Business Segments

The reportable segments are determined by management based upon factors such as products and services, production processes, technologies, market dynamics, and for which segment financial information is available for our chief operating decision maker.

For a description of our business segments see Note 1 to the Condensed Consolidated Financial Statements in this report. We evaluate performance based on the operating earnings of the respective business segments, which includes certain allocations of corporate selling, general and administrative expenses. The segment results may not represent the actual results that would be expected if they were independent, stand-alone businesses. Intersegment eliminations, including profit on intersegment sales, mark-to-market gains/losses on derivatives, debt expenses, Streamsong Resort^® results of operations and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other.

Segment information for the three and nine months ended September 30, 2018 and 2017 was as follows:



	Phosphates		Potash			Mosaic Fertilizantes		Corporate, Eliminations and Other (a)			Total
Three months ended September 30, 2018
Net sales to external customers	$	801.1	$	603.0		$	1,399.8	$	124.2		$	2,928.1
Intersegment net sales	240.4		6.0			—		(246.4		)	—
Net sales	1,041.5		609.0			1,399.8		(122.2		)	2,928.1
Gross margin	180.0		160.9			152.0		2.6			495.5
Canadian resource taxes	—		40.5			—		—			40.5
Gross margin (excluding Canadian resource taxes)	180.0		201.4			152.0		2.6			536.0
Operating earnings (loss)	156.7		136.4			121.3		(21.1		)	393.3
Depreciation, depletion and amortization expense	100.9		72.7			35.9		5.0			214.5
Capital expenditures	103.4		97.5			39.9		0.2			241.0
Three months ended September 30, 2017
Net sales to external customers	$	579.5	$	469.9		$	806.1	$	129.3		$	1,984.8
Intersegment net sales	199.5		4.2			—		(203.7		)	—
Net sales	779.0		474.1			806.1		(74.4		)	1,984.8
Gross margin	66.7		98.6			52.4		23.1			240.8
Canadian resource taxes	—		(4.7		)	—		—			(4.7		)
Gross margin (excluding Canadian resource taxes)	66.7		93.9			52.4		23.1			236.1
Operating earnings (loss)	88.3		76.9			37.5		11.2			213.9
Depreciation, depletion and amortization expense	86.3		72.7			4.3		5.5			168.8
Capital expenditures	86.7		102.3			3.8		4.8			197.6
Nine months ended September 30, 2018
Net sales to external customers	$	2,345.7	$	1,564.5		$	2,777.8	$	378.8		$	7,066.8
Intersegment net sales	614.9		17.7			—		(632.6		)	—
Net sales	2,960.6		1,582.2			2,777.8		(253.8		)	7,066.8
Gross margin	430.3		395.5			264.2		(57.8		)	1,032.2
Canadian resource taxes	—		100.5			—		—			100.5
Gross margin (excluding Canadian resource taxes)	430.3		496.0			264.2		(57.8		)	1,132.7
Operating earnings (loss)	345.2		318.3			144.5		(137.7		)	670.3
Depreciation, depletion and amortization expense	302.3		221.2			109.9		15.4			648.8
Capital expenditures	295.1		281.4			86.6		2.3			665.4
Nine months ended September 30, 2017
Net sales to external customers	$	1,946.8	$	1,346.6		$	1,700.3	$	323.8		$	5,317.5
Intersegment net sales	645.8		9.8			—		(655.6		)	—
Net sales	2,592.6		1,356.4			1,700.3		(331.8		)	5,317.5
Gross margin	199.3		277.9			96.1		(10.6		)	562.7
Canadian resource taxes	—		51.6			—		—			51.6
Gross margin (excluding Canadian resource taxes)	199.3		329.5			96.1		(10.6		)	614.3
Operating earnings (loss)	134.8		198.0			52.7		(46.9		)	338.6
Depreciation, depletion and amortization expense	249.3		213.8			12.8		17.6			493.5
Capital expenditures	291.2		269.1			17.1		12.5			589.9
Total Assets
As of September 30, 2018	$	7,692.8	$	7,948.3		$	4,172.4	$	601.2		$	20,414.7
As of December 31, 2017	7,700.6		8,301.7			1,376.7		1,254.4			18,633.4

^(a)

The “Corporate, Eliminations and Other” category includes the results of our ancillary distribution operations in India and China. For the three and nine months ended September 30, 2018, distribution operations in India and China had revenues of $117.8 million and $345.1 million, respectively, and gross margins of $9.4 million and $32.1 million, respectively. For the three and nine months ended September 30, 2017, distribution operations in India and China had revenues of $124.6 million and $300.6 million, respectively, and gross margins of $11.2 million and $34.7 million, respectively.

Financial information relating to our operations by geographic area is as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2018		2017		2018		2017
Net sales^(a):
Brazil	$	1,388.4	$	793.8	$	2,779.5	$	1,700.0
Canpotex^(b)	245.8		202.5		557.9		533.4
Canada	160.1		80.2		436.4		306.3
India	64.9		93.8		180.0		190.6
China	52.9		39.6		169.2		128.4
Mexico	25.9		19.9		108.0		99.7
Australia	16.8		18.1		101.0		91.2
Colombia	22.8		23.8		80.1		79.3
Japan	21.3		16.8		79.2		61.5
Paraguay	40.2		43.8		78.9		93.5
Argentina	26.9		23.4		60.3		38.6
Peru	23.9		13.6		57.0		27.3
Honduras	9.7		5.3		25.5		18.0
Chile	—		1.5		22.6		16.0
Thailand	5.6		4.6		22.2		15.6
Dominican Republic	8.1		1.9		10.6		11.1
Other	10.5		12.0		48.5		41.0
Total international countries	2,123.8		1,394.6		4,816.9		3,451.5
United States	804.3		590.2		2,249.9		1,866.0
Consolidated	$	2,928.1	$	1,984.8	$	7,066.8	$	5,317.5

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^(a)	Revenues are attributed to countries based on location of customer.


^(b)	The export association of the Saskatchewan potash producers.

Net sales by product type are as follows:



	Three Months Ended September 30,				Nine Months Ended September 30,
(in millions)	2018		2017		2018		2017
Sales by product type:
Phosphate Crop Nutrients	$	906.0	$	524.2	$	2,241.4	$	1,520.6
Potash Crop Nutrients	865.8		631.4		1,975.5		1,600.3
Crop Nutrient Blends	497.0		482.0		1,031.8		1,058.1
Specialty Products^(a)	536.9		300.8		1,383.0		960.0
Phosphate Rock	—		—		29.8		—
Other^(b)	122.4		46.4		405.3		178.5
	$	2,928.1	$	1,984.8	$	7,066.8	$	5,317.5

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^(a)	Includes sales of MicroEssentials^®, K-Mag, Aspire and animal feed ingredients.


^(b)	Includes sales of industrial potash.