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MOSAIC CO0001285785false00012857852023-05-032023-05-03

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 3, 2023
 
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
 
 
DE 001-32327 20-1026454
(State or other jurisdiction
of incorporation)
(Commission
File Number)
(IRS Employer
Identification No.)
101 East Kennedy Blvd.
33602
Suite 2500
Tampa,
Florida
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (800) 918-8270
Not applicable
(Former Name or Former Address, if Changed Since Last Report)  
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.01 per share MOS New York Stock Exchange
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
☐ Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨


Item 2.02. Results of Operations and Financial Condition.
The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of The Mosaic Company’s (“Mosaic,” and Mosaic and its subsidiaries, individually or in any combination, “we,” “us” or “our”) announcement regarding its earnings and results of operations for the quarter ended March 31, 2023, as presented in a press release issued on May 3, 2023.
Furnished herewith as Exhibit 99.2 and incorporated by reference herein is certain performance data for the period ended March 31, 2023 to be published on Mosaic’s website.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The following exhibits are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.
Exhibit No.   Description
99.1   
99.2
104 Cover Page Interactive Data File, formatted in Inline XBRL
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
THE MOSAIC COMPANY
Date: May 3, 2023 By: /s/ Philip E. Bauer
Name: Philip E. Bauer
Title: Senior Vice President, General Counsel
and Corporate Secretary


EX-99.1 2 pressreleaseq12023-ex991.htm EX-99.1 - Q1 2023 EARNINGS RELEASE Document

Exhibit 99.1
image1a31.jpg
    
The Mosaic Company
101 E. Kennedy Blvd., Suite 2500
Tampa, FL 33602
www.mosaicco.com
FOR IMMEDIATE RELEASE
Investors
Paul Massoud
813-775-4260
paul.massoud@mosaicco.com
   
Media
Ben Pratt
813-775-4206
benjamin.pratt@mosaicco.com
   

THE MOSAIC COMPANY REPORTS FIRST QUARTER 2023 RESULTS
•First quarter net income of $435 million, Adjusted EBITDA(1) of $777 million
•Cash from operations of $149 million, free cash flow(1) of $191 million
•Capital return to shareholders totaled $608 million, reflecting $456 million of share repurchases and $152 million of dividends

TAMPA, FL, May 3, 2023 - The Mosaic Company (NYSE: MOS), reported net income of $435 million, or $1.28 per diluted share, for the first quarter of 2023. Adjusted EPS(1) was $1.14 and Adjusted EBITDA(1) was $777 million. Gross margin was $670 million.

“Mosaic delivered another strong first quarter,” said President and CEO Joc O’Rourke. “While fertilizer prices have pulled back from last year's peak levels, they remain constructive. At the same time, North American fertilizer demand has accelerated as growers are being incented to maximize yields.”

Highlights:
•First quarter revenues totaled $3.6 billion, down 8 percent from the year ago period, reflecting the impact of lower prices somewhat offset by higher volumes. The gross margin rate in the first quarter was 18.6 percent, down from 36.7 percent in the year ago period.
•Net Income in the first quarter totaled $435 million, compared with $1.2 billion in the year ago period. Adjusted EBITDA(1) totaled $777 million, compared with $1.5 billion in the first quarter of 2022. Cash from operating activities totaled $149 million and free cash flow(1) totaled $191 million.
•Potash operating earnings were $402 million in the first quarter, compared to $563 million in the prior year period. Adjusted EBITDA(1) totaled $474 million in the first quarter, compared to $651 million last year. The last of Esterhazy's thirteen underground miners is expected to enter service in the second half of 2023. With production now sufficient to meet current market demand, the restart of the Colonsay mine has been deferred to the second half of 2023.
•Phosphate operating earnings were $266 million in the first quarter, compared to $493 million in the prior year period. Adjusted EBITDA(1) totaled $382 million, compared to $632 million in the first quarter of 2022. Segment results reflected the impact of lower prices, somewhat offset by higher volumes. Production returned to normal operating rates in February of 2023.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
1


•Mosaic Fertilizantes operating earnings were negative $32 million in the first quarter, compared to positive $187 million in the prior year period. Adjusted EBITDA(1) totaled $3 million during the quarter, down from $233 million in the first quarter of 2022. Destocking of high-cost raw materials and distribution inventories impacted results, but that is now largely complete. Looking ahead, margins in the segment are expected to return to more normalized mid-cycle levels beginning in the second quarter of 2023.
•Mosaic recognized earnings from equity investments of $31 million. In February, Mosaic received a $25 million dividend distribution from the MWSPC joint venture in Saudi Arabia.
2023 Capital Allocation Strategy
The company remains committed to its capital allocation strategy:
•Mosaic returned $608 million to shareholders during the first quarter of 2023 through share repurchases and dividends. Mosaic continues to expect to return largely all of 2023 free cash flow(1) to shareholders.

•The company expects to refinance $900 million of long-term debt that matures later this year.

•Total expected capital expenditures in 2023 remain unchanged at $1.3-$1.4 billion. Growth investments include the expansion of MicroEssentials capacity at our Riverview facility, construction of the new Palmeirante blending and distribution facility in Brazil, construction of a purified phosphoric acid test plant in North America, and extending production from the Taquari potash mine in Brazil.

First Quarter Segment Results
Potash Results Q1 2023 Q1 2022
Sales Volumes million tonnes* 1.9 1.8
MOP Selling Price(2)
$421 $582
Gross Margin (GAAP) per tonne $216 $323
Adjusted Gross Margin (non-GAAP) per tonne(1)
$216 $323
Operating Earnings - millions $402 $563
Segment Adjusted EBITDA(1) - millions
 $474 $651
*Tonnes = finished product tonnes

Net sales in the Potash segment totaled $907 million, down from $1.1 billion one year ago. Gross margin was $413 million compared to $579 million for the same period a year ago, as lower pricing was partially offset by lower royalties and Canadian resource taxes. Gross margin per tonne was $216 compared to $323 in the prior-year period.
Total potash production was 1.9 million tonnes, down from 2.2 million tonnes in the prior year period, reflecting the impact of idled production at Colonsay. Sales volumes totaled 1.9 million tonnes, up from 1.8 million tonnes in the prior year quarter. MOP cash costs were $81 per tonne, in line with the prior year period.
Sales volumes in the second quarter are expected to be 2.0-2.2 million tonnes with realized mine-gate MOP prices in the range of $325-$375 per tonne. Shipments in the second quarter are expected to reflect a higher percentage of lower-priced export sales.





(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
(2) Average MOP Selling Price (fob mine)
2

Phosphate Results Q1 2023 Q1 2022
Sales Volumes million tonnes* 1.8 1.7
DAP Selling Price(4)
 $660 $785
Gross Margin (GAAP) per tonne $141 $318
Adjusted Gross Margin (non-GAAP) per tonne(1)
 $141 $318
Operating Earnings - millions $266 $493
Segment Adjusted EBITDA(1) - millions
 $382 $632
*Tonnes = finished product tonnes

Net sales in the Phosphate segment were $1.4 billion, down from $1.5 billion in the prior year period. Gross margin was $259 million, compared to $528 million for the same period a year ago, as lower pricing was somewhat offset by higher volumes. Gross margin per tonne was $141 compared to $318 in the prior-year period.
Production of finished phosphates totaled 1.8 million tonnes, up 5 percent year-over-year, and sales volumes totaled 1.8 million tonnes, up 11 percent year-over-year. Production has recovered from the disruptions that impacted operations in the second half of 2022.
Mosaic continued to benefit from its advantaged ammonia cost position during the first quarter. The price of ammonia realized in cost of goods sold averaged $605 per tonne, well below the $785 per tonne average first quarter spot price.
Sales volumes in the second quarter are expected to be 1.8-2.0 million tonnes with DAP prices on an FOB basis averaging $550-$600 per tonne. Lower raw material prices are expected to provide a sequential benefit in the second quarter.
Mosaic Fertilizantes Results Q1 2023 Q1 2022
Sales Volumes million tonnes* 2.1 1.8
Finished Product Selling Price $646 $817
Gross Margin (GAAP) per tonne $(1) $120
Adjusted Gross Margin (non GAAP) per tonne(1)
 $(1) $130
Operating Earnings - millions $(32) $187
Segment Adjusted EBITDA(1) - millions
 $3 $233
*Tonnes = finished product tonnes

Net sales in the Mosaic Fertilizantes segment were $1.3 billion, down from $1.5 billion in the prior year period. Gross margin was $(1) million, compared to $219 million for the same period a year ago, primarily as a result of a concerted effort to destock high-cost inventory in the distribution business. Gross margin per tonne was about breakeven in the first quarter, vs. $120 in the prior year period.
Destocking of high-cost raw materials in the production business and inventory in the distribution business is now largely complete and margins are expected to return to more normalized mid-cycle levels in the second quarter.




(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
(4)Average DAP Selling Price (fob plant)
3

Other
Selling, general, and administrative costs (SG&A) were $128 million, down from $132 million in the year-ago period. The effective tax rate during the quarter was 21.7 percent. The company expects an effective rate for full year 2023 in the mid-20 percent range under current tax laws and regulations.
Mosaic recognized earnings from equity investments of $31 million. In February, Mosaic received a $25 million dividend distribution from the MWSPC joint venture in Saudi Arabia.
In January of 2023, Mosaic divested Streamsong Resort for gross proceeds of $160 million.
Market Outlook
Grain and oilseed markets are expected to remain tight through 2023 and likely beyond. The disruption to Ukraine's agricultural production caused by war, coupled with reduced fertilization and sub-optimal weather in major growing regions like the Americas, Europe and China, threaten global agricultural production. This suggests that global stocks-to-use ratios, already projected at 25-year lows, will remain under pressure.

Historically elevated crop prices coupled with fertilizer pricing that has moderated from the post-Ukraine-invasion spike justifies a return to normal nutrient applications. In North America, sentiment has improved significantly from the second half of 2022, and spring nutrient application rates are trending toward normal levels. In Brazil, an attractive fertilizer-to-soybean barter ratio suggests a significant recovery in fertilizer shipments in 2023.

For both potash and phosphates, supply constraints remain. In potash, we expect annual shipments from Belarus will be down 5-6 million tonnes from pre-sanction export rates. In phosphates, China's exports are expected to see only a modest recovery from the recent lows in 2022 but remain well below shipments seen in 2021. In both phosphates and potash, the fundamental tightness in global markets is expected to persist well into 2023 and likely beyond.

4

2023 Expectations and Key Assumptions
The Company provides the following modeling assumptions for the full year 2023:
Modeling Assumptions Full Year 2023
Total Capital Expenditures $1.3 - 1.4 billion
Depreciation, Depletion & Amortization $830 - $850 million
Selling, General, and Administrative Expense $475 - $500 million
Net Interest Expense $170 - $180 million
Effective tax rate Mid 20’s %
Cash tax rate Low 20's %
Sensitivities Table
The Company provides the following sensitivities to price and foreign exchange rates to help investors anticipate the potential impact of movements in these factors. These sensitivities are based on 2022 actual realized pricing and sales volumes.
Sensitivity
Full year adj. EBITDA impact(1)
 2022 Actual
Average MOP Price / tonne (fob mine)(6)
$10/mt price change = $60 million (5)
 $632
Average DAP Price / tonne (fob plant)(6)
 $10/mt price change = $90 million $804
Average BRL / USD
0.10 change, unhedged = $10 million(7)
 5.16
(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.
(5) Includes impact of Canadian Resource Tax
(6) Approximately 20% of DAP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.; approximately 5% of the MOP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.
(7) The company hedged about 50 percent of the annual sensitivity. Over longer periods of time, inflation is expected to offset a portion of currency benefits.


5

About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.
Mosaic has posted prepared comments and related slides on its website, www.mosaicco.com/investors, concurrently with the posting of this release and performance data. In addition, the company will provide access to a fireside chat addressing questions on the quarter, current market conditions, and other topics on Thursday, May 4, 2023, at 11 am Eastern. The fireside chat will be available both on the website and via telephone at the following number: 412-902-6506, Conference ID: 4434358 . All earnings-related material, including audio, will be available up to one year from the time of the earnings call.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic’s international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa’ad Al Shamal Phosphate Company (also known as MWSPC), the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic’s decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic’s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management’s current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic’s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic’s potash mines; other accidents and disruptions involving Mosaic’s operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

###



6

Non-GAAP Financial Measures
This press release includes the presentation and discussion of non-GAAP diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA, adjusted gross margin referred to as non-GAAP financial measures and free cash flow. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because non-GAAP measures are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies. Adjusted metrics, including adjusted EPS and adjusted EBITDA are calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax. Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Free cash flow is defined as net cash provided by operating activities less capital expenditures, and adjusted for changes in working capital financing. Management believes that these adjusted measures provide securities analysts, investors, management and others with useful supplemental information regarding our performance by excluding and/or including certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes these adjusted measures in analyzing and assessing Mosaic’s overall performance and financial trends, for financial and operating decision-making, and to forecast and plan for future periods. These adjusted measures also assist our management in comparing our and our competitors' operating results. Reconciliations for current and historical periods beginning with the quarter ended June 30, 2021, for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted EBITDA and adjusted gross margin per tonne are provided in the Selected Calendar Quarter Financial Information performance data for the related periods. This information is being furnished under Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.com in the “Financial Information - Quarterly Earnings” section under the “Investors” tab.
7

For the three months ended March 31, 2023, the company reported the following notable items which, combined, positively impacted earnings per share by $0.14: 
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) $ 51  $ (12) $ 0.11 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (1) —  — 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (12) 3  (0.03)
Gain on sale of Streamsong Resort Phosphate Other operating income (expense) 57  (14) 0.13 
Realized gain (loss) on RCRA Trust Securities Phosphate Other non-operating income (expense) (8) 2  (0.02)
ARO Adjustment Phosphate Other operating income (expense) (20) 5  (0.04)
Environmental reserve Phosphate Other operating income (expense) (6) 1  (0.01)
Total Notable Items $ 61  $ (15) $ 0.14 
For the three months ended March 31, 2022, the company reported the following notable items which, combined, positively impacted earnings per share by $0.78: 
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) $ 311  $ (78) $ 0.62 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold 100  (25) 0.21 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (9) 3  (0.02)
FX functional currency Mosaic Fertilizantes Cost of goods sold (18) 5  (0.03)
Fixed asset write-off Phosphate Other operating income (expense) (4) 1  (0.01)
ARO Adjustment Potash Other operating income (expense) (9) 2  (0.02)
Discrete tax items Consolidated (Provision for) benefit from income taxes —  9  0.03 
Total Notable Items $ 371  $ (83) $ 0.78 
 
8

Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
 
The Mosaic Company    (unaudited)
 
Three months ended
  March 31,
  2023 2022
Net sales $ 3,604.3  $ 3,922.3 
Cost of goods sold 2,933.9  2,483.2 
Gross margin 670.4  1,439.1 
Selling, general and administrative expenses 127.7  132.4 
Other operating (income) expense (1.9) 50.9 
Operating earnings 544.6  1,255.8 
Interest expense, net (41.1) (39.3)
Foreign currency transaction gain 51.4  310.7 
Other income (expense) (8.9) 0.2 
Earnings from consolidated companies before income taxes 546.0  1,527.4 
Provision for income taxes 118.3  372.4 
Earnings from consolidated companies 427.7  1,155.0 
Equity in net earnings of nonconsolidated companies 31.3  30.7 
Net earnings including noncontrolling interests 459.0  1,185.7 
Less: Net earnings attributable to noncontrolling interests 24.2  3.7 
Net earnings attributable to Mosaic $ 434.8  $ 1,182.0 
Diluted net earnings per share attributable to Mosaic $ 1.28  $ 3.19 
Diluted weighted average number of shares outstanding 338.7  370.1 
9

Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
The Mosaic Company    (unaudited)
  March 31, 2023 December 31, 2022
Assets
Current assets:
Cash and cash equivalents $ 464.8  $ 735.4 
Receivables, net, including affiliate receivables of $35.7 and $291.5, respectively 1,426.3  1,699.9 
Inventories 3,320.0  3,543.1 
Other current assets 642.3  578.2 
Total current assets 5,853.4  6,556.6 
Property, plant and equipment, net of accumulated depreciation of $9,144.6 and $8,944.9, respectively 12,789.2  12,678.7 
Investments in nonconsolidated companies 879.8  885.9 
Goodwill 1,118.6  1,116.3 
Deferred income taxes 764.1  752.3 
Other assets 1,452.4  1,396.2 
Total assets $ 22,857.5  $ 23,386.0 
Liabilities and Equity
Current liabilities:
Short-term debt $ 854.6  $ 224.9 
Current maturities of long-term debt 980.4  985.3 
Structured accounts payable arrangements 544.3  751.2 
Accounts payable, including affiliate payables of $305.1 and $353.2, respectively 1,027.0  1,292.5 
Accrued liabilities 1,761.3  2,279.9 
Total current liabilities 5,167.6  5,533.8 
Long-term debt, less current maturities 2,408.9  2,411.9 
Deferred income taxes 1,012.5  1,010.1 
Other noncurrent liabilities 2,212.0  2,236.0 
Equity:
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2023 and December 31, 2022 —  — 
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 393,682,617 shares issued and 332,098,640 shares outstanding as of March 31, 2023, 391,964,464 shares issued and 339,071,423 shares outstanding as of December 31, 2022 3.3  3.4 
Capital in excess of par value —  — 
Retained earnings 13,996.5  14,203.4 
Accumulated other comprehensive loss (2,106.0) (2,152.2)
Total Mosaic stockholders' equity 11,893.8  12,054.6 
Noncontrolling interests 162.7  139.6 
Total equity 12,056.5  12,194.2 
Total liabilities and equity $ 22,857.5  $ 23,386.0 
10

 Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
The Mosaic Company    (unaudited)
  Three months ended
March 31,
  2023 2022
Cash Flows from Operating Activities:
Net cash provided by operating activities $ 149.0  $ 506.2 
Cash Flows from Investing Activities:
Capital expenditures (321.5) (290.5)
Purchases of available-for-sale securities - restricted (604.6) (57.8)
Proceeds from sale of available-for-sale securities - restricted 591.2  51.9 
Proceeds from sale of business 158.4  — 
Acquisition of business (41.0) — 
Other (3.9) (0.8)
Net cash used in investing activities (221.4) (297.2)
Cash Flows from Financing Activities:
Payments of short-term debt (3,127.9) (91.7)
Proceeds from issuance of short-term debt 3,356.5  112.5 
Payments of inventory financing arrangement —  (551.6)
Proceeds from inventory financing arrangement 400.8  701.9 
Payments of structured accounts payable arrangements (381.2) (462.5)
Proceeds from structured accounts payable arrangements 169.8  563.6 
Collections of transferred receivables 608.2  446.9 
Payments of transferred receivables (607.0) (375.6)
Payments of long-term debt (15.0) (14.1)
Repurchases of stock (456.0) (422.1)
Cash dividends paid (152.4) (40.6)
Other (4.8) 8.3 
Net cash used in financing activities (209.0) (125.0)
Effect of exchange rate changes on cash 4.3  31.1 
Net change in cash, cash equivalents and restricted cash (277.1) 115.1 
Cash, cash equivalents and restricted cash - beginning of period 754.1  786.3 
Cash, cash equivalents and restricted cash - end of period $ 477.0  $ 901.4 


11

Three months ended
March 31, 2023 March 31, 2022
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 $ 464.8  $ 881.9 
Restricted cash in other current assets 9.8  10.1 
Restricted cash in other assets 2.4  9.4 
Total cash, cash equivalents and restricted cash shown in the unaudited statements of cash flows $ 477.0  $ 901.4 
Reconciliation of Non-GAAP Financial Measures
Earnings Per Share Calculation
 
  Three months ended March 31,
  2023 2022
Net income attributable to Mosaic $ 434.8  $ 1,182.0 
Basic weighted average number of shares outstanding 335.4  366.1 
Dilutive impact of share-based awards 3.3  4.0 
Diluted weighted average number of shares outstanding 338.7  370.1 
Basic net income per share attributable to Mosaic $ 1.30  $ 3.23 
Diluted net income per share attributable to Mosaic $ 1.28  $ 3.19 
Notable items impact on net income per share attributable to Mosaic 0.14  0.78 
Adjusted diluted net income per share attributable to Mosaic $ 1.14  $ 2.41 


Free Cash Flow
Three months ended March 31,
  2023
Net cash provided by operating activities $ 149 
Capital expenditures (322)
Working capital financing(a)
 364 
Free cash flow $ 191 

(a) Includes net proceeds (payments) from inventory financing arrangements, structured accounts payable arrangements and commercial paper borrowings.





12

Adjusted EBITDA

Consolidated Earnings (in millions)
 Three months ended March 31,
  2023 2022
Consolidated net earnings attributable to Mosaic $ 435  $ 1,182 
Less: Consolidated interest expense, net (41) (40)
Plus: Consolidated depreciation, depletion and amortization 220  226 
Plus: Accretion expense 23  20 
Plus: Share-based compensation expense 12  16 
Plus: Consolidated provision for income taxes 118  372 
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends 6  31 
Plus: Notable items (66) (374)
Adjusted EBITDA $ 777  $ 1,451 

Three months ended
March 31, March 31,
Potash Earnings (in millions)
 2023 2022
Operating Earnings $ 402  $ 563 
Plus: Depreciation, Depletion and Amortization 70  77 
Plus: Accretion Expense 2  2 
Plus: Foreign Exchange Gain (Loss) 3  17 
Plus: Notable Items (3) (8)
Adjusted EBITDA $ 474  $ 651 

Three months ended
March 31, March 31,
Phosphates Earnings (in millions)
 2023 2022
Operating Earnings $ 266  $ 493 
Plus: Depreciation, Depletion and Amortization 116  120 
Plus: Accretion Expense 16  13 
Plus: Foreign Exchange Gain (Loss) (2) (7)
Plus: Dividends received from equity investment 25  — 
Less: Earnings (Loss) from Consolidated Noncontrolling Interests 25  4 
Plus: Notable Items (14) 17 
Adjusted EBITDA $ 382  $ 632 

13

Three months ended
March 31, March 31,
Mosaic Fertilizantes (in millions)
 2023 2022
Operating Earnings $ (32) $ 187 
Plus: Depreciation, Depletion and Amortization 32  25 
Plus: Accretion Expense 5  4 
Plus: Foreign Exchange Gain (Loss) 23  119 
Plus: Other Income (Expense) (1) (1)
Plus: Notable Items (24) (101)
Adjusted EBITDA $ 3  $ 233 

Three months ended
Potash Gross Margin (per tonne)
 March 31, March 31,
2023 2022
Gross margin / tonne $ 216  $ 323 
Notable items in gross margin / tonne —  — 
Adjusted gross margin / tonne $ 216  $ 323 
Three months ended
Phosphate Gross Margin (per tonne)
 March 31, March 31,
2023 2022
Gross margin / tonne $ 141  $ 318 
Notable items in gross margin / tonne —  — 
Adjusted gross margin / tonne $ 141  $ 318 
Three months ended
Mosaic Fertilizantes Gross Margin (per tonne)
 March 31, March 31,
2023 2022
Gross margin / tonne $ (1) $ 120 
Notable items in gross margin / tonne —  10 
Adjusted gross margin / tonne $ (1) $ 130 


14
EX-99.2 3 performancedataq12023-ex992.htm EX-99.2 - Q1 2023 PERFORMANCE DATA Document

Exhibit 99.2
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Consolidated data (in millions, except per share)
Diluted net earnings (loss) per share $ 1.14  $ 0.97  $ 1.76  $ 3.19  $ 2.85  $ 2.42  $ 1.52  $ 1.28 
Notable items impact on earnings per share(a)
 (0.03) (0.38) (0.19) 0.78  (0.79) (0.80) (0.22) 0.14 
Adjusted diluted net earnings per share(a)
 $ 1.17  $ 1.35  $ 1.95  $ 2.41  $ 3.64  $ 3.22  $ 1.74  $ 1.14 
Diluted weighted average # of shares outstanding 383.3  383.2  377.5  370.1  363.1  347.7  343.8  338.7 
Total Net Sales $ 2,801  $ 3,419  $ 3,841  $ 3,922  $ 5,373  $ 5,348  $ 4,481  $ 3,604 
Cost of goods sold 2,049  2,554  2,693  2,483  3,526  3,846  3,512  2,934 
Gross Margin $ 752  $ 865  $ 1,148  $ 1,439  $ 1,847  $ 1,502  $ 969  $ 670 
SG&A 108  98  123  133  108  124  133  127 
Other operating (income) expense(p)
160  65  55  50  65  224  136  (2)
Operating earnings $ 484  $ 702  $ 970  $ 1,256  $ 1,674  $ 1,154  $ 700  $ 545 
Interest expense, net (37) (48) (39) (40) (34) (31) (34) (41)
Consolidated foreign currency gain/(loss) 111  (100) (44) 311  (227) (61) 75  51 
Earnings from consolidated companies before income taxes 559  554  886  1,527  1,377  1,061  677  546 
Provision for (benefit from) income taxes 116  177  245  372  369  277  206  118 
Earnings (loss) from consolidated companies $ 443  $ 377  $ 641  $ 1,155  $ 1,008  $ 784  $ 471  $ 428 
Equity in net earnings (loss) of nonconsolidated companies (4) (1) 20  31  36  72  57  31 
Less: Net earnings (loss) attributable to noncontrolling interests 2  4  (4) 4  8  14  5  24 
Net earnings (loss) attributable to Mosaic $ 437  $ 372  $ 665  $ 1,182  $ 1,036  $ 842  $ 523  $ 435 
After tax Notable items included in earnings $ (10) $ (145) $ (73) $ 288  $ (286) $ (277) $ (75) $ 46 
Gross Margin Rate 27  % 25  % 30  % 37  % 34  % 28  % 22  % 19  %
Effective Tax Rate (including discrete tax) 21  % 32  % 28  % 24  % 27  % 26  % 30  % 22  %
Discrete Tax benefit (expense) $ 49  $ (19) $ (26) $ 9  $ (14) $ (12) $ (9) $ 14 
Depreciation, Depletion and Amortization $ 204  $ 186  $ 214  $ 226  $ 245  $ 229  $ 233  $ 220 
Accretion Expense $ 19  $ 18  $ 19  $ 20  $ 20  $ 19  $ 22  $ 23 
Share-Based Compensation Expense $ 4  $ 5  $ 6  $ 16  $ (1) $ 6  $ 6  $ 12 
Notable Items $ 8  $ 163  $ 59  $ (374) $ 361  $ 354  $ 84  $ (66)
Adjusted EBITDA(b)
 $ 829  $ 969  $ 1,227  $ 1,451  $ 2,028  $ 1,686  $ 1,051  $ 777 
Net cash provided by (used in) operating activities $ 1,015  $ 423  $ 431  $ 506  $ 1,585  $ 889  $ 956  $ 149 
Cash paid for interest (net of amount capitalized) 88  18  82  4  80  3  83  8 
Cash paid for income taxes (net of refunds) 36  54  36  259  233  253  370  226 
Net cash used in investing activities $ (271) $ (351) $ (392) $ (297) $ (265) $ (355) $ (343) $ (221)
Capital expenditures (297) (340) (363) (291) (263) (354) (341) (322)
Net cash (used in) provided by financing activities $ (82) $ (618) $ (107) $ (125) $ (1,331) $ (650) $ (573) $ (209)
Cash dividends paid (29) (28) (28) (41) (54) (51) (51) (152)
Effect of exchange rate changes on cash $ 69  $ (32) $ (5) $ 31  $ (33) $ (20) $ (8) $ 4 
Net change in cash and cash equivalents $ 731  $ (579) $ (72) $ 115  $ (44) $ (135) $ 32  $ (277)
Short-term debt $ —  $ —  $ 303  $ 481  $ 17  $ 201  $ 225  $ 855 
Long-term debt (including current portion) 4,463  3,995  3,979  3,977  3,960  3,959  3,397  3,389 
Cash & cash equivalents 1,418  843  770  882  839  703  735  465 
Net debt $ 3,045  $ 3,152  $ 3,512  $ 3,576  $ 3,138  $ 3,457  $ 2,887  $ 3,779 
Segment Contributions (in millions)
Phosphate $ 1,175  $ 1,281  $ 1,466  $ 1,496  $ 1,801  $ 1,577  $ 1,310  $ 1,382 
Potash 663  589  897  1,060  1,580  1,432  1,136  907 
Mosaic Fertilizantes 1,036  1,755  1,535  1,488  2,260  2,629  1,910  1,343 
Corporate and Other(c)
 (73) (206) (57) (122) (268) (290) 125  (28)
Total net sales $ 2,801  $ 3,419  $ 3,841  $ 3,922  $ 5,373  $ 5,348  $ 4,481  $ 3,604 
Phosphate $ 283  $ 326  $ 418  $ 493  $ 578  $ 131  $ 145  $ 266 
Potash 49  220  443  563  915  793  497  402 
Mosaic Fertilizantes 170  290  195  187  420  323  (20) (32)
Corporate and Other(c)
 (18) (134) (86) 13  (239) (93) 78  (91)
Consolidated operating earnings $ 484  $ 702  $ 970  $ 1,256  $ 1,674  $ 1,154  $ 700  $ 545 


Phosphate(d)
 1,982  1,836  1,813  1,661  1,675  1,651  1,571  1,836 
Potash(d)
 2,326  1,808  2,072  1,792  2,304  2,142  1,863  1,910 
Mosaic Fertilizantes 2,341  3,350  2,347  1,822  2,320  2,824  2,472  2,080 
Corporate and Other 427  292  432  370  533  221  466  420 
Total finished product tonnes sold ('000 tonnes)
 7,076  7,286  6,664  5,645  6,832  6,838  6,372  6,246 
Sales of Performance Products ('000 tonnes)(e)
 917  1,132  1,077  711  741  790  1,265  819 


The Mosaic Company - Phosphate Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales $ 1,175  $ 1,281  $ 1,466  $ 1,496  $ 1,801  $ 1,577  $ 1,310  $ 1,382 
Cost of Goods Sold 866  917  1,006  968  1,159  1,219  1,078  1,123 
Gross Margin $ 309  $ 364  $ 460  $ 528  $ 642  $ 358  $ 232  $ 259 
Notable Items Included in Gross Margin —  (17) (9) —  —  (9) (30) — 
Adjusted Gross Margin(b)
 $ 309  $ 381  $ 469  $ 528  $ 642  $ 367  $ 262  $ 259 
SG&A 10  7  15  8  10  8  15  10 
Other operating (income) expense 16  31  27  27  54  219  72  (17)
Operating Earnings $ 283  $ 326  $ 418  $ 493  $ 578  $ 131  $ 145  $ 266 
Plus: Depreciation, Depletion and Amortization 106  106  115  120  133  121  111  116 
Plus: Accretion Expense 10  13  13  13  14  13  15  16 
Plus: Foreign Exchange Gain (Loss) 8  6  (11) (7) —  3  (4) (2)
Plus: Other Income (Expense) 2  1  —  —  (24) 1  (9) — 
Plus: Dividends from equity investments —  —  —  —  —  —  —  25 
Less: Earnings (loss) from Consolidated Noncontrolling Interests 2  4  (3) 4  9  14  5  25 
Plus: Notables Items 1  31  33  17  66  226  95  (14)
Adjusted EBITDA(b)
 $ 408  $ 479  $ 571  $ 632  $ 758  $ 481  $ 348  $ 382 
Capital expenditures $ 150  $ 161  $ 187  $ 148  $ 157  $ 168  $ 159  $ 142 
Gross Margin $ / tonne of finished product $ 156  $ 198  $ 254  $ 318  $ 383  $ 217  $ 148  $ 141 
Adjusted Gross Margin $ / tonne of finished product $ 156  $ 208  $ 259  $ 318  $ 383  $ 222  $ 167  $ 141 
Gross margin as a percent of sales 26  % 28  % 31  % 35  % 36  % 23  % 18  % 19  %
Freight included in finished goods (in millions) $ 103  $ 96  $ 103  $ 90  $ 94  $ 98  $ 95  $ 96 
Idle/Turnaround costs (excluding notable items) $ 38  $ 33  $ 25  $ 31  $ 79  $ 79  $ 70  $ 42 
Operating Data
Sales volumes ('000 tonnes)(d)
DAP/MAP 880  907  907  917  814  824  844  1,022 
Performance & other products(f)
 971  812  813  659  780  750  640  740 
Other products(i)
 131  117  93  85  81  77  87  74 
Total Finished Product(d)
 1,982  1,836  1,813  1,661  1,675  1,651  1,571  1,836 
DAP selling price (fob plant)(r)
 $ 544  $ 605  $ 676  $ 785  $ 920  $ 809  $ 722  $ 660 
Average finished product selling price (destination)(g)
 $ 580  $ 681  $ 758  $ 877  $ 1,048  $ 924  $ 794  $ 717 
Production Volumes ('000 tonnes)
Total tonnes produced(h)
 1,827  1,738  1,857  1,745  1,636  1,664  1,602  1,836 
Operating Rate 73  % 70  % 75  % 70  % 66  % 67  % 65  % 74  %
Raw Materials
Ammonia used in production $ 256  $ 255  $ 287  $ 258  $ 236  $ 236  $ 243  $ 274 
% manufactured ammonia used in production 29  % 20  % 20  % 34  % 22  % 5  % 42  % 29  %
Sulfur used in production $ 824  $ 792  $ 848  $ 818  $ 764  $ 781  $ 745  $ 840 
% prilled sulfur used in production 18  % 21  % 17  % 11  % 5  % —  % 3  % 7  %
Realized costs ($/tonne)
Ammonia (tonne)(j)
 $ 382  $ 424  $ 463  $ 532  $ 591  $ 665  $ 653  $ 605 
Sulfur (long ton)(k)
 $ 172  $ 214  $ 229  $ 281  $ 385  $ 436  $ 348  $ 236 
Blended rock $ 60  $ 59  $ 64  $ 61  $ 64  $ 68  $ 78  $ 77 
Phosphate cash conversion costs, production / tonne(s)
 $ 68  $ 68  $ 71  $ 76  $ 86  $ 85  $ 96  $ 96 
Cash costs of U.S. mined rock/production tonne(t)
 $ 37  $ 41  $ 44  $ 50  $ 46  $ 41  $ 48  $ 58 
ARO cash spending (in millions) $ 33  $ 26  $ 26  $ 33  $ 28  $ 33  $ 43  $ 41 


MWSPC equity earnings (loss) $ (7) $ (1) $ 20  $ 31  $ 34  $ 72  $ 58  $ 31 
MWSPC total sales tonnes (DAP/MAP/NPK) 360  486  653  592  413  599  684  762 
Miski Mayo external sales revenue $ 18  $ 21  $ 18  $ 26  $ 21  $ 33  $ 38  $ 41 


The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales $ 663  $ 589  $ 897  $ 1,060  $ 1,580  $ 1,432  $ 1,136  $ 907 
Cost of Goods Sold 446  353  433  481  652  633  598  494 
Gross Margin $ 217  $ 236  $ 464  $ 579  $ 928  $ 799  $ 538  $ 413 
Notable Items Included in Gross Margin (15) —  —  —  —  —  —  — 
Adjusted Gross Margin(b)
 $ 232  $ 236  $ 464  $ 579  $ 928  $ 799  $ 538  $ 413 
SG&A 8  8  11  7  8  6  9  8 
Other operating (income) expense(p)
 160  8  10  9  5  —  32  3 
Operating Earnings $ 49  $ 220  $ 443  $ 563  $ 915  $ 793  $ 497  $ 402 
Plus: Depreciation, Depletion and Amortization 70  50  68  77  81  76  73  70 
Plus: Accretion Expense 4  2  2  2  2  2  2  2 
Plus: Foreign Exchange Gain (Loss) 28  (38) 3  17  (23) (19) 6  3 
Plus: Other Income (Expense) —  —  —  —  —  —  —  — 
Plus: Notable Items 134  38  1  (8) 23  19  19  (3)
Adjusted EBITDA(b)
 $ 285  $ 272  $ 517  $ 651  $ 998  $ 871  $ 597  $ 474 
Capital expenditures $ 98  $ 123  $ 92  $ 65  $ 67  $ 78  $ 72  $ 93 
Gross Margin $ / tonne of finished product $ 93  $ 131  $ 224  $ 323  $ 403  $ 373  $ 289  $ 216 
Adjusted Gross Margin $ / tonne of finished product $ 100  $ 131  $ 224  $ 323  $ 403  $ 373  $ 289  $ 216 
Gross margin as a percent of sales 33  % 40  % 52  % 55  % 59  % 56  % 47  % 46  %
Supplemental Cost Information
Canadian resource taxes $ 54  $ 57  $ 113  $ 157  $ 274  $ 258  $ 238  $ 121 
Royalties $ 10  $ 8  $ 15  $ 27  $ 32  $ 31  $ 24  $ 19 
Freight(l)
 $ 99  $ 60  $ 65  $ 70  $ 76  $ 55  $ 66  $ 80 
Idle/Turnaround costs (excluding notable items) $ 13  $ 36  $ 11  $ 15  $ 9  $ 13  $ 24  $ 22 
Operating Data
Sales volumes ('000 tonnes)(d)
MOP 2,064  1,547  1,870  1,532  2,045  1,952  1,707  1,696 
Performance & other products(m)
 252  202  187  243  245  178  143  201 
Other products(i)
 10  59  15  17  14  12  13  13 
Total Finished Product(d)
 2,326  1,808  2,072  1,792  2,304  2,142  1,863  1,910 
Crop Nutrients North America 1,117  642  610  618  727  439  594  739 
Crop Nutrients International 1,061  1,067  1,301  1,020  1,415  1,574  1,145  1,053 
Non-Agricultural 148  99  161  154  162  129  125  118 
Total Finished Product(d)
 2,326  1,808  2,072  1,792  2,304  2,142  1,863  1,910 
MOP selling price (fob mine)(u)
 $ 243  $ 290  $ 414  $ 582  $ 678  $ 666  $ 581  $ 421 
Average finished product selling price (destination)(g)
 $ 285  $ 326  $ 433  $ 591  $ 686  $ 669  $ 610  $ 475 
Production Volumes ('000 tonnes)
Production Volume 2,131  1,580  2,208  2,200  2,436  2,266  2,151  1,944 
Operating Rate 88  % 65  % 81  % 80  % 87  % 81  % 77  % 69  %
MOP cash costs of production including brine / production tonne(n)
 $ 62  $ 72  $ 71  $ 81  $ 78  $ 78  $ 76  $ 81 
ARO cash spending (in millions) $ 3  $ 7  $ 15  $ 18  $ 13  $ 11  $ 5  $ 3 
Average CAD / USD $ 1.229  $ 1.259  $ 1.261  $ 1.267  $ 1.276  $ 1.304  $ 1.358  $ 1.352 


The Mosaic Company - Mosaic Fertilizantes Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales $ 1,036  $ 1,755  $ 1,535  $ 1,488  $ 2,260  $ 2,629  $ 1,910  $ 1,343 
Cost of Goods Sold 852  1,423  1,313  1,269  1,810  2,281  1,882  1,344 
Gross Margin $ 184  $ 332  $ 222  $ 219  $ 450  $ 348  $ 28  $ (1)
Notable Items Included in Gross Margin (6) 3  23  (18) —  14  (1) — 
Adjusted Gross Margin(b)
 $ 190  $ 329  $ 199  $ 237  $ 450  $ 334  $ 29  $ (1)
SG&A 18  20  24  21  27  25  29  26 
Other operating (income) expense (4) 22  3  11  3  —  19  5 
Operating Earnings $ 170  $ 290  $ 195  $ 187  $ 420  $ 323  $ (20) $ (32)
Plus: Depreciation, Depletion and Amortization 24  26  28  25  27  28  45  32 
Plus: Accretion Expense 4  3  4  4  4  4  5  5 
Plus: Foreign Exchange Gain (Loss) 34  (40) (31) 119  (83) (66) 38  23 
Plus: Other Income (Expense) (2) (2) (1) (1) (1) (1) (1) (1)
Less: Earnings from Consolidated Noncontrolling Interests (1) —  —  —  (1) —  —  — 
Plus: Notable Items (28) 40  2  (101) 76  55  (38) (24)
Adjusted EBITDA(b)
 $ 203  $ 317  $ 197  $ 233  $ 444  $ 343  $ 29  $ 3 
Capital expenditures $ 44  $ 52  $ 81  $ 75  $ 39  $ 92  $ 100  $ 87 
Gross Margin $ / tonne of finished product $ 78  $ 99  $ 95  $ 120  $ 194  $ 123  $ 11  $ (1)
Adjusted Gross Margin $ / tonne of finished product $ 81  $ 98  $ 85  $ 130  $ 194  $ 118  $ 12  $ (1)
Gross margin as a percent of sales 18  % 19  % 14  % 15  % 20  % 13  % 1  % —  %
Idle/Turnaround costs (excluding notable items) $ 9  $ 16  $ 25  $ 9  $ 30  $ 44  $ 29  11 
Operating Data
Sales volumes ('000 tonnes)
Phosphate produced in Brazil 686  722  599  737  638  488  505  510 
Potash produced in Brazil 66  56  59  46  46  33  40  44 
Purchased nutrients for distribution(q)
 1,589  2,572  1,689  1,039  1,636  2,303  1,927  1,526 
Total Finished Product 2,341  3,350  2,347  1,822  2,320  2,824  2,472  2,080 
Sales of Performance Products ('000 tonnes)(e)
 299  584  375  155  290  574  473  211 
Brazil MAP price (Brazil production delivered price to third party) $ 589  $ 622  $ 765  $ 882  $ 1,021  $ 866  $ 663  $ 669 
Average finished product selling price (destination)(g)
$ 442  $ 524  $ 654  $ 817  $ 974  $ 931  $ 773  $ 646 
Production Volumes ('000 tonnes)
MAP 218  210  233  261  266  174  261  235 
TSP 127  130  102  131  129  85  82  106 
SSP 287  350  349  312  275  343  332  283 
DCP 117  130  124  127  85  114  126  108 
NPK 52  65  55  64  55  25  49  45 
Total phosphate tonnes produced 801  885  863  895  810  741  851  777 
MOP 92  97  97  94  38  69  100  82 
Phosphate operating rate 82  % 91  % 89  % 92  % 83  % 76  % 87  % 78  %
Potash operating rate 71  % 75  % 74  % 72  % 29  % 55  % 80  % 65  %
Realized Costs ($/tonne)
Ammonia/tonne $ 527  $ 640  $ 775  $ 1,145  $ 1,396  $ 1,267  $ 1,354  $ 1,150 


Sulfur (long ton) $ 177  $ 222  $ 251  $ 337  $ 384  $ 432  $ 402  $ 278 
Blended rock $ 80  $ 81  $ 83  $ 105  $ 102  $ 106  $ 106  $ 124 
Purchases ('000 tonnes)
DAP/MAP from Mosaic 96  62  89  102  102  30  38  146 
MicroEssentials® from Mosaic 418  344  243  248  448  370  205  277 
Potash from Mosaic/Canpotex 473  1,023  550  398  663  798  417  235 
Phosphate cash conversion costs in BRL, production / tonne(s)
  R$359  R$347  R$388  R$403  R$506  R$533  R$483  R$538
Potash cash conversion costs in BRL, production / tonne  R$1,076  R$986  R$1,059  R$1,296  R$2,285  R$1,591  R$1,176  R$1,455
Mined rock costs in BRL, cash produced / tonne  R$409  R$430  R$456  R$557  R$500  R$525  R$632  R$606
ARO cash spending (in millions) $ 5  $ 5  $ 5  $ 2  $ 4  $ 5  $ 11  $ 3 
Average BRL / USD $ 5.301  $ 5.225  $ 5.579  $ 5.235  $ 4.917  $ 5.244  $ 5.255  $ 5.196 



The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Net Sales and Gross Margin (in millions)
Segment income statement
Net Sales $ (73) $ (206) $ (57) $ (122) $ (268) $ (290) $ 125  $ (28)
Cost of Goods Sold (115) (139) (59) (235) (95) (287) (46) (27)
Gross Margin (Loss) $ 42  $ (67) $ 2  $ 113  $ (173) $ (3) $ 171  $ (1)
Notable items Included in Gross Margin 38  (26) (18) 100  (62) (76) 14  (1)
Adjusted Gross Margin (Loss)(b)
 $ 4  $ (41) $ 20  $ 13  $ (111) $ 73  $ 157  $ — 
SG&A 72  63  73  97  63  85  80  83 
Other operating (income) expense (12) 4  15  3  3  5  13  7 
Operating Earnings (Loss) $ (18) $ (134) $ (86) $ 13  $ (239) $ (93) $ 78  $ (91)
Plus: Depreciation, Depletion and Amortization 4  4  3  4  4  4  4  2 
Plus: Share-Based Compensation Expense 4  5  6  16  (1) 6  6  12 
Plus: Foreign Exchange Gain (Loss) 41  (28) (4) 182  (121) 21  34  27 
Plus: Other Income (Expense) 1  —  —  2  (11) (1) (53) (7)
Less: Earnings (Loss) from Consolidated Noncontrolling Interests —  —  —  —  —  —  —  — 
Plus: Notable Items (99) 54  23  (282) 196  54  8  (25)
Adjusted EBITDA(b)
 $ (67) $ (99) $ (58) $ (65) $ (172) $ (9) $ 77  $ (82)
Elimination of profit in inventory included in COGS $ (39) $ (60) $ (29) $ (76) $ (180) $ 104  $ 171  $ 20 
Unrealized gain (loss) on derivatives included in COGS $ 38  $ (26) $ (17) $ 100  $ (59) $ (76) $ 14  $ (1)
Operating Data
Sales volumes ('000 tonnes)
 427  292  432  370  533  221  466  420 
Sales of Performance Products ('000 tonnes) 28  13  12  1  14  9  6  — 
Average finished product selling price (destination)(g)
 $ 421  $ 466  $ 539  $ 597  $ 732  $ 720  $ 692  $ 636 
Purchases ('000 tonnes)
DAP/MAP from Mosaic —  —  —  —  —  6  47  — 
MicroEssentials® from Mosaic 5  1  4  15  —  15  1  16 
Potash from Mosaic/Canpotex 163  218  304  220  471  332  337  296 



The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
Q1 2023
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ 51  $ (12) $ 0.11 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (1) —  — 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (12) 3  (0.03)
Gain on sale of Streamsong Resort Phosphate Other operating income (expense) 57  (14) 0.13 
FX functional currency Mosaic Fertilizantes Cost of goods sold —  — 
Realized gain (loss) on RCRA Trust Securities Phosphate Other non-operating income (expense) (8) 2  (0.02)
ARO Adjustment Phosphate Other operating income (expense) (20) 5  (0.04)
Environmental reserve Phosphate Other operating income (expense) (6) 1  (0.01)
Total Notable Items $ 61  $ (15) $ 0.14 


Q4 2022
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ 75  $ (18) $ 0.16 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold 14  (4) 0.03 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (11) 3  (0.03)
FX functional currency Mosaic Fertilizantes Cost of goods sold (1) —  — 
Fixed asset write-off Phosphate Other operating income (expense) (6) 2  (0.01)
ARO Adjustment Potash Other operating income (expense) 3  (1) 0.01 
Discrete tax items Consolidated (Provision for) benefit from income taxes —  (9) (0.03)
Realized gain (loss) on RCRA Trust Securities Phosphates Other non-operating income (expense) (20) 5  (0.04)
Environmental reserve Phosphates Other operating income (expense) (44) 11  (0.09)
Hurricane Ian idle costs Phosphates Cost of goods sold (30) 8  (0.07)
Insurance proceeds Phosphates Other operating income (expense) 5  (1) 0.01 
Pension plan termination settlement Consolidated Other non-operating income (expense) (42) 10  (0.09)
Environmental reserve Potash Other operating income (expense) (28) 7  (0.06)
Lease termination and severance Corporate and Other Other operating income (expense) (4) 1  (0.01)
Total Notable Items $ (89) $ 14  $ (0.22)


Q3 2022
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ (61) $ 16  $ (0.13)
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (76) 20  (0.16)
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (12) 4  (0.02)
FX functional currency Mosaic Fertilizantes Cost of goods sold 14  (4) 0.03 
Discrete tax items Consolidated (Provision for) benefit from income taxes —  (12) (0.04)
ARO Adjustment Phosphates Other operating income (expense) (143) 36  (0.31)
Environmental reserve Phosphates Other operating income (expense) (71) 18  (0.15)
Hurricane Ian idle costs Phosphates Cost of goods sold (9) 2  (0.02)
Insurance proceeds Phosphates Other operating income (expense) 4  (1) 0.01 
ARO Adjustment Mosaic Fertilizantes Other operating income (expense) (3) 1  (0.01)
Total Notable Items $ (357) $ 80  $ (0.80)

Q2 2022
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ (227) $ 57  $ (0.47)
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (59) 15  (0.12)
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (9) 3  (0.03)
Discrete tax items Consolidated (Provision for) benefit from income taxes —  (14) (0.04)
Realized gain (loss) on RCRA Trust Securities Phosphates Other non-operating income (expense) (26) 7  (0.05)
Gain on sale of plant Mosaic Fertilizantes Other operating income (expense) 7  (2) 0.02 
ARO Adjustment Phosphates Other operating income (expense) (5) 1  (0.01)
Environmental reserve Phosphates Other operating income (expense) (30) 7  (0.06)
Write down of investment Corporate and Other Other non-operating income (expense) (12) 3  (0.02)
Inventory lower of cost or market Corporate and Other Cost of goods sold (3) 1  (0.01)
Total Notable Items $ (364) $ 78  $ (0.79)


Q1 2022
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ 311  $ (78) $ 0.62 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold 100  (25) 0.21 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (9) 3  (0.02)
FX functional currency Mosaic Fertilizantes Cost of goods sold (18) 5  (0.03)
Fixed asset write-off Phosphate Other operating income (expense) (4) 1  (0.01)
ARO Adjustment Potash Other operating income (expense) (9) 2  (0.02)
Discrete tax items Consolidated (Provision for) benefit from income taxes —  9  0.03 
Total Notable Items $ 371  $ (83) $ 0.78 
Q4 2021
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ (44) $ 11  $ (0.09)
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (18) 5  (0.03)
Closed and indefinitely idled facility costs Phosphates Other operating income (expense) (9) 3  (0.02)
Pre-acquisition reserve adjustment Mosaic Fertilizantes Other operating income (expense) 5  (2) 0.01 
Realized gain on RCRA Trust Securities Phosphates Other non-operating income (expense) (2) 1  — 
Discrete tax items Consolidated (Provision for) benefit from income taxes —  (26) (0.06)
ARO Adjustment Phosphates Other operating income (expense) (5) 1  (0.01)
FX functional currency Mosaic Fertilizantes Cost of goods sold 23  (6) 0.04 
Hurricane Ida recovery Phosphates Cost of goods sold/Other income (expense) (9) 2  (0.02)
ARO Adjustment Potash Other operating income (expense) (4) 1  (0.01)
Total Notable Items $ (63) $ (10) $ (0.19)


Q3 2021
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ (100) $ 25  $ (0.19)
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold (26) 6  (0.05)
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (11) 3  (0.03)
Pre-acquisition reserve adjustment Mosaic Fertilizantes Other operating income (expense) (3) 1  (0.01)
Discrete tax items Consolidated (Provision for) benefit from income taxes —  (19) (0.05)
ARO Adjustment Phosphate Other operating income (expense) (13) 3  (0.03)
FX functional currency Mosaic Fertilizantes Cost of goods sold 3  (1) 0.01 
Hurricane Ida recovery Phosphate Cost of goods sold/Other income (expense) (18) 5  (0.03)
Total Notable Items $ (168) $ 23  $ (0.38)

Q2 2021
Description Segment Line Item Amount
(in millions)		 Tax Effect(u)
(in millions)		 EPS Impact
(per basic share)
Foreign currency transaction gain (loss) Consolidated Foreign currency transaction gain (loss) $ 111  $ (27) $ 0.21 
Unrealized gain (loss) on derivatives Corporate and Other Cost of goods sold 38  (10) 0.08 
Closed and indefinitely idled facility costs Phosphate Other operating income (expense) (11) 3  (0.02)
Closed and indefinitely idled facility costs Potash Other operating income (expense) (4) 1  — 
Accelerated depreciation Potash Cost of goods sold (15) 4  (0.04)
Realized gain on RCRA Trust Securities Phosphate Other non-operating income (expense) 1  —  — 
Discrete tax items Consolidated (Provision for) benefit from income taxes —  6  0.01 
ARO Adjustment Phosphate Other operating income (expense) (3) 1  — 
FX functional currency Mosaic Fertilizantes Cost of goods sold (6) 1  (0.01)
Esterhazy closure costs Potash Restructuring (158) 43  (0.30)
Gain on sale of warehouse Corporate and Other Other operating income (expense) 20  (5) 0.04 
Total Notable Items $ (27) $ 17  $ (0.03)





Footnotes
 
(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 Sus-Terra sales tonnes.
(f)Includes MicroEssentials performance products.
(g)Average price of all finished products sold by Potash, Phosphate, Mosaic Fertilizantes and India/China.
(h)Includes crop nutrient dry concentrates and animal feed ingredients.
(i)Includes finished goods sales of feed and other products.
(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)Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.
(m)Includes K-Mag, and Aspire finished performance products.
(n)MOP cash costs of production are reflective of actual costs during the period excluding brine management costs, depreciation, depletion, accretion, carbon-based and Canadian resource tax, idle and turnaround costs. Total Production costs for MOP production excludes K-Mag costs, Aspire raw material costs and incremental Aspire operating costs.
(o)Excludes industrial and feed sales. Price has been calculated using the average monthly foreign exchange rate.
(p)Includes $158 million related to the closure of the Esterhazy K1 and K2 mine shafts in Q2 2021.
(q)Includes sales volumes of phosphate and potash nutrients purchased from other Mosaic segments and Canpotex.
(r)Includes intersegment sales.
(s)Total production costs less depreciation, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of finished phosphate production in the period. 
(t)Total production cost less depreciation/depletion, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of rock produced in the period.
(u)Tax impact is based on our expected annual effective rate.




The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Non-GAAP Financial Measures
In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Mosaic has presented in this Selected Calendar Quarter Financial Information certain non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including: Adjusted Diluted Net Earnings Per Share, Consolidated Adjusted EBITDA, Segment Adjusted EBITDA, and Adjusted Gross Margin. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Each of the non-GAAP financial measures we present is determined as described below.
The non-GAAP financial measures we present should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because these non-GAAP measures, as presented, are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies.
Adjusted Diluted Net Earnings Per Share
Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Notable items impact on diluted net 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. Management believes that adjusted diluted net earnings per share provides securities analysts, investors and others, in addition to management, with useful supplemental information regarding our performance by excluding certain items that may not be indicative of or are unrelated to our core operating results. Management utilizes adjusted diluted net earnings per share in analyzing and assessing Mosaic’s overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted net earnings per share also assists our management in comparing our and our competitors' operating results. Reconciliations of adjusted diluted net earnings per share to diluted net earnings per share for the periods presented are provided under “Consolidated Data” on the first page of this Selected Calendar Quarter Financial Information.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization, asset retirement obligation accretion, share-based compensation expense and provision for/(benefit from) income taxes less equity in net earnings (loss) of nonconsolidated companies, net of dividends. Consolidated Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. Consolidated Adjusted EBITDA is a non-GAAP financial measure that we provide to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Consolidated Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, consolidated Net Income (Loss) as a measure of operating performance. A reconciliation of Consolidated Net Income (Loss) to Consolidated Adjusted EBITDA is provided below.
(in millions)
 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023
Consolidated Net Income (Loss) $ 437  $ 372  $ 665  $ 1,182  $ 1,036  $ 842  $ 523  $ 435 
Less: Consolidated Interest Expense, Net (37) (48) (39) (40) (34) (31) (34) (41)
Plus: Consolidated Depreciation, Depletion & Amortization 204  186  214  226  245  229  233  220 
Plus: Accretion Expense 19  17  19  20  20  19  22  23 
Plus: Share-Based Compensation Expense (Benefit) 4  5  6  16  (1) 6  6  12 
Plus: Consolidated Provision for (Benefit from) Income Taxes 116  177  245  372  369  277  206  118 
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends (4) (1) 20  31  36  72  57  6 
Plus: Notable Items 8  163  59  (374) 361  354  84  (66)
Consolidated Adjusted EBITDA $ 829  $ 969  $ 1,227  $ 1,451  $ 2,028  $ 1,686  $ 1,051  $ 777 



Segment Adjusted EBITDA
Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization, plus asset retirement obligation accretion, plus foreign exchange gain (loss), plus other income (expense), plus dividends from equity investments, less equity earnings (loss) from noncontrolling interests. Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. We provide these non-GAAP financial measures because we believe they are relevant and useful to securities analysts, investors and others because they are part of our internal management reporting and planning process, and our management uses these measures to evaluate the operational performance and valuation of our segments. Management also uses these measures as a method of comparing segment, performance with that of its competitors. Segment Adjusted EBITDA should not be considered as alternatives to, or more meaningful than, segment Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, are the most directly comparable GAAP measures because we do not allocate taxes on a segment basis. Reconciliations of Segment Adjusted EBITDA to segment Operating Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.
Adjusted Gross Margin
Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management believes the adjusted measures provides security analysts, investors, management & others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes adjusted gross margin in analyzing and assessing Mosaic's overall performance for financial and operating decision-making and to forecast and plan for future periods.