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 6, 2019 | 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 |
• | Mosaic reported first quarter 2019 net earnings of $131 million compared to $42 million last year, and diluted earnings per share (EPS) of $0.34 compared to $0.11 last year, both on revenues of $1.9 billion. |
• | For the period, adjusted EBITDA(1) was $430 million compared to $399 million in the prior year period, and EPS(1) was $0.25 compared to $0.20 in the prior year period. |
◦ | Notable items in the quarter primarily related to foreign currency transaction gain, unrealized gain on derivatives, and gain due to fair value adjustment of the earnout liability related to the acquisition of Vale Fertilizantes. |
◦ | In the quarter, higher costs impacted all of Mosaic’s businesses, including costs associated with impacts of weather in North America and regulatory changes in Brazil. Combined, costs related to maintenance and down time negatively impacted gross margin by $77 million, including $9 million the company designated a notable item, compared to $37 million in the prior year period. These costs negatively impacted first quarter 2019 EPS by $0.15 per share and adjusted EPS by $0.13 per share. |
• | The Company revised its full-year adjusted EBITDA(1) guidance to $2.0 to $2.3 billion, and adjusted EPS(1) guidance to $1.50 to $2.00, primarily reflecting the impact of curtailments and higher costs associated with the impact of new tailings dam regulations in Brazil, the increase in Canadian resource taxes, and delayed recovery in phosphate margins. EPS guidance was also impacted by an increase in the estimated full year effective tax rate. |
(1) | See “Non-GAAP Financial Measures” for additional information and reconciliation. |
Phosphates Results* | 1Q 2019 | 4Q 2018 | 1Q 2018 |
Sales Volumes million tonnes | 1.8 | 1.9 | 1.9 |
Gross Margin (GAAP) per tonne | $31 | $81 | $49 |
Adjusted Gross Margin (non-GAAP) per tonne(1) | $36 | $81 | $57 |
(1) | See “Non-GAAP Financial Measures” for additional information and reconciliation. |
Potash Results | 1Q 2019 | 4Q 2018 | 1Q 2018 |
Sales Volumes million tonnes | 1.9 | 2.3 | 1.7 |
Gross Margin (GAAP) per tonne | $100 | $88 | $61 |
Adjusted Gross Margin (non-GAAP) per tonne(1) | $100 | $88 | $64 |
Mosaic Fertilizantes Results* | 1Q 2019 | 4Q 2018 | 1Q 2018 |
Sales Volumes million tonnes | 1.5 | 2.1 | 1.6 |
Gross Margin (GAAP) per tonne | $34 | $56 | $37 |
Adjusted Gross Margin (non GAAP) per tonne(1) | $34 | $56 | $37 |
$ in billions except per share | 2019 Guidance | Reported YTD 3/31/2019 |
Adjusted EBITDA(1) | $2.0 - $2.3 | $0.430 |
Adjusted earnings per share(1) | $1.50 - $2.00 | $0.25 |
Capital Expenditures | ~$1.2 | $0.314 |
In Millions* | Full-Year 2019 Assumptions | Reported YTD 3/31/2019 |
Potash tonnes sold | 9.0 - 9.4 | 1.9 |
Phosphates tonnes sold | 8.6 - 9.0 | 1.8 |
Mosaic Fertilizantes tonnes sold | 9.4 - 9.8 | 1.5 |
SG&A Expenses | ~ $350 | $94 |
Sales Volumes millions of tonnes* | Adjusted Gross Margin(1) | |
Potash | 2.3 - 2.6 | $70 - $80 per tonne |
Phosphates | 2.3 - 2.6 | $40 - $50 per tonne |
Mosaic Fertilizantes | 2.0 - 2.3 | $15 - $25 per tonne |
Corporate and Other | $(5) - $(15) million |
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) | $ | 23 | $ | (6 | ) | $ | 0.05 | |||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 25 | (7 | ) | 0.05 | ||||||||||
Louisiana gypstack costs | Phosphates | Cost of goods sold | (9 | ) | 2 | (0.02 | ) | |||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (3 | ) | 1 | (0.01 | ) | |||||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | 11 | — | 0.03 | |||||||||||
Total Notable Items | $ | 42 | $ | (9 | ) | $ | 0.09 |
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 | ) |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net sales | $ | 1,899.7 | $ | 1,933.7 | ||||
Cost of goods sold | 1,590.2 | 1,691.6 | ||||||
Gross margin | 309.5 | 242.1 | ||||||
Selling, general and administrative expenses | 93.5 | 93.6 | ||||||
Other operating expense | 13.9 | 67.8 | ||||||
Operating earnings | 202.1 | 80.7 | ||||||
Interest expense, net | (47.0 | ) | (49.4 | ) | ||||
Foreign currency transaction gain (loss) | 22.6 | (32.2 | ) | |||||
Other expense | (1.1 | ) | (5.6 | ) | ||||
Earnings (loss) from consolidated companies before income taxes | 176.6 | (6.5 | ) | |||||
Provision for (benefit from) income taxes | 46.6 | (49.9 | ) | |||||
Earnings from consolidated companies | 130.0 | 43.4 | ||||||
Equity in net loss of nonconsolidated companies | (0.1 | ) | (3.3 | ) | ||||
Net earnings including noncontrolling interests | 129.9 | 40.1 | ||||||
Less: Net loss attributable to noncontrolling interests | (0.9 | ) | (2.2 | ) | ||||
Net earnings attributable to Mosaic | $ | 130.8 | $ | 42.3 | ||||
Diluted net earnings per share attributable to Mosaic | $ | 0.34 | $ | 0.11 | ||||
Diluted weighted average number of shares outstanding | 387.4 | 384.1 |
The Mosaic Company | (unaudited) |
March 31, 2019 | December 31, 2018 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 384.6 | $ | 847.7 | ||||
Receivables, net | 792.0 | 838.5 | ||||||
Inventories | 2,572.1 | 2,270.2 | ||||||
Other current assets | 397.6 | 280.6 | ||||||
Total current assets | 4,146.3 | 4,237.0 | ||||||
Property, plant and equipment, net | 11,942.7 | 11,746.5 | ||||||
Investments in nonconsolidated companies | 823.3 | 826.6 | ||||||
Goodwill | 1,726.8 | 1,707.5 | ||||||
Deferred income taxes | 345.9 | 343.8 | ||||||
Other assets | 1,460.3 | 1,257.8 | ||||||
Total assets | $ | 20,445.3 | $ | 20,119.2 | ||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Short-term debt | $ | 167.5 | $ | 11.5 | ||||
Current maturities of long-term debt | 40.8 | 26.0 | ||||||
Structured accounts payable arrangements | 466.9 | 572.8 | ||||||
Accounts payable | 781.6 | 780.9 | ||||||
Accrued liabilities | 940.4 | 1,092.5 | ||||||
Total current liabilities | 2,397.2 | 2,483.7 | ||||||
Long-term debt, less current maturities | 4,533.0 | 4,491.5 | ||||||
Deferred income taxes | 1,122.4 | 1,080.6 | ||||||
Other noncurrent liabilities | 1,585.2 | 1,458.7 | ||||||
Equity: | ||||||||
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2019 and December 31, 2018 | — | — | ||||||
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 389,560,531 shares issued and 385,788,256 shares outstanding as of March 31, 2019, 389,242,360 shares issued and 385,470,085 shares outstanding as of December 31, 2018 | 3.8 | 3.8 | ||||||
Capital in excess of par value | 996.2 | 985.9 | ||||||
Retained earnings | 11,196.8 | 11,064.7 | ||||||
Accumulated other comprehensive loss | (1,595.6 | ) | (1,657.1 | ) | ||||
Total Mosaic stockholders' equity | 10,601.2 | 10,397.3 | ||||||
Noncontrolling interests | 206.3 | 207.4 | ||||||
Total equity | 10,807.5 | 10,604.7 | ||||||
Total liabilities and equity | $ | 20,445.3 | $ | 20,119.2 |
The Mosaic Company | (unaudited) |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net cash used in operating activities | $ | (175.5 | ) | $ | (71.0 | ) | ||
Cash Flows from Investing Activities: | ||||||||
Capital expenditures | (313.9 | ) | (223.3 | ) | ||||
Purchases of available-for-sale securities - restricted | (186.9 | ) | (185.7 | ) | ||||
Proceeds from sale of available-for-sale securities - restricted | 182.3 | 184.0 | ||||||
Investments in consolidated affiliate | — | 1.3 | ||||||
Acquisition, net of cash acquired | — | (994.6 | ) | |||||
Held-to-Maturity securities - purchases | (13.0 | ) | — | |||||
Held-to-Maturity securities - proceeds | 2.3 | — | ||||||
Other | 0.3 | (2.1 | ) | |||||
Net cash used in investing activities | (328.9 | ) | (1,220.4 | ) | ||||
Cash Flows from Financing Activities: | ||||||||
Payments of short-term debt | (53.7 | ) | — | |||||
Proceeds from issuance of short-term debt | 206.0 | 65.3 | ||||||
Payments of structured accounts payable arrangements | (319.7 | ) | (235.7 | ) | ||||
Proceeds from structured accounts payable arrangements | 209.5 | 173.8 | ||||||
Payments of long-term debt | (10.1 | ) | (206.9 | ) | ||||
Cash dividends paid | (9.6 | ) | (9.6 | ) | ||||
Other | (0.1 | ) | (0.2 | ) | ||||
Net cash provided by (used in) financing activities | 22.3 | (213.3 | ) | |||||
Effect of exchange rate changes on cash | 13.5 | 13.4 | ||||||
Net change in cash, cash equivalents and restricted cash | (468.6 | ) | (1,491.3 | ) | ||||
Cash, cash equivalents and restricted cash - beginning of period | 871.0 | 2,194.4 | ||||||
Cash, cash equivalents and restricted cash - end of period | $ | 402.4 | $ | 703.1 |
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited condensed consolidated statements of cash flows: | ||||||||||
Cash and cash equivalents | $ | 384.6 | $ | 659.4 | ||||||
Restricted cash in other current assets | 8.8 | 9.4 | ||||||||
Restricted cash in other assets | 9.0 | 34.3 | ||||||||
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statement of cash flows | $ | 402.4 | $ | 703.1 | ||||||
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Net earnings attributable to Mosaic | $ | 130.8 | $ | 42.3 | ||||
Basic weighted average number of shares outstanding | 385.5 | 382.6 | ||||||
Dilutive impact of share-based awards | 1.9 | 1.5 | ||||||
Diluted weighted average number of shares outstanding | 387.4 | 384.1 | ||||||
Basic net earnings per share attributable to Mosaic | $ | 0.34 | $ | 0.11 | ||||
Diluted net earnings per share attributable to Mosaic | $ | 0.34 | $ | 0.11 |
![]() |
Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||||||||||||
Consolidated data (in millions, except per share) | ||||||||||||||||||||||||
Diluted net earnings (loss) per share | $ | 0.28 | $ | 0.65 | $ | (1.23 | ) | $ | 0.11 | $ | 0.18 | $ | 0.64 | $ | 0.29 | $ | 0.34 | |||||||
Notable items impact on earnings per share(a) | (0.01 | ) | 0.22 | (1.57 | ) | (0.09 | ) | (0.22 | ) | (0.11 | ) | (0.48 | ) | 0.09 | ||||||||||
Adjusted diluted net earnings per share(a) | $ | 0.29 | $ | 0.43 | $ | 0.34 | $ | 0.20 | $ | 0.40 | $ | 0.75 | $ | 0.77 | $ | 0.25 | ||||||||
Diluted weighted average # of shares outstanding | 352.0 | 352.2 | 351.0 | 384.1 | 387.2 | 387.5 | 387.6 | 387.4 | ||||||||||||||||
Total Net Sales | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | $ | 2,928 | $ | 2,521 | $ | 1,900 | ||||||||
Cost of goods sold | 1,562 | 1,744 | 1,812 | 1,691 | 1,910 | 2,432 | 2,055 | 1,590 | ||||||||||||||||
Gross Margin | $ | 192 | $ | 241 | $ | 280 | $ | 243 | $ | 295 | $ | 496 | $ | 466 | $ | 310 | ||||||||
SG&A | 71 | 66 | 83 | 94 | 79 | 79 | 90 | 94 | ||||||||||||||||
Other operating expense | 27 | (39 | ) | 70 | 68 | 20 | 24 | 118 | 14 | |||||||||||||||
Operating earnings | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | $ | 393 | $ | 258 | $ | 202 | ||||||||
Interest expense, net | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | (41 | ) | (31 | ) | (47 | ) | ||||||||
Consolidated foreign currency gain/(loss) | 9 | 59 | (27 | ) | (32 | ) | (79 | ) | (2 | ) | (79 | ) | 23 | |||||||||||
Earnings from consolidated companies before income taxes | 69 | 237 | 59 | (7 | ) | 70 | 342 | 145 | 176 | |||||||||||||||
Provision for (benefit from) income taxes | (23 | ) | 18 | 490 | (50 | ) | 4 | 91 | 33 | 46 | ||||||||||||||
Earnings (loss) from consolidated companies | $ | 91 | $ | 220 | $ | (431 | ) | $ | 43 | $ | 66 | $ | 251 | $ | 112 | $ | 130 | |||||||
Equity in net earnings (loss) of nonconsolidated companies | 6 | 10 | 1 | (3 | ) | 2 | (2 | ) | (1 | ) | — | |||||||||||||
Less: Net earnings (loss) attributable to noncontrolling interests | — | 2 | 1 | (2 | ) | — | 2 | (1 | ) | (1 | ) | |||||||||||||
Net earnings (loss) attributable to Mosaic | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | $ | 247 | $ | 112 | $ | 131 | |||||||
After tax Notable items included in earnings | $ | (5 | ) | $ | 79 | $ | (550 | ) | $ | (35 | ) | $ | (86 | ) | $ | (41 | ) | $ | (185 | ) | $ | 33 | ||
Gross Margin Rate | 11 | % | 12 | % | 13 | % | 13 | % | 13 | % | 17 | % | 18 | % | 16 | % | ||||||||
Effective Tax Rate (including discrete tax) | (33 | )% | 7 | % | 828 | % | 714 | % | 5 | % | 26 | % | 23 | % | 26 | % | ||||||||
Discrete Tax benefit (expense) | $ | 16 | $ | 5 | $ | (463 | ) | $ | 48 | $ | 13 | $ | (29 | ) | $ | (33 | ) | $ | — | |||||
Depreciation, Depletion and Amortization | $ | 166 | $ | 169 | $ | 172 | $ | 217 | $ | 217 | $ | 215 | $ | 235 | $ | 218 | ||||||||
Accretion Expense | $ | 6 | $ | 6 | $ | 6 | $ | 12 | $ | 12 | $ | 13 | $ | 11 | $ | 15 | ||||||||
Share-Based Compensation Expense | $ | 5 | $ | 4 | $ | 3 | $ | 15 | $ | 7 | $ | 3 | $ | 2 | $ | 15 | ||||||||
Notable Items | $ | 12 | $ | (93 | ) | $ | 95 | $ | 115 | $ | 128 | $ | 13 | $ | 176 | $ | (42 | ) | ||||||
Adjusted EBITDA(b) | $ | 300 | $ | 368 | $ | 375 | $ | 399 | $ | 480 | $ | 622 | $ | 603 | $ | 430 | ||||||||
Net cash provided by (used in) operating activities | $ | 243 | $ | 136 | $ | 411 | $ | (71 | ) | $ | 807 | $ | 524 | $ | 150 | $ | (176 | ) | ||||||
Cash paid for interest (net of amount capitalized) | 67 | 24 | 57 | 11 | 78 | 9 | 76 | 11 | ||||||||||||||||
Cash paid for income taxes (net of refunds) | (9 | ) | (8 | ) | (53 | ) | 13 | 14 | (13 | ) | (48 | ) | 94 | |||||||||||
Net cash used in investing activities | $ | (177 | ) | $ | (221 | ) | $ | (25 | ) | $ | (1,220 | ) | $ | (197 | ) | $ | (244 | ) | $ | (284 | ) | $ | (329 | ) |
Capital expenditures | (169 | ) | (198 | ) | (230 | ) | (223 | ) | (201 | ) | (241 | ) | (289 | ) | (314 | ) | ||||||||
Net cash (used in) provided by financing activities | $ | (85 | ) | $ | 94 | $ | 1,090 | $ | (213 | ) | $ | (170 | ) | $ | (297 | ) | $ | (45 | ) | $ | 22 | |||
Cash dividends paid | (53 | ) | (53 | ) | (9 | ) | (10 | ) | (10 | ) | (10 | ) | (10 | ) | (10 | ) | ||||||||
Effect of exchange rate changes on cash | $ | 2 | $ | 18 | $ | (8 | ) | $ | 13 | $ | (65 | ) | $ | (11 | ) | $ | (1 | ) | $ | 14 | ||||
Net change in cash and cash equivalents | $ | (18 | ) | $ | 27 | $ | 1,468 | $ | (1,491 | ) | $ | 375 | $ | (28 | ) | $ | (180 | ) | $ | (469 | ) | |||
Short-term debt | $ | 65 | $ | 59 | $ | 6 | $ | 72 | $ | 20 | $ | 26 | $ | 12 | $ | 168 | ||||||||
Long-term debt (including current portion) | 3,843 | 3,856 | 5,222 | 5,074 | 4,998 | 4,584 | 4,518 | 4,574 | ||||||||||||||||
Cash & cash equivalents | 661 | 686 | 2,154 | 659 | 1,035 | 1,030 | 848 | 385 | ||||||||||||||||
Net debt | $ | 3,247 | $ | 3,229 | $ | 3,074 | $ | 4,487 | $ | 3,983 | $ | 3,580 | $ | 3,682 | $ | 4,357 | ||||||||
Segment Contributions (in millions) | ||||||||||||||||||||||||
Phosphates | $ | 975 | $ | 779 | $ | 997 | $ | 866 | $ | 1,053 | $ | 1,041 | $ | 926 | $ | 806 | ||||||||
Potash | 468 | 474 | 496 | 404 | 569 | 609 | 592 | 504 | ||||||||||||||||
Mosaic Fertilizantes | 467 | 806 | 520 | 665 | 713 | 1,400 | 969 | 698 | ||||||||||||||||
Corporate and Other(c) | (155 | ) | (74 | ) | 79 | (1 | ) | (130 | ) | (122 | ) | 34 | (108 | ) | ||||||||||
Total net sales | $ | 1,755 | $ | 1,985 | $ | 2,092 | $ | 1,934 | $ | 2,205 | $ | 2,928 | $ | 2,521 | $ | 1,900 | ||||||||
Phosphates | $ | 45 | $ | 103 | $ | 71 | $ | 78 | $ | 142 | $ | 170 | $ | 83 | $ | 44 | ||||||||
Potash | 100 | 92 | 97 | 92 | 121 | 149 | 149 | 176 | ||||||||||||||||
Mosaic Fertilizantes | 11 | 38 | 10 | 13 | 17 | 123 | 85 | 27 | ||||||||||||||||
Corporate and Other(c) | (61 | ) | (17 | ) | (51 | ) | (102 | ) | (84 | ) | (49 | ) | (59 | ) | (45 | ) | ||||||||
Consolidated operating earnings | $ | 95 | $ | 214 | $ | 127 | $ | 81 | $ | 196 | $ | 393 | $ | 258 | $ | 202 |
Phosphates(d) | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | 2,235 | 1,876 | 1,790 | ||||||||||||||||
Potash(d) | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | 2,428 | 2,301 | 1,861 | ||||||||||||||||
Mosaic Fertilizantes | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | 3,595 | 2,108 | 1,528 | ||||||||||||||||
Corporate and Other | 319 | 333 | 497 | 266 | 348 | 311 | 438 | 249 | ||||||||||||||||
Total finished product tonnes sold ('000 tonnes) | 6,392 | 6,840 | 6,609 | 5,485 | 6,860 | 8,569 | 6,723 | 5,428 | ||||||||||||||||
Percent specialty(e) | 22 | % | 21 | % | 18 | % | 22 | % | 25 | % | 26 | % | 23 | % | 21 | % |
Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 975 | $ | 779 | $ | 997 | $ | 866 | $ | 1,053 | $ | 1,041 | $ | 926 | $ | 806 | ||||||||
Cost of Goods Sold | 898 | 712 | 864 | 769 | 899 | 861 | 775 | 751 | ||||||||||||||||
Gross Margin | $ | 76 | $ | 67 | $ | 133 | $ | 97 | $ | 154 | $ | 180 | $ | 151 | $ | 55 | ||||||||
Notable Items Included in Gross Margin | — | — | — | (15 | ) | (6 | ) | — | — | (9 | ) | |||||||||||||
Adjusted Gross Margin(b) | $ | 76 | $ | 67 | $ | 133 | $ | 112 | $ | 160 | $ | 180 | $ | 151 | $ | 64 | ||||||||
SG&A | 14 | 11 | 15 | 13 | 11 | 11 | 13 | 7 | ||||||||||||||||
Other operating (income) expense | 18 | (47 | ) | 47 | 6 | 1 | (1 | ) | 55 | 4 | ||||||||||||||
Operating Earnings | $ | 45 | $ | 103 | $ | 71 | $ | 78 | $ | 142 | $ | 170 | $ | 83 | $ | 44 | ||||||||
Plus: Depreciation, Depletion and Amortization | 83 | 86 | 89 | 99 | 102 | 101 | 101 | 103 | ||||||||||||||||
Plus: Accretion Expense | 5 | 5 | 5 | 9 | 10 | 10 | 8 | 12 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (4 | ) | (6 | ) | 1 | 4 | 1 | (1 | ) | 7 | 2 | |||||||||||||
Plus: Other Income (Expense) | 2 | 1 | (1 | ) | (5 | ) | (3 | ) | (7 | ) | — | 1 | ||||||||||||
Plus: Equity in net earnings (loss) of nonconsolidated companies | 5 | 10 | 1 | (4 | ) | 1 | (2 | ) | (1 | ) | — | |||||||||||||
Less: Earnings (loss) from Consolidated Noncontrolling Interests | (2 | ) | — | 2 | (1 | ) | 1 | 2 | (1 | ) | 1 | |||||||||||||
Plus: Notables Items | 23 | (43 | ) | 38 | 16 | (1 | ) | 8 | 41 | 7 | ||||||||||||||
Adjusted EBITDA(b) | $ | 161 | $ | 155 | $ | 201 | $ | 198 | $ | 251 | $ | 277 | $ | 240 | $ | 168 | ||||||||
Capital expenditures | $ | 101 | $ | 87 | $ | 110 | $ | 100 | $ | 92 | $ | 103 | $ | 119 | $ | 120 | ||||||||
Gross Margin $ / tonne of finished product | $ | 29 | $ | 32 | $ | 53 | $ | 49 | $ | 67 | $ | 80 | $ | 81 | $ | 31 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 29 | $ | 32 | $ | 53 | $ | 57 | $ | 70 | $ | 80 | $ | 81 | $ | 36 | ||||||||
Gross margin as a percent of sales | 8 | % | 9 | % | 13 | % | 11 | % | 15 | % | 17 | % | 16 | % | 7 | % | ||||||||
Freight included in finished goods (in millions) | $ | 103 | $ | 78 | $ | 107 | $ | 77 | $ | 100 | $ | 92 | $ | 86 | $ | 74 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
DAP/MAP | 1,706 | 1,483 | 1,663 | 1,295 | 1,332 | 1,261 | 1,059 | 1,141 | ||||||||||||||||
Specialty(f) | 876 | 627 | 833 | 650 | 970 | 974 | 817 | 649 | ||||||||||||||||
Total Finished Product(d) | 2,582 | 2,110 | 2,496 | 1,945 | 2,302 | 2,235 | 1,876 | 1,790 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 377 | $ | 369 | $ | 399 | $ | 431 | $ | 450 | $ | 454 | $ | 479 | $ | 442 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(h) | 2,461 | 2,339 | 2,322 | 2,045 | 2,081 | 2,115 | 2,117 | 1,992 | ||||||||||||||||
Operating Rate(i) | 84 | % | 80 | % | 79 | % | 84 | % | 86 | % | 87 | % | 87 | % | 82 | % | ||||||||
Realized costs ($/tonne) | ||||||||||||||||||||||||
Ammonia (tonne)(j) | $ | 373 | $ | 283 | $ | 298 | $ | 344 | $ | 325 | $ | 329 | $ | 343 | $ | 352 | ||||||||
Sulfur (long ton)(k) | $ | 90 | $ | 88 | $ | 97 | $ | 128 | $ | 139 | $ | 137 | $ | 149 | $ | 153 | ||||||||
Blended rock | $ | 58 | $ | 63 | $ | 55 | $ | 55 | $ | 59 | $ | 57 | $ | 59 | $ | 61 | ||||||||
Phosphate cash conversion costs, production / tonne | $ | 65 | $ | 68 | $ | 64 | $ | 64 | $ | 64 | $ | 63 | $ | 61 | $ | 63 | ||||||||
U.S. mined rock costs, cash produced / tonne | $ | 40 | $ | 40 | $ | 35 | $ | 35 | $ | 36 | $ | 40 | $ | 43 | $ | 43 | ||||||||
Phosphate Rock | ||||||||||||||||||||||||
Sales Volumes ('000 tonnes)(l) | — | — | — | 360 | 241 | 399 | 400 | 192 | ||||||||||||||||
Average rock selling price (destination)(m) | $ | — | $ | — | $ | — | $ | 79 | $ | 69 | $ | 68 | $ | 67 | $ | 74 | ||||||||
Gross margin $ / rock tonne | $ | — | $ | — | $ | — | $ | 4 | $ | (3 | ) | $ | 3 | $ | (3 | ) | $ | 1 | ||||||
Freight included in rock (in millions) | $ | — | $ | — | $ | — | $ | 8 | $ | 4 | $ | 3 | $ | 4 | $ | 1 |
Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 468 | $ | 474 | $ | 496 | $ | 404 | $ | 569 | $ | 609 | $ | 592 | $ | 504 | ||||||||
Cost of Goods Sold | 358 | 376 | 383 | 301 | 437 | 448 | 390 | 318 | ||||||||||||||||
Gross Margin | $ | 110 | $ | 99 | $ | 114 | $ | 103 | $ | 132 | $ | 161 | $ | 202 | $ | 186 | ||||||||
Notable Items Included in Gross Margin | — | (10 | ) | — | (5 | ) | (4 | ) | — | — | — | |||||||||||||
Adjusted Gross Margin(b) | $ | 110 | $ | 109 | $ | 114 | $ | 108 | $ | 136 | $ | 161 | $ | 202 | $ | 186 | ||||||||
SG&A | 8 | 6 | 10 | 8 | 9 | 8 | 10 | 6 | ||||||||||||||||
Other operating (income) expense | 2 | 1 | 7 | 3 | 2 | 4 | 43 | 4 | ||||||||||||||||
Operating Earnings | $ | 100 | $ | 92 | $ | 97 | $ | 92 | $ | 121 | $ | 149 | $ | 149 | $ | 176 | ||||||||
Plus: Depreciation, Depletion and Amortization | 73 | 73 | 72 | 76 | 73 | 73 | 80 | 78 | ||||||||||||||||
Plus: Accretion Expense | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 30 | 55 | (13 | ) | (30 | ) | (23 | ) | 22 | (86 | ) | 37 | ||||||||||||
Plus: Other Income (Expense) | — | — | — | — | — | — | 1 | 1 | ||||||||||||||||
Plus: Notable Items | (30 | ) | (45 | ) | 13 | 35 | 27 | (22 | ) | 125 | (37 | ) | ||||||||||||
Adjusted EBITDA(b) | $ | 174 | $ | 175 | $ | 170 | $ | 174 | $ | 199 | $ | 223 | $ | 270 | $ | 256 | ||||||||
Capital expenditures | $ | 61 | $ | 102 | $ | 103 | $ | 104 | $ | 80 | $ | 98 | $ | 148 | $ | 140 | ||||||||
Gross Margin $ / tonne of finished product | $ | 50 | $ | 44 | $ | 51 | $ | 61 | $ | 56 | $ | 66 | $ | 88 | $ | 100 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 50 | $ | 49 | $ | 51 | $ | 64 | $ | 58 | $ | 66 | $ | 88 | $ | 100 | ||||||||
Gross margin as a percent of sales | 23 | % | 21 | % | 23 | % | 25 | % | 23 | % | 26 | % | 34 | % | 37 | % | ||||||||
Supplemental Cost Information | ||||||||||||||||||||||||
Canadian resource taxes | $ | 33 | $ | (5 | ) | $ | 19 | $ | 26 | $ | 34 | $ | 41 | $ | 59 | $ | 47 | |||||||
Royalties | $ | 6 | $ | 52 | $ | 9 | $ | 8 | $ | 9 | $ | 10 | $ | 12 | $ | 11 | ||||||||
Brine inflow expenses | $ | 38 | $ | 37 | $ | 36 | $ | 39 | $ | 39 | $ | 37 | $ | 39 | $ | 36 | ||||||||
Freight(n) | $ | 70 | $ | 69 | $ | 80 | $ | 71 | $ | 87 | $ | 84 | $ | 71 | $ | 53 | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes)(d) | ||||||||||||||||||||||||
MOP | 2,017 | 2,062 | 2,026 | 1,525 | 2,125 | 2,187 | 2,143 | 1,729 | ||||||||||||||||
Specialty(o) | 174 | 157 | 191 | 165 | 239 | 241 | 158 | 132 | ||||||||||||||||
Total Finished Product(d) | 2,191 | 2,219 | 2,217 | 1,690 | 2,364 | 2,428 | 2,301 | 1,861 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 214 | $ | 214 | $ | 224 | $ | 239 | $ | 241 | $ | 251 | $ | 257 | $ | 271 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Production Volume | 2,302 | 2,151 | 2,149 | 2,275 | 2,151 | 2,220 | 2,593 | 2,254 | ||||||||||||||||
Operating Rate | 93 | % | 87 | % | 87 | % | 87 | % | 82 | % | 85 | % | 99 | % | 86 | % | ||||||||
MOP cash costs of production including brine / production tonne(p) | $ | 77 | $ | 101 | $ | 87 | $ | 86 | $ | 85 | $ | 79 | $ | 72 | $ | 84 | ||||||||
MOP cash costs of brine management / production tonne | $ | 14 | $ | 15 | $ | 14 | $ | 15 | $ | 16 | $ | 14 | $ | 13 | $ | 13 | ||||||||
Average CAD / USD | $ | 1.345 | $ | 1.253 | $ | 1.270 | $ | 1.264 | $ | 1.291 | $ | 1.307 | $ | 1.322 | $ | 1.329 |
Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||||||||||||
Net Sales and Gross Margin (in millions, except per tonne) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | 467 | $ | 806 | $ | 520 | $ | 665 | $ | 713 | $ | 1,400 | $ | 969 | $ | 698 | ||||||||
Cost of Goods Sold | 442 | 754 | 487 | 606 | 660 | 1,248 | 851 | 646 | ||||||||||||||||
Gross Margin | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | $ | 152 | $ | 118 | $ | 52 | ||||||||
Notable Items Included in Gross Margin | — | — | — | — | — | — | — | — | ||||||||||||||||
Adjusted Gross Margin(b) | $ | 25 | $ | 52 | $ | 32 | $ | 59 | $ | 53 | $ | 152 | $ | 118 | $ | 52 | ||||||||
SG&A | 17 | 18 | 22 | 21 | 26 | 23 | 24 | 22 | ||||||||||||||||
Other operating (income) expense | (2 | ) | (3 | ) | 1 | 25 | 10 | 6 | 9 | 3 | ||||||||||||||
Operating Earnings | $ | 11 | $ | 38 | $ | 10 | $ | 13 | $ | 17 | $ | 123 | $ | 85 | $ | 27 | ||||||||
Plus: Depreciation, Depletion and Amortization | 4 | 4 | 4 | 37 | 37 | 36 | 49 | 32 | ||||||||||||||||
Plus: Accretion Expense | — | — | — | 2 | 1 | 2 | 2 | 2 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | (18 | ) | 14 | (19 | ) | (5 | ) | (57 | ) | (21 | ) | (2 | ) | (9 | ) | |||||||||
Plus: Other Income (Expense) | (1 | ) | 1 | (1 | ) | — | (1 | ) | (1 | ) | 1 | (2 | ) | |||||||||||
Less: Earnings from Consolidated Noncontrolling Interests | — | 2 | 1 | — | — | 1 | 2 | — | ||||||||||||||||
Plus: Notable Items | 18 | (14 | ) | 19 | 21 | 63 | 25 | 5 | 12 | |||||||||||||||
Adjusted EBITDA(b) | $ | 14 | $ | 40 | $ | 13 | $ | 68 | $ | 60 | $ | 163 | $ | 138 | $ | 62 | ||||||||
Capital expenditures | $ | 5 | $ | 4 | $ | 16 | $ | 18 | $ | 29 | $ | 40 | $ | 61 | $ | 53 | ||||||||
Gross Margin $ / tonne of finished product | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | $ | 42 | $ | 56 | $ | 34 | ||||||||
Adjusted Gross Margin $ / tonne of finished product | $ | 19 | $ | 24 | $ | 23 | $ | 37 | $ | 29 | $ | 42 | $ | 56 | $ | 34 | ||||||||
Gross margin as a percent of sales | 5 | % | 6 | % | 6 | % | 9 | % | 7 | % | 11 | % | 12 | % | 8 | % | ||||||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | ||||||||||||||||||||||||
Phosphate produced in Brazil | 82 | 85 | 85 | 427 | 636 | 1,214 | 570 | 412 | ||||||||||||||||
Potash produced in Brazil | — | — | — | 99 | 66 | 82 | 75 | 72 | ||||||||||||||||
Purchased nutrients | 1,218 | 2,093 | 1,314 | 1,058 | 1,144 | 2,299 | 1,463 | 1,044 | ||||||||||||||||
Total Finished Product | 1,300 | 2,178 | 1,399 | 1,584 | 1,846 | 3,595 | 2,108 | 1,528 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 359 | $ | 370 | $ | 372 | $ | 420 | $ | 386 | $ | 389 | $ | 460 | $ | 457 | ||||||||
Production Volumes ('000 tonnes) | ||||||||||||||||||||||||
Total tonnes produced(q) | — | — | — | 987 | 822 | 920 | 1,019 | 889 | ||||||||||||||||
Operating Rate | — | % | — | % | — | % | 81 | % | 67 | % | 75 | % | 82 | % | 72 | % | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 176 | 164 | 150 | 70 | 216 | 97 | 156 | 162 | ||||||||||||||||
MicroEssentials® from Mosaic | 365 | 178 | 55 | 182 | 392 | 394 | 90 | 202 | ||||||||||||||||
Potash from Mosaic/Canpotex | 868 | 451 | 346 | 389 | 770 | 841 | 361 | 452 | ||||||||||||||||
Phosphate cash conversion costs in BRL, production / tonne | R$ | — | R$ | — | R$ | — | R$ | 262 | R$ | 264 | R$ | 268 | R$ | 268 | R$ | 285 | ||||||||
Potash cash conversion costs in BRL, production / tonne | R$ | — | R$ | — | R$ | — | R$ | 567 | R$ | 946 | R$ | 513 | R$ | 651 | R$ | 516 | ||||||||
Mined rock costs in BRL, cash produced / tonne | R$ | — | R$ | — | R$ | — | R$ | 335 | R$ | 335 | R$ | 346 | R$ | 369 | R$ | 344 | ||||||||
Average BRL / USD | $ | 3.215 | $ | 3.168 | $ | 3.308 | $ | 3.246 | $ | 3.604 | $ | 3.955 | $ | 3.804 | $ | 3.771 |
Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | |||||||||||||||||
Net Sales and Gross Margin (in millions) | ||||||||||||||||||||||||
Segment income statement | ||||||||||||||||||||||||
Net Sales | $ | (155 | ) | $ | (74 | ) | $ | 79 | $ | (1 | ) | $ | (130 | ) | $ | (122 | ) | $ | 34 | $ | (108 | ) | ||
Cost of Goods Sold | (136 | ) | (98 | ) | 78 | 15 | (86 | ) | (125 | ) | 39 | (125 | ) | |||||||||||
Gross Margin (Loss) | $ | (19 | ) | $ | 23 | $ | 1 | $ | (16 | ) | $ | (44 | ) | $ | 3 | $ | (5 | ) | $ | 17 | ||||
Notable items Included in Gross Margin | 3 | 2 | (17 | ) | (12 | ) | (34 | ) | 11 | 2 | 25 | |||||||||||||
Adjusted Gross Margin (Loss)(b) | $ | (22 | ) | $ | 21 | $ | 18 | $ | (4 | ) | $ | (10 | ) | $ | (8 | ) | $ | (7 | ) | $ | (8 | ) | ||
SG&A | 33 | 31 | 37 | 52 | 33 | 37 | 43 | 59 | ||||||||||||||||
Other operating (income) expense | 9 | 9 | 15 | 34 | 7 | 15 | 11 | 3 | ||||||||||||||||
Operating Earnings (Loss) | $ | (61 | ) | $ | (17 | ) | $ | (51 | ) | $ | (102 | ) | $ | (84 | ) | $ | (49 | ) | $ | (59 | ) | $ | (45 | ) |
Plus: Depreciation, Depletion and Amortization | 6 | 5 | 7 | 5 | 5 | 5 | 5 | 5 | ||||||||||||||||
Plus: Share-Based Compensation Expense | 5 | 4 | 3 | 15 | 7 | 3 | 2 | 15 | ||||||||||||||||
Plus: Foreign Exchange Gain (Loss) | 1 | (5 | ) | 5 | (1 | ) | — | (2 | ) | 2 | (7 | ) | ||||||||||||
Plus: Other Income (Expense) | — | — | — | (2 | ) | 2 | (1 | ) | (2 | ) | (2 | ) | ||||||||||||
Less: Earnings (Loss) from Consolidated Noncontrolling Interests | 2 | — | (2 | ) | (1 | ) | (1 | ) | (1 | ) | (2 | ) | (2 | ) | ||||||||||
Plus: Notable Items | (4 | ) | 7 | 25 | 43 | 39 | 2 | 5 | (24 | ) | ||||||||||||||
Adjusted EBITDA(b) | $ | (55 | ) | $ | (6 | ) | $ | (9 | ) | $ | (41 | ) | $ | (30 | ) | $ | (41 | ) | $ | (45 | ) | $ | (56 | ) |
Elimination of profit in inventory income (loss) included in COGS | $ | (28 | ) | $ | 20 | $ | (18 | ) | $ | (8 | ) | $ | (21 | ) | $ | (7 | ) | $ | (7 | ) | $ | (12 | ) | |
Unrealized gain (loss) on derivatives included in COGS | $ | 3 | $ | 2 | $ | (17 | ) | $ | (12 | ) | $ | (34 | ) | $ | 11 | $ | 2 | $ | 25 | |||||
Operating Data | ||||||||||||||||||||||||
Sales volumes ('000 tonnes) | 319 | 333 | 497 | 266 | 348 | 311 | 438 | 249 | ||||||||||||||||
Average finished product selling price (destination)(g) | $ | 323 | $ | 373 | $ | 387 | $ | 333 | $ | 396 | $ | 377 | $ | 431 | $ | 372 | ||||||||
Purchases ('000 tonnes) | ||||||||||||||||||||||||
DAP/MAP from Mosaic | 232 | 222 | 50 | — | 22 | 47 | 47 | 98 | ||||||||||||||||
MicroEssentials® from Mosaic | — | — | 68 | — | 8 | — | 44 | 38 | ||||||||||||||||
Potash from Mosaic/Canpotex | 86 | 147 | 198 | 240 | 108 | 125 | 278 | 257 |
Q1 2019 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 23 | $ | (6 | ) | $ | 0.05 | |||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 25 | (7 | ) | 0.05 | ||||||||
Louisiana gypstack costs | Phosphates | Cost of goods sold | (9 | ) | 2 | (0.02 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (3 | ) | 1 | (0.01 | ) | |||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | 11 | — | 0.03 | |||||||||
Total Notable Items | $ | 42 | $ | (9 | ) | $ | 0.09 |
Q4 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (79 | ) | $ | 11 | $ | (0.17 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | — | |||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (6 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (33 | ) | (0.09 | ) | |||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (30 | ) | 4 | (0.06 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (18 | ) | 3 | (0.04 | ) | |||||||
Asset write-off | Potash | Other operating income (expense) | (39 | ) | 5 | (0.09 | ) | |||||||
Total Notable Items | $ | (176 | ) | $ | (9 | ) | $ | (0.48 | ) |
Q3 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (2 | ) | $ | — | $ | — | |||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 11 | (2 | ) | 0.02 | ||||||||
Integration costs | Corporate and Other | Other operating income (expense) | (3 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Realized loss on RCRA Trust Securities | Phosphates | Other non-operating income (expense) | (7 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (29 | ) | (0.08 | ) | |||||||
Earn-out obligation | Corporate and Other | Other operating income (expense) | (8 | ) | — | (0.02 | ) | |||||||
Total Notable Items | $ | (13 | ) | $ | (28 | ) | $ | (0.11 | ) |
Q2 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (79 | ) | $ | 18 | $ | (0.16 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (34 | ) | 8 | (0.07 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (6 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (4 | ) | 1 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (6 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 13 | 0.04 | |||||||||
Sales tax refund | Phosphates | Other operating income (expense) | 6 | (1 | ) | 0.01 | ||||||||
Total Notable Items | $ | (128 | ) | $ | 42 | $ | (0.22 | ) |
Q1 2018 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (32 | ) | $ | 9 | $ | (0.06 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (12 | ) | 3 | (0.02 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (18 | ) | 5 | (0.03 | ) | |||||||
Integration costs | Corporate and Other | Other operating income (expense) | (8 | ) | 2 | (0.02 | ) | |||||||
Costs to capture synergies | Mosaic Fertilizantes | Other operating income (expense) | (16 | ) | 5 | (0.03 | ) | |||||||
Refinement of inventory costing | Potash | Cost of goods sold | (5 | ) | 2 | (0.01 | ) | |||||||
Refinement of inventory costing | Phosphates | Cost of goods sold | (15 | ) | 4 | (0.03 | ) | |||||||
Realized loss on RCRA Trust securities | Phosphates | Other non-operating income (expense) | (5 | ) | 1 | (0.01 | ) | |||||||
Severance | Corporate and Other | Other operating income (expense) | (4 | ) | 1 | (0.01 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 48 | 0.13 | |||||||||
Total Notable Items | $ | (115 | ) | $ | 80 | $ | (0.09 | ) |
Q4 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | (27 | ) | $ | 2 | $ | (0.07 | ) | ||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | (17 | ) | 1 | (0.05 | ) | |||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (12 | ) | — | (0.04 | ) | |||||||
Discrete tax items relating to changes in US tax laws | Consolidated | (Provision for) benefit from income taxes | — | (456 | ) | (1.30 | ) | |||||||
Other discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | (7 | ) | (0.02 | ) | |||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | — | ||||||||
Restructuring | Phosphates | Other operating income (expense) | (20 | ) | 2 | (0.05 | ) | |||||||
ARO adjustment | Phosphates | Other operating income (expense) | (11 | ) | 1 | (0.03 | ) | |||||||
Asset write-off | Phosphates | Other operating income (expense) | (8 | ) | 1 | (0.02 | ) | |||||||
Resolution of royalty matter | Potash | Cost of goods sold | — | 2 | 0.01 | |||||||||
Total Notable Items | $ | (97 | ) | $ | (454 | ) | $ | (1.57 | ) |
Q3 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | $ | 58 | $ | — | $ | 0.17 | ||||||
Unrealized gain (loss) on derivatives | Corporate and Other | Cost of goods sold | 2 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate and Other | Other operating income (expense) | (6 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 5 | 0.01 | |||||||||
Pre-issuance hedging gain (loss) | Consolidated | Interest expense | (2 | ) | — | (0.01 | ) | |||||||
Gain on sale of land | Phosphates | Other operating income (expense) | 52 | — | 0.15 | |||||||||
Change in Canadian tax regulations | Potash | Cost of goods sold | (10 | ) | (17 | ) | (0.08 | ) | ||||||
Asset write-off | Phosphates | Other operating income (expense) | (3 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | 91 | $ | (12 | ) | $ | 0.22 |
Q2 2017 | ||||||||||||||
Description | Segment | Line Item | Amount (in millions) | Tax Effect(r) (in millions) | EPS Impact (per share) | |||||||||
Foreign currency transaction gain | Consolidated | Foreign currency transaction gain (loss) | $ | 9 | $ | 1 | $ | 0.03 | ||||||
Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | 3 | — | 0.01 | |||||||||
Fees related to purchase of Vale assets | Corporate & Other | Other operating income (expense) | (5 | ) | — | (0.02 | ) | |||||||
Discrete tax items | Consolidated | (Provision for) benefit from income taxes | — | 16 | 0.04 | |||||||||
Pre-issuance hedging loss | Consolidated | Interest Expense | (8 | ) | (1 | ) | (0.02 | ) | ||||||
Water loss expense | Phosphates | Other operating income (expense) | (14 | ) | (1 | ) | (0.04 | ) | ||||||
Miski Mayo | Phosphates | Equity in net earnings (loss) of nonconsolidated companies | (5 | ) | — | (0.01 | ) | |||||||
Total Notable Items | $ | (20 | ) | $ | 15 | $ | (0.01 | ) |
(a) | Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See “Non-GAAP Reconciliations”. |
(b) | See definitions of Adjusted EBITDA and Adjusted Gross Margin under “Non-GAAP Reconciliations”. |
(c) | Includes elimination of intersegment sales. |
(d) | Finished product sales volumes include intersegment sales. |
(e) | Includes MicroEssentials, K-Mag, Aspire and animal feed finished specialty products as a percentage of Phosphate and Potash segment sales tonnes. |
(f) | Includes MicroEssentials and animal feed finished specialty products. |
(g) | Average price of all finished products sold by Potash, Phosphates, Mosaic Fertilizantes and India/China. |
(h) | Includes crop nutrient dry concentrates and animal feed ingredients. |
(i) | Starting in Q1 2018, Plant City was excluded from operational capacity. |
(j) | Amounts are representative of our average ammonia costs in cost of goods sold. |
(k) | Amounts are representative of our average sulfur costs in cost of goods sold. |
(l) | Rock sales volumes include intersegment sales. |
(m) | Average selling price of all rock sold. |
(n) | Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales. |
(o) | Includes K-Mag, Aspire and animal feed finished specialty products. |
(p) | MOP production cash costs including brine and excluding Canadian resource tax are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period. |
(q) | Includes phosphate and potash crop nutrients and animal feed ingredients. |
(r) | Tax impact is based on our expected annual effective tax rate. |
(in millions) | Q2 2017 | Q3 2017 | Q4 2017 | Q1 2018 | Q2 2018 | Q3 2018 | Q4 2018 | Q1 2019 | ||||||||||||||||
Consolidated Net Income (Loss) | $ | 97 | $ | 228 | $ | (431 | ) | $ | 42 | $ | 68 | $ | 247 | $ | 112 | $ | 131 | |||||||
Less: Consolidated Interest Expense, Net | (36 | ) | (36 | ) | (40 | ) | (49 | ) | (45 | ) | (41 | ) | (31 | ) | (47 | ) | ||||||||
Plus: Consolidated Depreciation, Depletion & Amortization | 166 | 169 | 172 | 217 | 217 | 215 | 235 | 218 | ||||||||||||||||
Plus: Accretion Expense | 6 | 6 | 6 | 12 | 12 | 13 | 11 | 15 | ||||||||||||||||
Plus: Share-Based Compensation Expense | 5 | 4 | 3 | 15 | 7 | 3 | 2 | 15 | ||||||||||||||||
Plus: Consolidated Provision for (Benefit from) Income Taxes | (23 | ) | 18 | 490 | (50 | ) | 4 | 91 | 33 | 46 | ||||||||||||||
Plus: Notable Items | 12 | (93 | ) | 95 | 115 | 128 | 13 | 176 | (42 | ) | ||||||||||||||
Consolidated Adjusted EBITDA | $ | 300 | $ | 368 | $ | 375 | $ | 399 | $ | 480 | $ | 622 | $ | 603 | $ | 430 |
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