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 7, 2018 | By: | /s/ Mark J. Isaacson | |||||
Name: | Mark J. Isaacson | ||||||
Title: | Senior Vice President, General Counsel | ||||||
and Corporate Secretary |
The Mosaic Company 3033 Campus Drive, Suite E490 Plymouth, MN 55441 www.mosaicco.com |
FOR IMMEDIATE RELEASE | ||||
Media Ben Pratt The Mosaic Company 763-577-6102 benjamin.pratt@mosaicco.com | Investors Laura Gagnon The Mosaic Company 763-577-8213 investor@mosaicco.com |
Phosphates Results* | 1Q 2018 Actual | 1Q 2018 Guidance |
Sales Volumes | 1.9 million tonnes | 1.9 to 2.2 million tonnes |
Gross Margin (GAAP) | $49 per tonne | |
Adjusted Gross Margin (non GAAP) | $57 per tonne | $55 to $65 per tonne |
Potash Results | 1Q 2018 Actual | 1Q 2018 Guidance |
Sales Volumes | 1.7 million tonnes | 1.7 to 2.0 million tonnes |
Gross Margin (GAAP) | $61 per tonne | |
Adjusted Gross Margin (non GAAP) | $64 per tonne | $50 to $60 per tonne |
Mosaic Fertilizantes Results* | 1Q 2018 Actual | 1Q 2018 Guidance |
Sales Volumes | 1.6 million tonnes | 1.3 to 1.6 million tonnes |
Gross Margin (GAAP) | $37 per tonne | |
Adjusted Gross Margin (non GAAP) | $37 per tonne | $25 to $35 per tonne |
Sales Volumes millions of tonnes* | Adjusted Gross Margin | |
Potash | 2.1 - 2.4 | $50 - $60 per tonne |
Phosphates | 2.1 - 2.4 | $65 - $75 per tonne |
Mosaic Fertilizantes | 2.0 - 2.3 | $20 - $30 per tonne |
Corporate and Other | $(30) - $(15) million |
$ in millions except per share | Full Year 2018 |
Adjusted earnings per share | $1.20 - $1.60 per share |
SG&A | $325 - $350 |
Adjusted EBITDA | $1,700 - $1,900 |
Capital Expenditures | $900 - $1,100 |
Millions of tonnes | Full Year 2018 Sales Volumes (finished product) |
Potash | 8.2 - 9.0 |
Phosphates | 8.2 - 9.0 |
Mosaic Fertilizantes | 9.2 - 10.0* |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | 9 | $ | (0.06 | ) | ||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (12 | ) | 3 | (0.02 | ) | |||||||||
Fees related to purchase of Vale Fertilizantes | Corporate and Other | Other operating income (expense) | (18 | ) | 5 | (0.03 | ) | |||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (8 | ) | 2 | (0.02 | ) | |||||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (16 | ) | 5 | (0.03 | ) | |||||||||
Refinement of inventory costing | Potash | Cost of goods sold | (5 | ) | 2 | (0.01 | ) | |||||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (15 | ) | 4 | (0.03 | ) | |||||||||
Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||||
Severance | Corporate and Other | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 48 | 0.13 | |||||||||||
Total Notable Items | $ | (115 | ) | $ | 80 | $ | (0.09 | ) |
Amount | Tax effect | EPS impact | ||||||||||||||
Description | Segment | Line item | (in millions) | (in millions) | (per share) | |||||||||||
Foreign currency transaction loss | 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 | ) |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2018 | 2017 | |||||||
Net sales | $ | 1,933.7 | $ | 1,578.1 | ||||
Cost of goods sold | 1,691.6 | 1,448.5 | ||||||
Gross margin | 242.1 | 129.6 | ||||||
Selling, general and administrative expenses | 93.6 | 80.9 | ||||||
Other operating expense | 67.8 | 18.6 | ||||||
Operating earnings | 80.7 | 30.1 | ||||||
Interest expense, net | (49.4 | ) | (25.8 | ) | ||||
Foreign currency transaction (loss) gain | (32.2 | ) | 8.9 | |||||
Other expense | (5.6 | ) | (4.5 | ) | ||||
(Loss) earnings from consolidated companies before income taxes | (6.5 | ) | 8.7 | |||||
(Benefits from) provision for income taxes | (49.9 | ) | 9.7 | |||||
Earnings (loss) from consolidated companies | 43.4 | (1.0 | ) | |||||
Equity in net loss of nonconsolidated companies | (3.3 | ) | (0.1 | ) | ||||
Net earnings (loss) including noncontrolling interests | 40.1 | (1.1 | ) | |||||
Less: Net loss attributable to noncontrolling interests | (2.2 | ) | (0.2 | ) | ||||
Net earnings (loss) attributable to Mosaic | $ | 42.3 | $ | (0.9 | ) | |||
Diluted net earnings per share attributable to Mosaic | $ | 0.11 | $ | — | ||||
Diluted weighted average number of shares outstanding | 384.1 | 350.5 |
The Mosaic Company | (unaudited) |
March 31, 2018 | December 31, 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 659.4 | $ | 2,153.5 | ||||
Receivables, net | 708.4 | 642.6 | ||||||
Inventories | 2,059.0 | 1,547.2 | ||||||
Other current assets | 414.6 | 273.2 | ||||||
Total current assets | 3,841.4 | 4,616.5 | ||||||
Property, plant and equipment, net | 11,865.3 | 9,711.7 | ||||||
Investments in nonconsolidated companies | 836.3 | 1,089.5 | ||||||
Goodwill | 1,760.6 | 1,693.6 | ||||||
Deferred income taxes | 495.9 | 254.6 | ||||||
Other assets | 1,652.8 | 1,267.5 | ||||||
Total assets | $ | 20,452.3 | $ | 18,633.4 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 71.8 | $ | 6.1 | ||||
Current maturities of long-term debt | 250.8 | 343.5 | ||||||
Structured accounts payable arrangements | 426.7 | 386.2 | ||||||
Accounts payable | 679.4 | 540.9 | ||||||
Accrued liabilities | 791.8 | 754.4 | ||||||
Total current liabilities | 2,220.5 | 2,031.1 | ||||||
Long-term debt, less current maturities | 4,823.1 | 4,878.1 | ||||||
Deferred income taxes | 1,178.5 | 1,117.3 | ||||||
Other noncurrent liabilities | 1,550.5 | 967.8 | ||||||
Equity: | ||||||||
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2018 and December 31, 2017 | — | — | ||||||
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 389,188,324 shares issued and 385,416,049 shares outstanding as of March 31, 2018, 388,998,498 shares issued and 351,049,649 shares outstanding as of December 31, 2017 | 3.8 | 3.5 | ||||||
Capital in excess of par value | 977.2 | 44.5 | ||||||
Retained earnings | 10,675.6 | 10,631.1 | ||||||
Accumulated other comprehensive loss | (1,201.6 | ) | (1,061.6 | ) | ||||
Total Mosaic stockholders' equity | 10,455.0 | 9,617.5 | ||||||
Noncontrolling interests | 224.7 | 21.6 | ||||||
Total equity | 10,679.7 | 9,639.1 | ||||||
Total liabilities and equity | $ | 20,452.3 | $ | 18,633.4 |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2018 | 2017 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net cash provided by (used in) operating activities | $ | (71.0 | ) | $ | 146.0 | |||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (223.3 | ) | (223.8 | ) | ||||
Purchases of available-for-sale securities - restricted | (185.7 | ) | (736.1 | ) | ||||
Proceeds from sale of available-for-sale securities - restricted | 184.0 | 734.3 | ||||||
Investments in consolidated affiliate | 1.3 | (25.0 | ) | |||||
Proceeds from sale of fixed assets | 1.2 | — | ||||||
Acquisition, net of cash acquired | (994.6 | ) | — | |||||
Other | (3.3 | ) | 5.0 | |||||
Net cash used in investing activities | (1,220.4 | ) | (245.6 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Payments of short-term debt | — | (14.5 | ) | |||||
Proceeds from issuance of short-term debt | 65.3 | 143.0 | ||||||
Payments of structured accounts payable arrangements | (235.7 | ) | (35.3 | ) | ||||
Proceeds from structured accounts payable arrangements | 173.8 | 107.3 | ||||||
Payments of long-term debt | (206.9 | ) | (1.6 | ) | ||||
Proceeds from issuance of long-term debt | — | 1.3 | ||||||
Cash dividends paid | (9.6 | ) | (96.4 | ) | ||||
Other | (0.2 | ) | (1.6 | ) | ||||
Net cash provided by (used in) financing activities | (213.3 | ) | 102.2 | |||||
Effect of exchange rate changes on cash | 13.4 | 3.0 | ||||||
Net change in cash, cash equivalents and restricted cash | (1,491.3 | ) | 5.6 | |||||
Cash and cash equivalents - beginning of period | 2,194.4 | 711.4 | ||||||
Cash and cash equivalents - end of period | $ | 703.1 | $ | 717.0 |
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cash flows: | |||||||
Cash and cash equivalents | $ | 659.4 | $ | 675.3 | |||
Restricted cash in other current assets | 9.4 | 7.1 | |||||
Restricted cash in other assets | 34.3 | 34.6 | |||||
Total cash, cash equivalents and restricted cash shown in the unaudited statement of cash flows | $ | 703.1 | $ | 717.0 | |||
Three months ended March 31, | ||||||||
2018 | 2017 | |||||||
Net earnings attributable to Mosaic | $ | 42.3 | $ | (0.9 | ) | |||
Basic weighted average number of shares outstanding | 382.6 | 350.5 | ||||||
Dilutive impact of share-based awards | 1.5 | — | ||||||
Diluted weighted average number of shares outstanding | 384.1 | 350.5 | ||||||
Basic net earnings per share attributable to Mosaic | $ | 0.11 | $ | — | ||||
Diluted net earnings per share attributable to Mosaic | $ | 0.11 | $ | — |
Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | (0.03 | ) | $ | 0.11 | $ | 0.03 | $ | — | $ | 0.28 | $ | 0.65 | $ | (1.23 | ) | $ | 0.11 | ||||||
Notable items impact on earnings per share(a) | (0.09 | ) | (0.3 | ) | (0.23 | ) | (0.04 | ) | (0.01 | ) | 0.22 | (1.57 | ) | (0.09 | ) | |||||||||
Adjusted diluted net earnings per share(a) | $ | 0.06 | $ | 0.41 | $ | 0.26 | $ | 0.04 | $ | 0.29 | $ | 0.43 | $ | 0.34 | $ | 0.20 | ||||||||
Diluted weighted average # of shares outstanding | 349.8 | 351.5 | 351.6 | 350.5 | 352 | 352.2 | 351 | 384.1 | ||||||||||||||||
Total Net Sales | $ | 1,675 | $ | 1,952 | $ | 1,862 | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | ||||||||
Cost of goods sold | 1,521 | 1,739 | 1,656 | 1,449 | 1,562 | 1,744 | 1,812 | 1,691 | ||||||||||||||||
Gross Margin | $ | 154 | $ | 213 | $ | 206 | $ | 130 | $ | 192 | $ | 241 | $ | 280 | $ | 243 | ||||||||
SG&A | 73 | 67 | 75 | 81 | 71 | 66 | 83 | 94 | ||||||||||||||||
Other operating expense | 69 | 76 | 57 | 19 | 27 | (39 | ) | 70 | 68 | |||||||||||||||
Operating earnings | $ | 12 | $ | 70 | $ | 74 | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | ||||||||
Interest expense, net | (33 | ) | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | ||||||||
Consolidated foreign currency gain/(loss) | 15 | (33 | ) | (30 | ) | 9 | 9 | 59 | (27 | ) | (32 | ) | ||||||||||||
Earnings from consolidated companies before income taxes | (7 | ) | 12 | 12 | 9 | 69 | 237 | 59 | (7 | ) | ||||||||||||||
(Benefit from) provision for income taxes | (10 | ) | (30 | ) | (5 | ) | 10 | (23 | ) | 18 | 490 | (50 | ) | |||||||||||
Earnings from consolidated companies | $ | 3 | $ | 42 | $ | 17 | $ | (1 | ) | $ | 91 | $ | 220 | $ | (431 | ) | $ | 43 | ||||||
Equity in net earnings (loss) of nonconsolidated companies | (14 | ) | (2 | ) | (3 | ) | — | 6 | 10 | 1 | (3 | ) | ||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | (1 | ) | 2 | 3 | — | — | 2 | 1 | (2 | ) | ||||||||||||||
Net earnings attributable to Mosaic | $ | (10 | ) | $ | 39 | $ | 12 | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | |||||
After tax Notable items included in earnings | $ | (33 | ) | $ | (105 | ) | $ | (80 | ) | $ | (11 | ) | $ | (5 | ) | $ | 79 | $ | (550 | ) | $ | (35 | ) | |
Gross Margin Rate | 9 | % | 11 | % | 11 | % | 8 | % | 11 | % | 12 | % | 13 | % | 13 | % | ||||||||
Effective Tax Rate (including discrete tax) | (136 | )% | (245 | )% | (47 | )% | 112 | % | (33 | )% | 7 | % | 828 | % | 714 | % | ||||||||
Discrete Tax benefit (expense) | $ | (5 | ) | $ | 2 | $ | (7 | ) | $ | (9 | ) | $ | 16 | $ | 5 | $ | (463 | ) | $ | 48 | ||||
Consolidated Depreciation, Depletion and Amortization | $ | 189 | $ | 173 | $ | 165 | $ | 159 | $ | 166 | $ | 169 | $ | 172 | $ | 217 | ||||||||
Consolidated EBITDA(b) | $ | 202 | $ | 208 | $ | 199 | $ | 193 | $ | 277 | $ | 451 | $ | 271 | $ | 257 | ||||||||
Notable items included in Consolidated EBITDA | $ | (29 | ) | $ | (104 | ) | $ | (78 | ) | $ | (1 | ) | $ | (12 | ) | $ | 93 | $ | (95 | ) | $ | (115 | ) | |
Adjusted EBITDA | $ | 231 | $ | 312 | $ | 277 | $ | 194 | $ | 289 | $ | 358 | $ | 366 | $ | 372 | ||||||||
Net cash provided by operating activities | $ | 584 | $ | 90 | $ | 323 | $ | 146 | $ | 243 | $ | 136 | $ | 411 | $ | (71 | ) | |||||||
Cash paid for interest (net of amount capitalized) | 60 | 3 | 58 | 8 | 67 | 24 | 57 | 11 | ||||||||||||||||
Cash paid for income taxes (net of refunds) | 19 | (50 | ) | (41 | ) | — | (9 | ) | (8 | ) | (53 | ) | 13 | |||||||||||
Net cash used in investing activities | $ | (351 | ) | $ | (978 | ) | $ | (264 | ) | $ | (245 | ) | $ | (177 | ) | $ | (221 | ) | $ | (25 | ) | $ | (1,220 | ) |
Capital expenditures | $ | (202 | ) | $ | (196 | ) | $ | (209 | ) | $ | (224 | ) | $ | (169 | ) | $ | (198 | ) | $ | (230 | ) | $ | (223 | ) |
Net cash (used in) provided by financing activities | $ | (243 | ) | $ | (112 | ) | $ | (255 | ) | $ | 102 | $ | (85 | ) | $ | 94 | $ | 1,090 | $ | (213 | ) | |||
Cash dividends paid | (96 | ) | (96 | ) | (96 | ) | (96 | ) | (53 | ) | (53 | ) | (9 | ) | (10 | ) | ||||||||
Effect of exchange rate changes on cash | 17 | (8 | ) | (12 | ) | 3 | 2 | 18 | (8 | ) | 13 | |||||||||||||
Net change in cash and cash equivalents | $ | 7 | $ | (1,007 | ) | $ | (208 | ) | $ | 6 | $ | (18 | ) | $ | 27 | $ | 1,468 | $ | (1,491 | ) | ||||
Short-term debt | $ | 54 | $ | 54 | $ | — | $ | 124 | $ | 65 | $ | 59 | $ | 6 | $ | 72 | ||||||||
Long-term debt (including current portion) | 3,815 | 3,823 | 3,818 | 3,828 | 3,843 | 3,856 | 5,222 | 5,074 | ||||||||||||||||
Cash & cash equivalents | 1,059 | 654 | 673 | 675 | 661 | 686 | 2,154 | 659 | ||||||||||||||||
Net debt | $ | 2,810 | $ | 3,223 | $ | 3,145 | $ | 3,276 | $ | 3,247 | $ | 3,229 | $ | 3,074 | $ | 4,487 | ||||||||
Segment Contributions (in millions) | ||||||||||||||||||||||||
Potash | $ | 457 | $ | 428 | $ | 407 | $ | 414 | $ | 468 | $ | 474 | $ | 496 | $ | 404 | ||||||||
Phosphates | 976 | 930 | 896 | 839 | 975 | 779 | 997 | 866 | ||||||||||||||||
Mosaic Fertilizantes | 447 | 740 | 521 | 427 | 467 | 806 | 520 | 665 | ||||||||||||||||
Corporate and Other(c) | (206 | ) | (146 | ) | 38 | (102 | ) | (155 | ) | (74 | ) | 79 | (1 | ) | ||||||||||
Total net sales | $ | 1,675 | $ | 1,952 | $ | 1,862 | $ | 1,578 | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | ||||||||
Potash | $ | 18 | $ | 7 | $ | 28 | $ | 36 | $ | 85 | $ | 77 | $ | 83 | $ | 74 | ||||||||
Phosphates | 12 | 6 | 12 | 17 | 30 | 88 | 57 | 60 | ||||||||||||||||
Mosaic Fertilizantes | (11 | ) | 50 | 39 | 11 | 21 | 46 | 10 | 9 | |||||||||||||||
Corporate and Other(c) | (7 | ) | 7 | (5 | ) | (34 | ) | (42 | ) | 3 | (23 | ) | (62 | ) | ||||||||||
Consolidated operating earnings | $ | 12 | $ | 70 | $ | 74 | $ | 30 | $ | 95 | $ | 214 | $ | 127 | $ | 81 | ||||||||
Potash(d) | 2,040 | 2,208 | 1,984 | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | ||||||||||||||||
Phosphates(d) | 2,449 | 2,521 | 2,504 | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | ||||||||||||||||
Mosaic Fertilizantes | 1,194 | 1,922 | 1,446 | 646 | 1,300 | 2,178 | 1,399 | 1,584 | ||||||||||||||||
Corporate and Other | 219 | 290 | 463 | 689 | 319 | 333 | 497 | 266 | ||||||||||||||||
Total finished product tonnes sold ('000 tonnes) | 5,902 | 6,941 | 6,397 | 5,580 | 6,392 | 6,840 | 6,609 | 5,485 | ||||||||||||||||
Percent specialty(p) | 19 | % | 18 | % | 19 | % | 19 | % | 22 | % | 21 | % | 18 | % | 22 | % |
Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 457 | $ | 428 | $ | 407 | $ | 414 | $ | 468 | $ | 474 | $ | 496 | $ | 404 | ||||||||
Cost of Goods Sold | 404 | 388 | 341 | 345 | 358 | 376 | 383 | 301 | ||||||||||||||||
Gross Margin | $ | 53 | $ | 40 | $ | 66 | $ | 69 | $ | 110 | $ | 99 | $ | 114 | $ | 103 | ||||||||
Notable Items Included in Gross Margin | — | — | — | (3 | ) | — | (10 | ) | — | (5 | ) | |||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 53 | $ | 40 | $ | 66 | $ | 72 | $ | 110 | $ | 109 | $ | 114 | $ | 108 | ||||||||
SG&A | 29 | 27 | 30 | 28 | 23 | 21 | 24 | 26 | ||||||||||||||||
Other operating (income) expense | 6 | 6 | 8 | 6 | 2 | 1 | 7 | 3 | ||||||||||||||||
Operating Earnings | $ | 18 | $ | 7 | $ | 28 | $ | 36 | $ | 85 | $ | 77 | $ | 83 | $ | 74 | ||||||||
Plus: Depreciation, Depletion and Amortization | 79 | 77 | 77 | 70 | 73 | 73 | 72 | 76 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 3 | (24 | ) | (27 | ) | 8 | 30 | 55 | (13 | ) | (30 | ) | ||||||||||||
Plus: Other Income (Expense) | — | 78 | — | — | — | — | — | — | ||||||||||||||||
Plus: Equity in net earnings (loss) of nonconsolidated companies | (16 | ) | — | — | — | — | — | — | — | |||||||||||||||
EBITDA(g) | $ | 84 | $ | 138 | $ | 78 | $ | 114 | $ | 188 | $ | 205 | $ | 142 | $ | 120 | ||||||||
Notable Items Included in EBITDA | $ | (15 | ) | $ | (26 | ) | $ | (27 | ) | $ | 5 | $ | 30 | $ | 45 | $ | (13 | ) | $ | (35 | ) | |||
Adjusted EBITDA (excluding notables) | $ | 99 | $ | 164 | $ | 105 | $ | 109 | $ | 158 | $ | 160 | $ | 155 | $ | 155 | ||||||||
Capital expenditures | $ | 98 | $ | 99 | $ | 107 | $ | 106 | $ | 61 | $ | 102 | $ | 103 | $ | 104 | ||||||||
Gross Margin $ / tonne of finished product | $ | 26 | $ | 18 | $ | 33 | $ | 35 | $ | 50 | $ | 44 | $ | 51 | $ | 61 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 26 | $ | 18 | $ | 33 | $ | 37 | $ | 50 | $ | 49 | $ | 51 | $ | 64 | ||||||||
Gross margin as a percent of sales | 12 | % | 9 | % | 16 | % | 17 | % | 23 | % | 21 | % | 23 | % | 25 | % | ||||||||
Supplemental Cost Information | ||||||||||||||||||||||||
Canadian resource taxes | $ | 38 | $ | 14 | $ | 31 | $ | 23 | $ | 33 | $ | (5 | ) | $ | 19 | $ | 26 | |||||||
Royalties | 5 | 4 | 5 | 5 | 6 | 52 | 9 | 8 | ||||||||||||||||
Brine inflow expenses | 42 | 38 | 36 | 39 | 38 | 37 | 36 | 39 | ||||||||||||||||
Freight (f) | 79 | 66 | 63 | 69 | 70 | 69 | 80 | 71 | ||||||||||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
MOP | 1,926 | 2,086 | 1,862 | 1,832 | 2,038 | 2,071 | 2,044 | 1,551 | ||||||||||||||||
Specialty(l) | 114 | 122 | 122 | 141 | 153 | 148 | 173 | 139 | ||||||||||||||||
Total Finished Product(d) | 2,040 | 2,208 | 1,984 | 1,973 | 2,191 | 2,219 | 2,217 | 1,690 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 224 | $ | 194 | $ | 205 | $ | 210 | $ | 214 | $ | 214 | $ | 224 | $ | 239 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Production Volume | 1,769 | 1,662 | 2,147 | 2,048 | 2,302 | 2,151 | 2,149 | 2,275 | ||||||||||||||||
Operating Rate | 67 | % | 63 | % | 82 | % | 83 | % | 93 | % | 87 | % | 87 | % | 87 | % | ||||||||
MOP cash costs of production including brine / production tonne(q) | $ | 96 | $ | 94 | $ | 74 | $ | 86 | $ | 77 | $ | 101 | $ | 87 | $ | 86 | ||||||||
MOP cash costs of brine management / production tonne | $ | 24 | $ | 23 | $ | 17 | $ | 19 | $ | 17 | $ | 17 | $ | 17 | $ | 17 | ||||||||
Average CAD / USD | $ | 1.289 | $ | 1.304 | $ | 1.335 | $ | 1.323 | $ | 1.345 | $ | 1.253 | $ | 1.27 | $ | 1.264 |
Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 976 | $ | 930 | $ | 896 | $ | 839 | $ | 975 | $ | 779 | $ | 997 | $ | 866 | ||||||||
Cost of Goods Sold | 876 | 829 | 812 | 783 | 898 | 712 | 864 | 769 | ||||||||||||||||
Gross Margin | $ | 100 | $ | 101 | $ | 84 | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 97 | ||||||||
Notable Items Included in Gross Margin | — | — | 9 | — | — | — | — | (15 | ) | |||||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 100 | $ | 101 | $ | 75 | $ | 56 | $ | 76 | $ | 67 | $ | 133 | $ | 112 | ||||||||
SG&A | 34 | 30 | 30 | 30 | 29 | 25 | 29 | 31 | ||||||||||||||||
Other operating (income) expense | 54 | 65 | 42 | 9 | 18 | (47 | ) | 47 | 6 | |||||||||||||||
Operating Earnings | $ | 12 | $ | 6 | $ | 12 | $ | 17 | $ | 30 | $ | 88 | $ | 57 | $ | 60 | ||||||||
Plus: Depreciation, Depletion and Amortization | 101 | 84 | 78 | 80 | 83 | 86 | 89 | 99 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | — | 2 | 4 | (2 | ) | (4 | ) | (6 | ) | 1 | 4 | |||||||||||||
Plus: Other Income (Expense) | — | — | (10 | ) | (2 | ) | 2 | 1 | (1 | ) | (5 | ) | ||||||||||||
Plus: Equity in net earnings (loss) of nonconsolidated companies | 2 | (2 | ) | (3 | ) | — | 5 | 10 | 1 | (4 | ) | |||||||||||||
Plus: Earnings (loss) from Consolidated Noncontrolling Interests | 2 | 2 | 4 | 2 | (2 | ) | — | 2 | (1 | ) | ||||||||||||||
EBITDA(g) | $ | 113 | $ | 88 | $ | 77 | $ | 91 | $ | 118 | $ | 179 | $ | 144 | $ | 155 | ||||||||
Notable Items Included in EBITDA | $ | (49 | ) | $ | (60 | ) | $ | (33 | ) | $ | (5 | ) | $ | (23 | ) | $ | 43 | $ | (38 | ) | $ | (16 | ) | |
Adjusted EBITDA (excluding notables) | $ | 162 | $ | 148 | $ | 110 | $ | 96 | $ | 141 | $ | 136 | $ | 182 | $ | 171 | ||||||||
Capital expenditures | $ | 90 | $ | 89 | $ | 89 | $ | 103 | $ | 101 | $ | 87 | $ | 110 | $ | 100 | ||||||||
Gross Margin $ / tonne of finished product | $ | 41 | $ | 40 | $ | 34 | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 49 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 41 | $ | 40 | $ | 30 | $ | 25 | $ | 29 | $ | 32 | $ | 53 | $ | 57 | ||||||||
Gross margin as a percent of sales | 10 | % | 11 | % | 9 | % | 7 | % | 8 | % | 9 | % | 13 | % | 11 | % | ||||||||
Freight included in finished goods (in millions) | $ | 87 | $ | 86 | $ | 91 | $ | 79 | $ | 103 | $ | 78 | $ | 107 | $ | 77 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
DAP/MAP | 1,760 | 1,715 | 1,763 | 1,486 | 1,706 | 1,483 | 1,663 | 1,295 | ||||||||||||||||
Specialty(k) | 689 | 806 | 741 | 786 | 876 | 627 | 833 | 650 | ||||||||||||||||
Total Finished Product(d) | 2,449 | 2,521 | 2,504 | 2,272 | 2,582 | 2,110 | 2,496 | 1,945 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 399 | $ | 369 | $ | 358 | $ | 369 | $ | 377 | $ | 369 | $ | 399 | $ | 431 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(h) | 2,391 | 2,461 | 2,463 | 2,303 | 2,461 | 2,339 | 2,322 | 2,045 | ||||||||||||||||
Operating Rate(n) | 82 | % | 84 | % | 84 | % | 79 | % | 84 | % | 80 | % | 79 | % | 84 | % | ||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||
Ammonia (tonne)(i) | $ | 320 | $ | 287 | $ | 259 | $ | 285 | $ | 373 | $ | 283 | $ | 298 | $ | 344 | ||||||||
Sulfur (long ton)(j) | $ | 112 | $ | 93 | $ | 87 | $ | 87 | $ | 90 | $ | 88 | $ | 97 | $ | 128 | ||||||||
Blended rock | $ | 65 | $ | 60 | $ | 58 | $ | 59 | $ | 58 | $ | 63 | $ | 55 | $ | 55 | ||||||||
Cash conversion costs / finished product tonne | $ | 65 | $ | 62 | $ | 65 | $ | 79 | $ | 67 | $ | 68 | $ | 70 | $ | 68 | ||||||||
Cash rock costs consumed / tonne | $ | 41 | $ | 42 | $ | 40 | $ | 40 | $ | 40 | $ | 40 | $ | 35 | $ | 35 | ||||||||
Phosphate Rock | ||||||||||||||||||||||||
Sales Volumes ('000 tonnes) (m) | $ | 360 | ||||||||||||||||||||||
Average rock selling price (destination) (o) | $ | 79 | ||||||||||||||||||||||
Gross margin $ / rock tonne | $ | 4 | ||||||||||||||||||||||
Freight included in rock (in millions) | $ | 8 |
Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 447 | $ | 740 | $ | 521 | $ | 427 | $ | 467 | $ | 806 | $ | 520 | $ | 665 | ||||||||
Cost of Goods Sold | 447 | 676 | 475 | 409 | 442 | 754 | 487 | 606 | ||||||||||||||||
Gross Margin | $ | 1 | $ | 65 | $ | 46 | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | ||||||||
Notable Items Included in Gross Margin | — | — | — | — | — | — | — | — | ||||||||||||||||
Adjusted Gross Margin (excluding notables) | $ | 1 | $ | 65 | $ | 46 | $ | 18 | $ | 25 | $ | 52 | $ | 32 | $ | 59 | ||||||||
SG&A | 14 | 17 | 16 | 15 | 17 | 18 | 22 | 25 | ||||||||||||||||
Other operating (income) expense | — | 1 | — | (1 | ) | (2 | ) | (3 | ) | 1 | 25 | |||||||||||||
Operating Earnings | $ | (13 | ) | $ | 47 | $ | 30 | $ | 5 | $ | 11 | $ | 38 | $ | 10 | $ | 9 | |||||||
Plus: Depreciation, Depletion and Amortization | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 37 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 12 | (10 | ) | (5 | ) | (1 | ) | (18 | ) | 14 | (19 | ) | (5 | ) | ||||||||||
Plus: Other Income (Expense) | — | — | (2 | ) | (3 | ) | (1 | ) | 1 | (1 | ) | — | ||||||||||||
Plus: Earnings from Consolidated Noncontrolling Interests | — | 2 | 1 | 1 | — | 2 | 1 | — | ||||||||||||||||
EBITDA(g) | $ | 3 | $ | 40 | $ | 26 | $ | 5 | $ | (4 | ) | $ | 55 | $ | (6 | ) | $ | 41 | ||||||
Notable Items Included in EBITDA | $ | 12 | $ | (10 | ) | $ | (5 | ) | $ | (1 | ) | $ | (18 | ) | $ | 14 | $ | (19 | ) | $ | (21 | ) | ||
Adjusted EBITDA (excluding notables) | $ | (9 | ) | $ | 50 | $ | 31 | $ | 5 | $ | 14 | $ | 40 | $ | 13 | $ | 62 | |||||||
Capital expenditures | $ | 7 | $ | 5 | $ | 7 | $ | 8 | $ | 5 | $ | 4 | $ | 16 | $ | 18 | ||||||||
Gross Margin $ / tonne of finished product | $ | 1 | $ | 34 | $ | 32 | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 1 | $ | 34 | $ | 32 | $ | 16 | $ | 19 | $ | 24 | $ | 23 | $ | 37 | ||||||||
Gross margin as a percent of sales | — | % | 9 | % | 9 | % | 4 | % | 5 | % | 6 | % | 6 | % | 9 | % | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
Phosphate produced in Brazil | 60 | 81 | 79 | 50 | 82 | 85 | 85 | 427 | ||||||||||||||||
Potash produced in Brazil | 99 | |||||||||||||||||||||||
Purchased nutrients | 1,134 | 1,841 | 1,367 | 1,089 | 1,218 | 2,093 | 1,314 | 1,058 | ||||||||||||||||
Total Finished Product(d) | 1,194 | 1,922 | 1,446 | 1,139 | 1,300 | 2,178 | 1,399 | 1,584 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 375 | $ | 385 | $ | 360 | $ | 375 | $ | 359 | $ | 370 | $ | 372 | $ | 420 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(h) | 987 | |||||||||||||||||||||||
Operating Rate(n) | 81 | % | ||||||||||||||||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 343 | 195 | 175 | 169 | 176 | 164 | 150 | 70 | ||||||||||||||||
MicroEssentials® from Mosaic | 303 | 293 | 120 | 314 | 365 | 178 | 55 | 182 | ||||||||||||||||
Potash from Mosaic/Canpotex | 701 | 435 | 284 | 408 | 868 | 451 | 346 | 389 | ||||||||||||||||
Average BRL / USD | $ | 3.512 | $ | 3.244 | $ | 3.298 | $ | 3.144 | $ | 3.215 | $ | 3.168 | $ | 3.308 | $ | 3.246 |
Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | |||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | (206 | ) | $ | (146 | ) | $ | 39 | $ | (102 | ) | $ | (155 | ) | $ | (74 | ) | $ | 79 | $ | (1 | ) | ||
Cost of Goods Sold | (206 | ) | (154 | ) | 28 | (88 | ) | (136 | ) | (98 | ) | 78 | 15 | |||||||||||
Gross Margin (Loss) | $ | — | $ | 8 | $ | 11 | $ | (15 | ) | $ | (19 | ) | $ | 23 | $ | 1 | $ | (16 | ) | |||||
Notable items Included in Gross Margin | 30 | (8 | ) | (4 | ) | (1 | ) | 3 | 2 | (17 | ) | (12 | ) | |||||||||||
Adjusted Gross Margin (Loss) (excluding notables) | $ | (30 | ) | $ | 16 | $ | 15 | $ | (14 | ) | $ | (22 | ) | $ | 21 | $ | 18 | $ | (4 | ) | ||||
SG&A | (4 | ) | (8 | ) | (1 | ) | 8 | 3 | 3 | 9 | 12 | |||||||||||||
Other operating (income) expense | 9 | 6 | 9 | 4 | 9 | 9 | 15 | 34 | ||||||||||||||||
Operating Earnings (Loss) | $ | (5 | ) | $ | 9 | $ | 3 | $ | (27 | ) | $ | (31 | ) | $ | 11 | $ | (23 | ) | $ | (62 | ) | |||
Plus: Depreciation, Depletion and Amortization | 5 | 8 | 6 | 5 | 6 | 5 | 7 | 5 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | — | (1 | ) | (2 | ) | 3 | 1 | (5 | ) | 5 | (1 | ) | ||||||||||||
Plus: Other (Expense) | — | (78 | ) | 7 | — | — | — | — | (2 | ) | ||||||||||||||
Less: Earnings (Loss) from Consolidated Noncontrolling Interests | (2 | ) | (3 | ) | (3 | ) | (3 | ) | 2 | — | (2 | ) | (1 | ) | ||||||||||
EBITDA(i) | $ | 2 | $ | (59 | ) | $ | 17 | $ | (16 | ) | $ | (26 | ) | $ | 11 | $ | (9 | ) | $ | (59 | ) | |||
Notable Items Included in EBITDA | 30 | (9 | ) | (6 | ) | 2 | 4 | (7 | ) | (25 | ) | (43 | ) | |||||||||||
Adjusted EBITDA (excluding notables) | $ | (28 | ) | $ | (50 | ) | $ | 23 | $ | (18 | ) | $ | (30 | ) | $ | 18 | $ | 16 | $ | (16 | ) | |||
Elimination of profit in inventory income (loss) included in COGS | $ | (25 | ) | $ | 20 | $ | 12 | $ | (19 | ) | $ | (28 | ) | $ | 20 | $ | (18 | ) | $ | (8 | ) | |||
Unrealized gain (loss) on derivatives included in COGS | $ | 30 | $ | (8 | ) | $ | (4 | ) | $ | (1 | ) | $ | 3 | $ | 2 | $ | (17 | ) | $ | (12 | ) | |||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 219 | 290 | 463 | 196 | 319 | 333 | 497 | 266 | ||||||||||||||||
Average finished product selling price (destination)(e) | $ | 394 | $ | 372 | $ | 354 | $ | 305 | $ | 323 | $ | 373 | $ | 387 | $ | 333 | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 162 | 201 | 44 | — | 232 | 222 | 50 | — | ||||||||||||||||
MicroEssentials® from Mosaic | — | 10 | 53 | — | — | — | 68 | — | ||||||||||||||||
Potash from Mosaic/Canpotex | 121 | 38 | 81 | 242 | 86 | 147 | 198 | 240 |
Q1 2018 | ||||||||||||||
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 | ) | $ | 9 | $ | (0.06 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (12 | ) | 3 | (0.02 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (18 | ) | 5 | (0.03 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (8 | ) | 2 | (0.02 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (16 | ) | 5 | (0.03 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (5 | ) | 2 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (15 | ) | 4 | (0.03 | ) | |||||||
Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Severance | Corporate and Other | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 48 | 0.13 | |||||||||
Total Notable Items | $ | (115 | ) | $ | 80 | $ | (0.09 | ) |
Q4 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (27 | ) | $ | 2 | $ | (0.07 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (17 | ) | 1 | (0.05 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (12 | ) | — | (0.04 | ) | |||||||
Discrete tax items relating to changes in US tax laws | Consolidated | (Provision for) benefit from income taxes | — | (456 | ) | (1.30 | ) | |||||||
Other discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | — | ||||||||
Restructuring | Phosphates | Other operating income (expense) | (20 | ) | 2 | (0.05 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (11 | ) | 1 | (0.03 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (8 | ) | 1 | (0.02 | ) | |||||||
Resolution of royalty matter | Potash | Cost of goods sold | — | 2 | 0.01 | |||||||||
Total Notable Items | $ | (97 | ) | $ | (454 | ) | $ | (1.57 | ) |
Q3 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 58 | $ | — | $ | 0.17 | ||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (6 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 5 | 0.01 | |||||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | (0.01 | ) | |||||||
Gain on sale of land | Phosphates | Other operating income (expense) | 52 | — | 0.15 | |||||||||
Resolution of royalties with Saskatchewan government | Potash | Cost of goods sold | (10 | ) | (17 | ) | (0.08 | ) | ||||||
Asset write-off | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | 91 | $ | (12 | ) | $ | 0.22 |
Q2 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(u) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | 1 | $ | 0.03 | ||||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 3 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate & Other | Other operating income (expense) | (5 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 16 | 0.04 | |||||||||
Pre-issuance hedging loss | Consolidated | Interest Expense | (8 | ) | (1 | ) | (0.02 | ) | ||||||
Water loss expense | Phosphates | Other operating income (expense) | (14 | ) | (1 | ) | (0.04 | ) | ||||||
Miski Mayo | Phosphates | Equity in net earnings (loss) of nonconsolidated companies | (5 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (20 | ) | $ | 15 | $ | (0.01 | ) |
Q1 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(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 assets | Corporate & Other | Other operating expense | (3 | ) | — | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (9 | ) | (0.03 | ) | |||||||
Liquidated damages for CF ammonia agreement | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Resolution of Canadian tax audit | Potash | Cost of goods sold | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (1 | ) | $ | (10 | ) | $ | (0.04 | ) |
Q4 2016 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(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 | ) |
(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) | The Company defines Consolidated EBITDA, a Non-GAAP measure, as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization and provision for/(benefit) from income taxes, as further described in "Non-GAAP Reconciliations". |
(c) | Includes elimination of intersegment sales. |
(d) | Finished product sales volumes include intersegment sales. |
(e) | Average price of all finished products sold by Phosphates, Potash, Mosaic Fertilizantes and India/China. |
(f) | Includes inbound freight, outbound freight and warehousing costs on K-Mag, Feed and domestic MOP sales. |
(g) | The Company defines segment EBITDA as the related segment's operating earnings (loss) plus depreciation, depletion and amortization plus foreign exchange gain (loss) plus other income (expense) plus equity earnings (loss) less equity earnings (loss) from noncontrolling interests. 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." |
(h) | Includes crop nutrient dry concentrates and animal feed ingredients. |
(i) | Amounts are representative of our average ammonia costs in cost of goods sold. |
(j) | Amounts are representative of our average sulfur cost in cost of goods sold. |
(k) | Includes MicroEssentials and animal feed finished specialty products. |
(l) | Includes K-Mag and animal feed finished specialty products. |
(m) | Sales volumes of rock related to external rock sales only. |
(n) | Starting in Q1 2018, Plant City was excluded from operational capacity. |
(o) | Average selling price of all rock sold. |
(p) | Includes MicroEssentials, K-Mag and animal feed finished specialty products. |
(q) | MOP production cash costs including brine are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. |
(in millions) | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | ||||||||||||||||||||||||
Consolidated Net Income (Loss) | $ | (10 | ) | $ | 39 | $ | 12 | $ | (1 | ) | $ | 97 | $ | 228 | $ | (431.1 | ) | $ | 42 | |||||||||||||
Less: Consolidated Interest Expense, Net | (33 | ) | (26 | ) | (27 | ) | (26 | ) | (36 | ) | (36 | ) | (40 | ) | (49 | ) | ||||||||||||||||
Plus: Consolidated Depreciation, Depletion & Amortization | 189 | 173 | 165 | 159 | 166 | 169 | 172 | 217 | ||||||||||||||||||||||||
Plus: Consolidated Provision for (Benefit from) Income Taxes | (10 | ) | (30 | ) | (5 | ) | 10 | (23 | ) | 18 | 490 | (50 | ) | |||||||||||||||||||
Consolidated EBITDA | 202 | 208 | 199 | 194 | 276 | 451 | 271 | 257 |
(in millions, except sales tonnes) | Q2 2016 | Q3 2016 | Q4 2016 | Q1 2017 | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | ||||||||||||||||||||||||
Potash Cost of Goods Sold | $ | 404 | $ | 388 | $ | 341 | $ | 345 | $ | 358 | $ | 376 | $ | 383 | $ | 301 | ||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Freight included in revenue & cost of goods sold() | 79 | 66 | 63 | 69 | 70 | 69 | 80 | 71 | ||||||||||||||||||||||||
Canadian resource taxes | 38 | 14 | 31 | 23 | 33 | (5 | ) | 19 | 26 | |||||||||||||||||||||||
Royalties | 5 | 4 | 5 | 5 | 6 | 52 | 9 | 8 | ||||||||||||||||||||||||
Potash Depreciation, Depletion & Amortization | 79 | 77 | 77 | 70 | 73 | 73 | 72 | 76 | ||||||||||||||||||||||||
Cash Cost of Goods Sold | $ | 203 | $ | 227 | $ | 165 | $ | 177 | $ | 176 | $ | 187 | $ | 203 | $ | 120 | ||||||||||||||||
Sales tonnes (in thousands of mt) | 1,769 | 1,662 | 2,147 | 2,048 | 2,302 | 2,151 | 2,149 | 2,275 | ||||||||||||||||||||||||
Cash COGS/sales tonne | $ | 96 | $ | 94 | $ | 74 | $ | 86 | $ | 77 | $ | 101 | $ | 87 | $ | 86 |
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