16 | ) | $ | (21 | ) | $ | 30 | $ | 64 | $ | (7 | ) | $ | 7 | $ | (5 | ) | $ | (34 | ) | |||||||||||
Plus: Depreciation, Depletion and Amortization | 5 | 7 | 7 | 6 | 5 | 8 | 6 | 5 | ||||||||||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 9 | 52 | 24 | (47 | ) | 1 | — | — | 3 | |||||||||||||||||||||||
Plus: Other (Expense) | (7 | ) | (1 | ) | — | (1 | ) | — | (78 | ) | 7 | — | ||||||||||||||||||||
Plus: Equity Earnings | 1 | — | — | 1 | — | — | — | — | ||||||||||||||||||||||||
Less: (Loss) from Consolidated Noncontrolling Interests | (2 | ) | (3 | ) | (3 | ) | (3 | ) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | ||||||||||||||||
EBITDA(i) | $ | (6 | ) | $ | 40 | $ | 64 | $ | 26 | $ | 1 | $ | (60 | ) | $ | 11 | $ | (23 | ) | |||||||||||||
Notable Items Included in EBITDA | $ | 28 | $ | 30 | $ | 25 | $ | 5 | $ | 24 | $ | (8 | ) | $ | (4 | ) | $ | (1 | ) |
Q1 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (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 Fertilizantes | Corporate & Other | Other operating expense | (3 | ) | — | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (9 | ) | (0.03 | ) | |||||||
Liquidated damages for CF ammonia agreement | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Resolution of Canadian tax audit | Potash | Cost of goods sold | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (1 | ) | $ | (10 | ) | $ | (0.04 | ) |
Q4 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction (loss) gain | Consolidated | Foreign currency transaction (loss) gain | $ | (30 | ) | $ | (2 | ) | $ | (0.09 | ) | |||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | (4 | ) | — | (0.01 | ) | |||||||
Water loss expense | Phosphates | Other operating expenses | (10 | ) | (1 | ) | (0.03 | ) | ||||||
ARO adjustment | Phosphates | Other operating expenses | (21 | ) | (2 | ) | (0.07 | ) | ||||||
Depletion adjustment | Phosphates | Cost of goods sold | 9 | 1 | 0.03 | |||||||||
Pension de-risking | Consolidated | Other operating expenses | (6 | ) | — | (0.02 | ) | |||||||
Costs related to purchase of Vale Fertilizantes Business | Corporate & Other | Other operating expenses | (4 | ) | — | (0.01 | ) | |||||||
Gain on sale of equity investment | Phosphates | Other expense | 7 | 1 | 0.02 | |||||||||
Realized loss on RCRA Trust securities | Phosphates | Other expense | (10 | ) | (1 | ) | (0.03 | ) | ||||||
Discrete tax items | Consolidated | Benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Total Notable Items | $ | (69 | ) | $ | (11 | ) | $ | (0.23 | ) |
Q3 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | (1 | ) | $ | (0.10 | ) | |||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | (8 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | 2 | 0.01 | ||||||||||
Asset reserve adjustment | Phosphates | Other operating income (expense) | 4 | — | 0.01 | |||||||||
New Wales water loss incident | Phosphates | Other operating income (expense) | (60 | ) | (2 | ) | (0.18 | ) | ||||||
Restructuring | Consolidated | Other operating income (expense) | (8 | ) | — | (0.02 | ) | |||||||
Total Notable Items | $ | (104 | ) | $ | (1 | ) | $ | (0.30 | ) |
Q2 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 15 | $ | (1 | ) | $ | 0.04 | |||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 30 | (3 | ) | 0.08 | ||||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | (5 | ) | (0.01 | ) | ||||||||
Restructuring | Consolidated | Other operating income (expense) | (11 | ) | 1 | (0.03 | ) | |||||||
Prince Rupert write-off | Potash | Equity earnings | (24 | ) | 8 | (0.05 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (47 | ) | 4 | (0.12 | ) | |||||||
Total Notable Items | $ | (37 | ) | $ | 4 | $ | (0.09 | ) |
Q1 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 88 | $ | (14 | ) | $ | 0.21 | |||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 53 | (8 | ) | 0.13 | ||||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | 64 | 0.18 | ||||||||||
Carlsbad insurance proceeds | Potash | Other operating income (expense) | 28 | (4 | ) | 0.07 | ||||||||
Total Notable Items | $ | 169 | $ | 38 | $ | 0.59 |
Q4 2015 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (41 | ) | $ | 5 | $ | (0.10 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 1 | — | — | |||||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | 6 | 0.02 | ||||||||||
ARO year-end adjustment | Potash | Other operating income (expense) | (6 | ) | 1 | (0.02 | ) | |||||||
ARO year-end adjustment | Phosphates | Other operating income (expense) | (26 | ) | 3 | (0.06 | ) | |||||||
Total Notable Items | $ | (72 | ) | $ | 15 | $ | (0.16 | ) |
Q3 2015 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (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 (benefit from) income taxes | 3 | 0.01 | ||||||||||
Write-off of fixed assets | Phosphates | Other operating income (expense) | (10 | ) | 2 | (0.02 | ) | |||||||
Consumption tax refund | Potash | Cost of goods sold | 6 | (1 | ) | 0.01 | ||||||||
Total Notable Items | $ | (75 | ) | $ | 16 | $ | (0.17 | ) |
Q2 2015 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (16 | ) | $ | 3 | $ | (0.04 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 27 | (5 | ) | 0.06 | ||||||||
Discrete tax items | Consolidated | Provision for (benefit from) income taxes | 10 | 0.03 | ||||||||||
Write down of equity investment | Corporate & Other | Other non-operating income (expense) | (8 | ) | — | (0.02 | ) | |||||||
Total Notable Items | $ | 3 | $ | 8 | $ | 0.03 |
(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. 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) | Includes a discrete income tax benefit of approximately $10 million in Q2 2015, $3 million in Q3 2015, $6 million in Q4 2015, $64 million in Q1 2016, and $2 million in Q3 2016 and a discrete income tax expense of approximately $5 million in Q2 2016, $7 million in Q4 2016 and $9 million in Q1 2017. |
(c) | The Company defines Consolidated EBITDA, a Non-GAAP measure, as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes, as further described in "Non-GAAP Reconciliations". |
(d) | Includes elimination of intersegment sales. |
(e) | Sales volumes include intersegment sales. |
(f) | FOB Plant, sales to unrelated parties. |
(g) | Gross margin (excluding CRT) is calculated as GAAP gross margin less Canadian resource taxes (CRT), and Gross margin (excluding CRT) As % of Sales is calculated as GAAP gross margin less CRT as a percentage of sales. Gross margin (excluding CRT) is a non-GAAP financial measure and Gross margin (excluding CRT) As % of Sales is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliations." |
(h) | Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales. |
(i) | The Company defines segment EBITDA as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. Segment EBITDA/sales tonne is calculated as the related segment's EBITDA per sales tonne. EBITDA presented on a segment basis is a Non-GAAP financial measure and segment EBITDA/sales tonne is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliations." |
(j) | This price excludes industrial and feed sales. |
(k) | This price includes industrial and feed sales. |
(l) | Segment Operating Earnings (Loss)/sales tonne is calculated for each segment as that segment’s Operating Earnings (Loss) divided by sales tonnes. Segment EBITDA/sales tonne is calculated for each segment as that segment’s 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) | Average price of all products sold by International Distribution. |
(t) | Calculated as current assets less current liabilities for the International Distribution segment. |
(u) | Tax impact is based on our expected annual effective tax rate. |
(in millions) | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | ||||||||||||||||||||||||
Consolidated Net Income (Loss) | $ | 391 | $ | 160 | $ | 155 | $ | 257 | $ | (10 | ) | $ | 39 | $ | 12 | $ | (1 | ) | ||||||||||||||
Less: Consolidated Interest Expense, Net | (24 | ) | (24 | ) | (19 | ) | (26 | ) | (33 | ) | (26 | ) | (27 | ) | (26 | ) | ||||||||||||||||
Plus: Consolidated Depreciation, Depletion & Amortization | 191 | 181 | 186 | 184 | 189 | 173 | 165 | 159 | ||||||||||||||||||||||||
Plus: Consolidated Provision for (Benefit from) Income Taxes | 73 | 10 | (14 | ) | (29 | ) | (10 | ) | (30 | ) | (6 | ) | 10 | |||||||||||||||||||
Consolidated EBITDA | 679 | 375 | 346 | 438 | 202 | 208 | 198 | 194 |
(in millions, except sales tonnes) | Q2 2015 | Q3 2015 | Q4 2015 | Q1 2016 | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | ||||||||||||||||||||||||
Potash Cost of Goods Sold | $ | 435 | $ | 395 | $ | 417 | $ | 296 | $ | 404 | $ | 388 | $ | 341 | $ | 345 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Freight included in revenue & cost of goods sold() | 47 | 34 | 56 | 46 | 69 | 55 | 53 | 66 | ||||||||||||||||||||||||
Canadian resource taxes | 55 | 59 | 56 | 18 | 38 | 14 | 31 | 23 | ||||||||||||||||||||||||
Royalties | 9 | 7 | 6 | 6 | 5 | 4 | 5 | 5 | ||||||||||||||||||||||||
Potash Depreciation, Depletion & Amortization | 82 | 75 | 75 | 75 | 79 | 77 | 77 | 70 | ||||||||||||||||||||||||
Cash Cost of Goods Sold | $ | 242 | $ | 220 | $ | 224 | $ | 151 | $ | 213 | $ | 238 | $ | 175 | $ | 180 | ||||||||||||||||
Sales tonnes (in thousands of mt) | 2,342 | 1,626 | 1,931 | 1,546 | 2,040 | 2,208 | 1,984 | 1,973 | ||||||||||||||||||||||||
Cash COGS/sales tonne | $ | 103 | $ | 135 | $ | 116 | $ | 98 | $ | 104 | $ | 108 | $ | 88 | $ | 92 |
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