The Mosaic Company Exhibit 99.2
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
Consolidated data (in millions, except per share) | | | | | | | | | | | | | | | | |
| Diluted net earnings per share | | $ | 0.97 |
| | $ | 0.80 |
| | $ | 1.08 |
| | $ | 0.45 |
| | $ | 0.44 |
| �� | $ | 0.73 |
| | $ | (0.03 | ) | | $ | 0.11 |
|
Notable items impact on earnings per share(a) | | 0.10 |
| | 0.10 |
| | 0.03 |
| | (0.17 | ) | | (0.16 | ) | | 0.59 |
| | (0.09 | ) | | (0.30 | ) |
Adjusted diluted net earnings per share(a) | | $ | 0.87 |
| | $ | 0.70 |
| | $ | 1.05 |
| | $ | 0.62 |
| | $ | 0.60 |
| | $ | 0.14 |
| | $ | 0.06 |
| | $ | 0.41 |
|
Diluted weighted average # of shares outstanding(b) | | 372.0 |
| | 367.9 |
| | 363.3 |
| | 356.0 |
| | 354.3 |
| | 353.2 |
| | 349.8 |
| | 351.5 |
|
| Total Net Sales | | $ | 2,379 |
| | $ | 2,139 |
| | $ | 2,488 |
| | $ | 2,106 |
| | $ | 2,163 |
| | $ | 1,674 |
| | $ | 1,675 |
| | $ | 1,952 |
|
| Gross Margin | | $ | 579 |
| | $ | 419 |
| | $ | 608 |
| | $ | 335 |
| | $ | 356 |
| | $ | 237 |
| | $ | 154 |
| | $ | 213 |
|
| As % of Sales | | 24 | % | | 20 | % | | 24 | % | | 16 | % | | 17 | % | | 14 | % | | 9 | % | | 11 | % |
| SG&A | | 91 |
| | 100 |
| | 89 |
| | 77 |
| | 95 |
| | 90 |
| | 73 |
| | 67 |
|
| Consolidated Foreign Currency Gain/(Loss) | | 47 |
| | 45 |
| | (16 | ) | | (49 | ) | | (41 | ) | | 88 |
| | 15 |
| | (33 | ) |
Effective Tax Rate(c) | | 7 | % | | 9 | % | | 16 | % | | 6 | % | | (10 | )% | | (13 | )% | | (136 | )% | | (245 | )% |
| Net Income (Loss) | | $ | 361 |
| | $ | 295 |
| | $ | 391 |
| | $ | 160 |
| | $ | 155 |
| | $ | 257 |
| | $ | (10 | ) | | $ | 39 |
|
| As % of Sales | | 15 | % | | 14 | % | | 16 | % | | 8 | % | | 7 | % | | 15 | % | | (1 | )% | | 2 | % |
Consolidated Adjusted EBITDA(d) | | $ | 656 |
| | $ | 539 |
| | $ | 674 |
| | $ | 459 |
| | $ | 389 |
| | $ | 295 |
| | $ | 218 |
| | $ | 247 |
|
| Short-term debt | | $ | 14 |
| | $ | 10 |
| | $ | 27 |
| | $ | 18 |
| | $ | 26 |
| | $ | 42 |
| | $ | 54 |
| | $ | 54 |
|
| Current maturities of long-term debt | | 41 |
| | 41 |
| | 57 |
| | 42 |
| | 42 |
| | 42 |
| | 42 |
| | 373 |
|
| Long-term debt, less current maturities | | 3,778 |
| | 3,775 |
| | 3,762 |
| | 3,738 |
| | 3,769 |
| | 3,774 |
| | 3,773 |
| | 3,450 |
|
| Cash & cash equivalents | | 2,375 |
| | 2,517 |
| | 2,210 |
| | 1,285 |
| | 1,276 |
| | 1,058 |
| | 1,059 |
| | 654 |
|
| Net | | $ | 1,458 |
| | $ | 1,309 |
| | $ | 1,636 |
| | $ | 2,513 |
| | $ | 2,561 |
| | $ | 2,800 |
| | $ | 2,810 |
| | $ | 3,223 |
|
| Cash flow from operations | | $ | 347 |
| | $ | 729 |
| | $ | 603 |
| | $ | 184 |
| | $ | 292 |
| | $ | 266 |
| | $ | 583 |
| | $ | 96 |
|
| Cash flow from investments | | (586 | ) | | (183 | ) | | (343 | ) | | (823 | ) | | (400 | ) | | (274 | ) | | (357 | ) | | (382 | ) |
| Cash flow from financing | | (284 | ) | | (300 | ) | | (597 | ) | | (126 | ) | | 130 |
| | (280 | ) | | (242 | ) | | (112 | ) |
| Effect of exchange rate changes on cash | | (73 | ) | | (103 | ) | | 30 |
| | (160 | ) | | (31 | ) | | 69 |
| | 18 |
| | (8 | ) |
| Net cash flow | | $ | (596 | ) | | $ | 143 |
| | $ | (307 | ) | | $ | (925 | ) | | $ | (9 | ) | | $ | (219 | ) | | $ | 2 |
| | $ | (406 | ) |
| Cash dividends paid | | $ | (94 | ) | | $ | (91 | ) | | $ | (98 | ) | | $ | (98 | ) | | $ | (97 | ) | | $ | (96 | ) | | $ | (96 | ) | | $ | (96 | ) |
| Operating Earnings | | | | | | | | | | | | | | | | |
| Potash | | $ | 229 |
| | $ | 204 |
| | $ | 259 |
| | $ | 66 |
| | $ | 113 |
| | $ | 86 |
| | $ | 18 |
| | $ | 7 |
|
| Phosphates | | 157 |
| | 190 |
| | 259 |
| | 157 |
| | 47 |
| | 18 |
| | 12 |
| | 6 |
|
| International Distribution | | 22 |
| | 3 |
| | 8 |
| | 44 |
| | 14 |
| | (4 | ) | | (11 | ) | | 50 |
|
Corporate and Other(e) | | (43 | ) | | (78 | ) | | (16 | ) | | (21 | ) | | 30 |
| | 64 |
| | (7 | ) | | 7 |
|
| Consolidated Operating Earnings | | $ | 365 |
| | $ | 319 |
| | $ | 510 |
| | $ | 246 |
| | $ | 204 |
| | $ | 164 |
| | $ | 12 |
| | $ | 70 |
|
Segment data (in millions, except per tonne) | | | | | | | | | | | | | | | | |
| Phosphates | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes)(f) | | 2,392 |
| | 2,297 |
| | 2,788 |
| | 2,049 |
| | 2,212 |
| | 2,206 |
| | 2,449 |
| | 2,521 |
|
Realized average DAP price/tonne(g) | | $ | 447 |
| | $ | 458 |
| | $ | 450 |
| | $ | 451 |
| | $ | 410 |
| | $ | 355 |
| | $ | 343 |
| | $ | 326 |
|
| Revenue | | $ | 1,212 |
| | $ | 1,172 |
| | $ | 1,385 |
| | $ | 1,032 |
| | $ | 1,031 |
| | $ | 909 |
| | $ | 976 |
| | $ | 930 |
|
| Segment Gross Margin | | $ | 231 |
| | $ | 222 |
| | $ | 296 |
| | $ | 199 |
| | $ | 121 |
| | $ | 65 |
| | $ | 100 |
| | $ | 101 |
|
| As % of Sales | | 19 | % | | 19 | % | | 21 | % | | 19 | % | | 12 | % | | 7 | % | | 10 | % | | 11 | % |
| Potash | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes)(f) | | 2,309 |
| | 2,027 |
| | 2,342 |
| | 1,626 |
| | 1,931 |
| | 1,546 |
| | 2,040 |
| | 2,208 |
|
Realized average MOP price/tonne(g) | | $ | 295 |
| | $ | 288 |
| | $ | 280 |
| | $ | 265 |
| | $ | 254 |
| | $ | 207 |
| | $ | 178 |
| | $ | 160 |
|
| Revenue | | $ | 763 |
| | $ | 653 |
| | $ | 730 |
| | $ | 492 |
| | $ | 572 |
| | $ | 394 |
| | $ | 457 |
| | $ | 428 |
|
| Segment Gross Margin | | $ | 327 |
| | $ | 242 |
| | $ | 295 |
| | $ | 97 |
| | $ | 155 |
| | $ | 98 |
| | $ | 53 |
| | $ | 40 |
|
| As % of Sales | | 43 | % | | 37 | % | | 40 | % | | 20 | % | | 27 | % | | 25 | % | | 12 | % | | 9 | % |
Segment Gross Margin (excluding CRT)(h) | | $ | 375 |
| | $ | 320 |
| | $ | 350 |
| | $ | 156 |
| | $ | 211 |
| | $ | 116 |
| | $ | 91 |
| | $ | 54 |
|
As % of Sales(h) | | 49 | % | | 49 | % | | 48 | % | | 32 | % | | 37 | % | | 30 | % | | 20 | % | | 13 | % |
| International Distribution | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes) | | 1,113 |
| | 976 |
| | 1,477 |
| | 2,046 |
| | 1,478 |
| | 1,268 |
| | 1,413 |
| | 2,212 |
|
Realized average selling price/tonne(g) | | $ | 427 |
| | $ | 444 |
| | $ | 427 |
| | $ | 400 |
| | $ | 407 |
| | $ | 365 |
| | $ | 374 |
| | $ | 380 |
|
| Revenue | | $ | 516 |
| | $ | 439 |
| | $ | 637 |
| | $ | 825 |
| | $ | 605 |
| | $ | 467 |
| | $ | 534 |
| | $ | 849 |
|
| Segment Gross Margin | | $ | 41 |
| | $ | 21 |
| | $ | 29 |
| | $ | 61 |
| | $ | 38 |
| | $ | 12 |
| | $ | 5 |
| | $ | 71 |
|
| As % of Sales | | 8 | % | | 5 | % | | 4 | % | | 7 | % | | 6 | % | | 3 | % | | 1 | % | | 8 | % |
The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | | | | | | | | | |
| Segment income statement | | | | | | | | | | | | | | | | |
| North America | | $ | 467 |
| | $ | 351 |
| | $ | 372 |
| | $ | 250 |
| | $ | 364 |
| | $ | 242 |
| | $ | 304 |
| | $ | 233 |
|
| International | | 296 |
| | 302 |
| | 358 |
| | 242 |
| | 208 |
| | 152 |
| | 153 |
| | 195 |
|
| Net Sales | | $ | 763 |
| | $ | 653 |
| | $ | 730 |
| | $ | 492 |
| | $ | 572 |
| | $ | 394 |
| | $ | 457 |
| | $ | 428 |
|
| Cost of Goods Sold | | 436 |
| | 411 |
| | 435 |
| | 395 |
| | 417 |
| | 296 |
| | 404 |
| | 388 |
|
| Gross Margin | | $ | 327 |
| | $ | 242 |
| | $ | 295 |
| | $ | 97 |
| | $ | 155 |
| | $ | 98 |
| | $ | 53 |
| | $ | 40 |
|
| As % of Sales | | 43 | % | | 37 | % | | 40 | % | | 20 | % | | 27 | % | | 25 | % | | 12 | % | | 9 | % |
| Canadian resource taxes | | 48 |
| | 78 |
| | 55 |
| | 59 |
| | 56 |
| | 18 |
| | 38 |
| | 14 |
|
Gross Margin (excluding CRT)(h) | | $ | 375 |
| | $ | 320 |
| | $ | 350 |
| | $ | 156 |
| | $ | 211 |
| | $ | 116 |
| | $ | 91 |
| | $ | 54 |
|
As % of Sales(h) | | 49 | % | | 49 | % | | 48 | % | | 32 | % | | 37 | % | | 30 | % | | 20 | % | | 13 | % |
Freight included in revenue & cost of goods sold (in millions)(i) | | $ | 69 |
| | $ | 47 |
| | $ | 47 |
| | $ | 34 |
| | $ | 56 |
| | $ | 46 |
| | $ | 69 |
| | $ | 55 |
|
| Net sales less freight | | $ | 694 |
| | $ | 606 |
| | $ | 683 |
| | $ | 458 |
| | $ | 516 |
| | $ | 348 |
| | $ | 388 |
| | $ | 373 |
|
| Cost of Goods Sold less freight | | $ | 367 |
| | $ | 364 |
| | $ | 388 |
| | $ | 361 |
| | $ | 361 |
| | $ | 250 |
| | $ | 335 |
| | $ | 333 |
|
| Segment Operating Earnings | | $ | 229 |
| | $ | 204 |
| | $ | 259 |
| | $ | 66 |
| | $ | 113 |
| | $ | 86 |
| | $ | 18 |
| | $ | 7 |
|
| Depreciation, Depletion and Amortization | | 87 |
| | 79 |
| | 82 |
| | 75 |
| | 75 |
| | 75 |
| | 79 |
| | 77 |
|
| Write-Down (Up) of Long-Lived Assets | | 57 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Adjusted EBITDA(j) | | $ | 373 |
| | $ | 283 |
| | $ | 341 |
| | $ | 141 |
| | $ | 188 |
| | $ | 161 |
| | $ | 97 |
| | $ | 84 |
|
Cost of Goods Sold Detail (in millions) | | | | | | | | | | | | | | | | |
| COGS additional detail | | | | | | | | | | | | | | | | |
| Canadian resource taxes | | $ | 48 |
| | $ | 78 |
| | $ | 55 |
| | $ | 59 |
| | $ | 56 |
| | $ | 18 |
| | $ | 38 |
| | $ | 14 |
|
| Royalties | | 8 |
| | 11 |
| | 9 |
| | 7 |
| | 6 |
| | 6 |
| | 5 |
| | 4 |
|
| Brine inflow expenses | | 47 |
| | 44 |
| | 45 |
| | 37 |
| | 39 |
| | 37 |
| | 42 |
| | 38 |
|
| Depreciation, depletion and amortization | | 87 |
| | 79 |
| | 82 |
| | 75 |
| | 75 |
| | 75 |
| | 79 |
| | 77 |
|
| Total | | $ | 190 |
| | $ | 212 |
| | $ | 191 |
| | $ | 178 |
| | $ | 176 |
| | $ | 136 |
| | $ | 164 |
| | $ | 133 |
|
| Operating Data | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes) | | | | | | | | | | | | | | | | |
Crop Nutrients North America(f) | | 912 |
| | 572 |
| | 641 |
| | 419 |
| | 794 |
| | 650 |
| | 983 |
| | 806 |
|
Crop Nutrients International(f) | | 1,228 |
| | 1,248 |
| | 1,544 |
| | 1,041 |
| | 991 |
| | 749 |
| | 905 |
| | 1,270 |
|
| Non-Agricultural | | 169 |
| | 207 |
| | 157 |
| | 166 |
| | 146 |
| | 147 |
| | 152 |
| | 132 |
|
Total(f) | | 2,309 |
| | 2,027 |
| | 2,342 |
| | 1,626 |
| | 1,931 |
| | 1,546 |
| | 2,040 |
| | 2,208 |
|
Production Volumes ('000 tonnes) | | | | | | | | | | | | | | | | |
| Production Volume | | 2,584 |
| | 2,451 |
| | 2,362 |
| | 1,749 |
| | 1,850 |
| | 2,018 |
| | 1,769 |
| | 1,662 |
|
Operating Rate(k) | | 91 | % | | 93 | % | | 90 | % | | 67 | % | | 70 | % | | 77 | % | | 67 | % | | 63 | % |
Realized prices (FOB plant, $/tonne) | | | | | | | | | | | | | | | | |
MOP - North America crop nutrients(g)(l) | | $ | 355 |
| | $ | 362 |
| | $ | 345 |
| | $ | 293 |
| | $ | 264 |
| | $ | 184 |
| | $ | 173 |
| | $ | 160 |
|
MOP - International(g) | | $ | 239 |
| | $ | 245 |
| | $ | 244 |
| | $ | 236 |
| | $ | 227 |
| | $ | 195 |
| | $ | 158 |
| | $ | 146 |
|
MOP - Average(g)(m) | | $ | 295 |
| | $ | 288 |
| | $ | 280 |
| | $ | 265 |
| | $ | 254 |
| | $ | 207 |
| | $ | 178 |
| | $ | 160 |
|
| Brine inflow cost/production tonne | | $ | 18 |
| | $ | 18 |
| | $ | 19 |
| | $ | 21 |
| | $ | 21 |
| | $ | 18 |
| | $ | 24 |
| | $ | 23 |
|
| Cash COGS/sales tonne | | $ | 97 |
| | $ | 97 |
| | $ | 103 |
| | $ | 135 |
| | $ | 116 |
| | $ | 98 |
| | $ | 104 |
| | $ | 108 |
|
Operating earnings/sales tonne(n) | | $ | 99 |
| | $ | 101 |
| | $ | 111 |
| | $ | 41 |
| | $ | 59 |
| | $ | 56 |
| | $ | 9 |
| | $ | 3 |
|
Adjusted EBITDA(j)/sales tonne(n) | | $ | 137 |
| | $ | 140 |
| | $ | 146 |
| | $ | 87 |
| | $ | 97 |
| | $ | 104 |
| | $ | 48 |
| | $ | 38 |
|
Potash CAPEX (in millions) | | $ | 141 |
| | $ | 95 |
| | $ | 88 |
| | $ | 119 |
| | $ | 130 |
| | $ | 113 |
| | $ | 98 |
| | $ | 99 |
|
The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | | | | | | | | | |
| Segment income statement | | | | | | | | | | | | | | | | |
| North America | | $ | 714 |
| | $ | 683 |
| | $ | 705 |
| | $ | 570 |
| | $ | 809 |
| | $ | 597 |
| | $ | 476 |
| | $ | 475 |
|
| International | | 498 |
| | 489 |
| | 680 |
| | 462 |
| | 222 |
| | 312 |
| | 500 |
| | 455 |
|
| Net Sales | | $ | 1,212 |
| | $ | 1,172 |
| | $ | 1,385 |
| | $ | 1,032 |
| | $ | 1,031 |
| | $ | 909 |
| | $ | 976 |
| | $ | 930 |
|
| Cost of Goods Sold | | 981 |
| | 950 |
| | 1,089 |
| | 833 |
| | 910 |
| | 844 |
| | 876 |
| | 829 |
|
| Gross Margin | | $ | 231 |
| | $ | 222 |
| | $ | 296 |
| | $ | 199 |
| | $ | 121 |
| | $ | 65 |
| | $ | 100 |
| | $ | 101 |
|
| As % of Sales | | 19 | % | | 19 | % | | 21 | % | | 19 | % | | 12 | % | | 7 | % | | 10 | % | | 11 | % |
Freight included in revenue & cost of goods sold (in millions) | | $ | 103 |
| | $ | 82 |
| | $ | 98 |
| | $ | 79 |
| | $ | 84 |
| | $ | 82 |
| | $ | 87 |
| | $ | 86 |
|
| Net sales less freight | | $ | 1,109 |
| | $ | 1,090 |
| | $ | 1,287 |
| | $ | 953 |
| | $ | 947 |
| | $ | 827 |
| | $ | 889 |
| | $ | 844 |
|
| Cost of Goods Sold less freight | | $ | 878 |
| | $ | 868 |
| | $ | 991 |
| | $ | 754 |
| | $ | 826 |
| | $ | 762 |
| | $ | 789 |
| | $ | 743 |
|
| Segment Operating Earnings | | $ | 157 |
| | $ | 190 |
| | $ | 259 |
| | $ | 157 |
| | $ | 47 |
| | $ | 18 |
| | $ | 12 |
| | $ | 6 |
|
| Depreciation, Depletion and Amortization | | 97 |
| | 94 |
| | 99 |
| | 96 |
| | 101 |
| | 99 |
| | 101 |
| | 84 |
|
| Write-Down (Up) of Long-Lived Assets | | — |
| | — |
| | — |
| | 10 |
| | — |
| | — |
| | 47 |
| | (4 | ) |
Adjusted EBITDA(j) | | $ | 254 |
| | $ | 284 |
| | $ | 358 |
| | $ | 263 |
| | $ | 148 |
| | $ | 117 |
| | $ | 160 |
| | $ | 86 |
|
| Operating Data | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes) | | | | | | | | | | | | | | | | |
| North America - DAP/MAP | | 837 |
| | 951 |
| | 895 |
| | 709 |
| | 1,049 |
| | 951 |
| | 738 |
| | 849 |
|
International - DAP/MAP(f) | | 882 |
| | 754 |
| | 1,224 |
| | 819 |
| | 595 |
| | 656 |
| | 1,022 |
| | 866 |
|
MicroEssentials®(f) | | 502 |
| | 440 |
| | 516 |
| | 389 |
| | 437 |
| | 468 |
| | 567 |
| | 658 |
|
| Feed and Other | | 171 |
| | 152 |
| | 153 |
| | 132 |
| | 131 |
| | 131 |
| | 122 |
| | 148 |
|
| Total | | 2,392 |
| | 2,297 |
| | 2,788 |
| | 2,049 |
| | 2,212 |
| | 2,206 |
| | 2,449 |
| | 2,521 |
|
Production Volumes ('000 tonnes) | | | | | | | | | | | | | | | | |
Total tonnes produced(o) | | 2,364 |
| | 2,299 |
| | 2,504 |
| | 2,434 |
| | 2,226 |
| | 2,205 |
| | 2,391 |
| | 2,461 |
|
| Operating Rate | | 81 | % | | 79 | % | | 86 | % | | 83 | % | | 76 | % | | 75 | % | | 82 | % | | 84 | % |
Realized prices ($/tonne) | | | | | | | | | | | | | | | | |
DAP (FOB plant)(g) | | $ | 447 |
| | $ | 458 |
| | $ | 450 |
| | $ | 451 |
| | $ | 410 |
| | $ | 355 |
| | $ | 343 |
| | $ | 326 |
|
Realized costs ($/tonne) | | | | | | | | | | | | | | | | |
Ammonia (tonne)(p) | | $ | 544 |
| | $ | 519 |
| | $ | 417 |
| | $ | 418 |
| | $ | 404 |
| | $ | 370 |
| | $ | 320 |
| | $ | 287 |
|
Sulfur (long ton)(q) | | $ | 154 |
| | $ | 145 |
| | $ | 161 |
| | $ | 151 |
| | $ | 146 |
| | $ | 130 |
| | $ | 112 |
| | $ | 93 |
|
| Blended rock | | $ | 58 |
| | $ | 61 |
| | $ | 61 |
| | $ | 61 |
| | $ | 60 |
| | $ | 60 |
| | $ | 65 |
| | $ | 60 |
|
Average Market prices ($/tonne) | | | | | | | | | | | | | | | | |
Ammonia (tonne)(r) | | $ | 625 |
| | $ | 497 |
| | $ | 462 |
| | $ | 454 |
| | $ | 412 |
| | $ | 322 |
| | $ | 311 |
| | $ | 259 |
|
Sulfur (long ton)(s) | | $ | 131 |
| | $ | 141 |
| | $ | 135 |
| | $ | 136 |
| | $ | 115 |
| | $ | 98 |
| | $ | 73 |
| | $ | 66 |
|
Natural Gas(t) | | $ | 3.9 |
| | $ | 2.8 |
| | $ | 2.7 |
| | $ | 2.7 |
| | $ | 2.2 |
| | $ | 2.0 |
| | $ | 2.2 |
| | $ | 2.8 |
|
| Full production conversion cost/production tonne | | $ | 90 |
| | $ | 91 |
| | $ | 83 |
| | $ | 89 |
| | $ | 100 |
| | $ | 90 |
| | $ | 85 |
| | $ | 81 |
|
Operating earnings/sales tonne(n) | | $ | 66 |
| | $ | 83 |
| | $ | 93 |
| | $ | 77 |
| | $ | 21 |
| | $ | 8 |
| | $ | 5 |
| | $ | 2 |
|
Adjusted EBITDA(j)/sales tonne(n) | | $ | 109 |
| | $ | 123 |
| | $ | 128 |
| | $ | 123 |
| | $ | 67 |
| | $ | 54 |
| | $ | 65 |
| | $ | 34 |
|
Phosphates CAPEX (in millions) | | $ | 98 |
| | $ | 129 |
| | $ | 128 |
| | $ | 118 |
| | $ | 153 |
| | $ | 112 |
| | $ | 90 |
| | $ | 89 |
|
The Mosaic Company - International Distribution Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
Net Sales and Gross Margin (in millions, except per tonne) | | | | | | | | | | | | | | | | |
| Segment income statement | | | | | | | | | | | | | | | | |
| Net Sales | | $ | 516 |
| | $ | 439 |
| | $ | 637 |
| | $ | 825 |
| | $ | 605 |
| | $ | 467 |
| | $ | 534 |
| | $ | 849 |
|
| Cost of Goods Sold | | 475 |
| | 418 |
| | 608 |
| | 764 |
| | 567 |
| | 455 |
| | 529 |
| | 778 |
|
| Gross Margin | | $ | 41 |
| | $ | 21 |
| | $ | 29 |
| | $ | 61 |
| | $ | 38 |
| | $ | 12 |
| | $ | 5 |
| | $ | 71 |
|
| As % of Sales | | 8 | % | | 5 | % | | 4 | % | | 7 | % | | 6 | % | | 3 | % | | 1 | % | | 8 | % |
| Per tonne | | $ | 37 |
| | $ | 21 |
| | $ | 19 |
| | $ | 30 |
| | $ | 26 |
| | $ | 9 |
| | $ | 3 |
| | $ | 32 |
|
| SG&A and Other Operating Expenses | | $ | 19 |
| | $ | 18 |
| | $ | 21 |
| | $ | 17 |
| | $ | 24 |
| | $ | 16 |
| | $ | 16 |
| | $ | 21 |
|
| Segment Operating Earnings (Loss) | | $ | 22 |
| | $ | 3 |
| | $ | 8 |
| | $ | 44 |
| | $ | 14 |
| | $ | (4 | ) | | $ | (11 | ) | | $ | 50 |
|
| Depreciation, Depletion and Amortization | | 2 |
| | 3 |
| | 5 |
| | 3 |
| | 3 |
| | 4 |
| | 4 |
| | 4 |
|
| Write-Down (Up ) of Long-Lived Assets | | 10 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
|
Adjusted EBITDA(j) | | $ | 34 |
| | $ | 6 |
| | $ | 13 |
| | $ | 47 |
| | $ | 17 |
| | $ | — |
| | $ | (7 | ) | | $ | 54 |
|
| Operating Data | | | | | | | | | | | | | | | | |
Sales volumes ('000 tonnes) | | | | | | | | | | | | | | | | |
| Total | | 1,113 |
| | 976 |
| | 1,477 |
| | 2,046 |
| | 1,478 |
| | 1,268 |
| | 1,413 |
| | 2,212 |
|
Realized prices ($/tonne) | | | | | | | | | | | | | | | | |
Average selling price (FOB destination)(u) | | $ | 456 |
| | $ | 444 |
| | $ | 427 |
| | $ | 400 |
| | $ | 407 |
| | $ | 365 |
| | $ | 374 |
| | $ | 380 |
|
Purchases ('000 tonnes) | | | | | | | | | | | | | | | | |
| DAP/MAP from Mosaic | | 214 |
| | 138 |
| | 363 |
| | 349 |
| | 137 |
| | 167 |
| | 505 |
| | 396 |
|
| MicroEssentials® from Mosaic | | 56 |
| | 125 |
| | 198 |
| | 155 |
| | 11 |
| | 101 |
| | 303 |
| | 303 |
|
| Potash from Mosaic/Canpotex | | 334 |
| | 249 |
| | 769 |
| | 556 |
| | 464 |
| | 360 |
| | 822 |
| | 473 |
|
International Distribution CAPEX (in millions) | | $ | 9 |
| | $ | 4 |
| | $ | 6 |
| | $ | 4 |
| | $ | 9 |
| | $ | 5 |
| | $ | 7 |
| | $ | 5 |
|
Working Capital (in millions)(v) | | $ | 186 |
| | $ | 145 |
| | $ | 149 |
| | $ | 105 |
| | $ | 109 |
| | $ | 84 |
| | $ | 28 |
| | $ | 10 |
|
Operating earnings (loss)/sales tonne(n) | | $ | 20 |
| | $ | 3 |
| | $ | 5 |
| | $ | 22 |
| | $ | 9 |
| | $ | (3 | ) | | $ | (8 | ) | | $ | 23 |
|
Adjusted EBITDA(j)/sales tonne(n) | | $ | 22 |
| | $ | 6 |
| | $ | 9 |
| | $ | 23 |
| | $ | 12 |
| | $ | — |
| | $ | (5 | ) | | $ | 24 |
|
The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
Net Sales and Gross Margin (in millions) | | | | | | | | | | | | | | | | |
| Segment income statement | | | | | | | | | | | | | | | | |
| Net Sales | | $ | (112 | ) | | $ | (125 | ) | | $ | (265 | ) | | $ | (243 | ) | | $ | (45 | ) | | $ | (96 | ) | | $ | (292 | ) | | $ | (255 | ) |
| Cost of Goods Sold | | (92 | ) | | (60 | ) | | (253 | ) | | (222 | ) | | (87 | ) | | (158 | ) | | (288 | ) | | (256 | ) |
| Gross Margin (Loss) | | $ | (20 | ) | | $ | (65 | ) | | $ | (12 | ) | | $ | (21 | ) | | $ | 42 |
| | $ | 62 |
| | $ | (4 | ) | | $ | 1 |
|
| Elimination of profit in inventory income (loss) included in COGS | | $ | 18 |
| | $ | (18 | ) | | $ | (34 | ) | | $ | 12 |
| | $ | 50 |
| | $ | 18 |
| | $ | (25 | ) | | $ | 20 |
|
| Unrealized gain (loss) on derivatives included in COGS | | $ | (31 | ) | | $ | (38 | ) | | $ | 27 |
| | $ | (22 | ) | | $ | 1 |
| | $ | 53 |
| | $ | 30 |
| | $ | (8 | ) |
| Segment Operating Earnings (Loss) | | $ | (43 | ) | | $ | (78 | ) | | $ | (16 | ) | | $ | (21 | ) | | $ | 30 |
| | $ | 64 |
| | $ | (7 | ) | | $ | 7 |
|
| Plus: Depreciation, Depletion and Amortization | | 7 |
| | 6 |
| | 5 |
| | 7 |
| | 7 |
| | 6 |
| | 5 |
| | 8 |
|
| Less: Unrealized gain (loss) on derivatives included in COGS | | (31 | ) | | (38 | ) | | 27 |
| | (22 | ) | | 1 |
| | 53 |
| | 30 |
| | (8 | ) |
Adjusted EBITDA(j) | | $ | (5 | ) | | $ | (34 | ) | | $ | (38 | ) | | $ | 8 |
| | $ | 36 |
| | $ | 17 |
| | $ | (32 | ) | | $ | 23 |
|
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Notable Items
|
| | | | | | | | | | | | | | |
| Q3 2016 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (32 | ) | | $ | (1 | ) | | $ | (0.10 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (8 | ) | | — |
| | (0.02 | ) |
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 2 |
| | 0.01 |
|
| Asset reserve adjustment | Phosphates | Other operating income (expense) | | 4 |
| | — |
| | 0.01 |
|
| New Wales water loss incident | Phosphates | Other operating income (expense) | | (60 | ) | | (2 | ) | | (0.18 | ) |
| Restructuring | Consolidated | Other operating income (expense) | | (8 | ) | | — |
| | (0.02 | ) |
| Total Notable Items | | | | $ | (104 | ) | | $ | (1 | ) | | $ | (0.30 | ) |
|
| | | | | | | | | | | | | | |
| Q2 2016 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | 15 |
| | $ | (1 | ) | | $ | 0.04 |
|
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | 30 |
| | (3 | ) | | 0.08 |
|
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | (5 | ) | | (0.01 | ) |
| Restructuring | Consolidated | Other operating income (expense) | | (11 | ) | | 1 |
| | (0.03 | ) |
| Prince Rupert write-off | Potash | Equity earnings | | (24 | ) | | 8 |
| | (0.05 | ) |
| Asset write-off | Phosphates | Other operating income (expense) | | (47 | ) | | 4 |
| | (0.12 | ) |
| Total Notable Items | | | | $ | (37 | ) | | $ | 4 |
| | $ | (0.09 | ) |
Note: The tax effect is calculated based on our estimated annual effective rate. Our tax rate is impacted by the mix of earnings in the jurisdictions in which we operate and a benefit associated with depletion. The tax effect of the Prince Rupert write-off includes an income tax component of 20.6% which is calculated based on the rate specific to those earnings, and an impact related to Canadian Resource Tax of 12.4%.
|
| | | | | | | | | | | | | | |
| Q1 2016 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | 88 |
| | $ | (14 | ) | | $ | 0.21 |
|
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | 53 |
| | (8 | ) | | 0.13 |
|
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 64 |
| | 0.18 |
|
| Carlsbad insurance proceeds | Potash | Other operating income (expense) | | 28 |
| | (4 | ) | | 0.07 |
|
| Total Notable Items | | | | $ | 169 |
| | $ | 38 |
| | $ | 0.59 |
|
|
| | | | | | | | | | | | | | |
| Q4 2015 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (41 | ) | | $ | 5 |
| | $ | (0.10 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | 1 |
| | — |
| | — |
|
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 6 |
| | 0.02 |
|
| ARO year-end adjustment | Potash | Other operating income (expense) | | (6 | ) | | 1 |
| | (0.02 | ) |
| ARO year-end adjustment | Phosphates | Other operating income (expense) | | (26 | ) | | 3 |
| | (0.06 | ) |
| Total Notable Items | | | | $ | (72 | ) | | $ | 15 |
| | $ | (0.16 | ) |
|
| | | | | | | | | | | | | | |
| Q3 2015 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (49 | ) | | $ | 8 |
| | $ | (0.12 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (22 | ) | | 4 |
| | (0.05 | ) |
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 3 |
| | 0.01 |
|
| Write-off of fixed assets | Phosphates | Other operating income (expense) | | (10 | ) | | 2 |
| | (0.02 | ) |
| Consumption tax refund | Potash | Cost of goods sold | | 6 |
| | (1 | ) | | 0.01 |
|
| Total Notable Items | | | | $ | (75 | ) | | $ | 16 |
| | $ | (0.17 | ) |
|
| | | | | | | | | | | | | | |
| Q2 2015 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | (16 | ) | | $ | 3 |
| | $ | (0.04 | ) |
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | 27 |
| | (5 | ) | | 0.06 |
|
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 10 |
| | 0.03 |
|
| Write down of equity investment | Corporate & Other | Other non-operating income (expense) | | (8 | ) | | — |
| | (0.02 | ) |
| Total Notable Items | | | | $ | 3 |
| | $ | 8 |
| | $ | 0.03 |
|
Note: For the loss on the write-down of an equity investment we recorded a full valuation allowance and therefore, there was no tax impact.
|
| | | | | | | | | | | | | | |
| Q1 2015 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | 45 |
| | $ | (8 | ) | | $ | 0.09 |
|
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (38 | ) | | 7 |
| | (0.08 | ) |
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 28 |
| | 0.08 |
|
| Sales tax refund | Phosphates | Other operating income (expense) | | 8 |
| | (1 | ) | | 0.02 |
|
| Remediation of a pre-combination environmental matter | Phosphates | Other income (expense) | | (6 | ) | | 1 |
| | (0.01 | ) |
| Total Notable Items | | | | $ | 9 |
| | $ | 27 |
| | $ | 0.10 |
|
|
| | | | | | | | | | | | | | |
| Q4 2014 |
| Description | Segment | Line Item | | Amount (in millions) | | Tax Effect(w) (in millions) | | EPS Impact (per share) |
| | | | | | | | | |
| Foreign currency transaction gain (loss) | Consolidated | Foreign currency transaction gain (loss) | | $ | 48 |
| | $ | (14 | ) | | $ | 0.09 |
|
| Unrealized gain (loss) on derivatives | Corporate & Other | Cost of goods sold | | (30 | ) | | 9 |
| | (0.06 | ) |
| Discrete tax items | Consolidated | Provision for (benefit from) income taxes | | | | 76 |
| | 0.20 |
|
| Adjustment to assets held for sale | International Distribution | Other operating income (expense) | | (10 | ) | | 3 |
| | (0.02 | ) |
| Loss on write-down of Carlsbad | Potash | Carlsbad restructuring expense | | (59 | ) | | 24 |
| | (0.09 | ) |
| Insurance proceeds | Potash | Other operating income (expense) | | 10 |
| | (3 | ) | | 0.02 |
|
| ARO year-end adjustment | Phosphates | Other operating income (expense) | | (22 | ) | | 6 |
| | (0.04 | ) |
| Total Notable Items | | | | $ | (63 | ) | | $ | 101 |
| | $ | 0.10 |
|
Note: The Carlsbad restructuring expense is considered a discrete item (defined as significant unusual or extraordinary) because it is recorded as a separate line item on financial statements which resulted in a tax rate of 41.4% for this item.
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) | For Q4 2014, diluted weighted average number of shares reflects the impact of shares subject to the forward contract for our contractual share repurchase obligations. |
| |
| (c) | Includes a discrete income tax benefit of approximately $100 million in Q4 2014, $28 million in Q1 2015, $10 million in Q2 2015, $3 million in Q3 2015, $6 million in Q4 2015, $64 million in Q1 2016, and $2 million in Q3 2016 and a discrete income tax expense of approximately $5 million in Q2 2016. |
| |
| (d) | The Company defines Consolidated Adjusted EBITDA, a Non-GAAP measure, as Consolidated Net Income excluding the effects of non-operational items, as further described in "Non-GAAP Reconciliations". |
| |
| (e) | Includes elimination of intersegment sales. |
| |
| (f) | Sales volumes include intersegment sales. |
| |
| (g) | FOB Plant, sales to unrelated parties. |
| |
| (h) | Gross margin (excluding CRT) is calculated as GAAP gross margin less Canadian resource taxes (CRT), and Gross margin (excluding CRT) As % of Sales is calculated as GAAP gross margin less CRT as a percentage of sales. Gross margin (excluding CRT) is a non-GAAP financial measure and Gross margin (excluding CRT) As % of Sales is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliations." |
| |
| (i) | Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales. |
| |
| (j) | The Company defines segment Adjusted EBITDA as the related segment's operating earnings plus depreciation, depletion and amortization plus write-off (up) of long-lived assets less unrealized mark-to-market gain (loss) on derivatives. Segment Adjusted EBITDA/sales tonne is calculated as the related segment's Adjusted EBITDA per sales tonne. Adjusted EBITDA presented on a segment basis is a Non-GAAP financial measure and segment EBITDA/sales tonne is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliation." |
| |
| (k) | Q4 2014 operating rate includes an additional 600 thousand metric tonnes of annual capacity from our Colonsay expansion. |
| |
| (l) | This price excludes industrial and feed sales. |
| |
| (m) | This price includes industrial and feed sales. |
| |
| (n) | Segment Operating Earnings/sales tonne is calculated for each segment as that segment’s Operating Earnings divided by sales tonnes. Segment Adjusted EBITDA/sales tonne is calculated for each segment as that segment’s Adjusted EBITDA divided by sales tonnes. |
| |
| (o) | Includes crop nutrient dry concentrates and animal feed ingredients. |
| |
| (p) | Amounts are representative of our average ammonia costs in cost of goods sold. |
| |
| (q) | Amounts are representative of our average sulfur cost in cost of goods sold. |
| |
| (r) | Three point quarterly average (Fertecon). |
| |
| (s) | Three point quarterly average (Green Markets). |
| |
| (t) | Three point quarterly average (NYMEX). |
| |
| (u) | Average price of all products sold by International Distribution. |
| |
| (v) | Calculated as current assets less current liabilities for the International Distribution segment. |
| |
| (w) | Tax impact is based on our expected annual effective tax rate. |
Note: MOP production costs 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.
The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
Non-GAAP Reconciliation
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, segment Adjusted EBITDA/sales tonne, Potash Gross Margin (excluding CRT), Potash Gross Margin (excluding CRT) As % of Sales and Potash Cash COGS/sales tonne. 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 foreign currency transaction gain/loss, net interest expense, unrealized mark-to-market gain/loss on derivatives, gain in the value of share repurchase agreements, equity earnings (loss) in non-consolidated companies, other income/expense, depreciation, depletion and amortization, write-off/(up) of long-lived assets and provision for/(benefit) from income taxes. 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 (Loss) Income to Consolidated Adjusted EBITDA is provided below.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions) | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
| Consolidated Net Income | | $ | 361 |
| | $ | 295 |
| | $ | 391 |
| | $ | 160 |
| | $ | 155 |
| | $ | 257 |
| | $ | (10 | ) | | $ | 39 |
|
| Less: | | | | | | | | | | | | | | | | |
| Consolidated Foreign Currency Gain (Loss) | | 47 |
| | 45 |
| | (16 | ) | | (49 | ) | | (41 | ) | | 88 |
| | 15 |
| | (33 | ) |
| Consolidated Interest Expense, Net | | (31 | ) | | (31 | ) | | (24 | ) | | (24 | ) | | (19 | ) | | (26 | ) | | (33 | ) | | (26 | ) |
| Consolidated Unrealized Mark-to-Market Gain (Loss) on Derivatives | | (31 | ) | | (38 | ) | | 27 |
| | (22 | ) | | 1 |
| | 53 |
| | 30 |
| | (8 | ) |
| Consolidated Equity Earnings (Loss) | | 7 |
| | (1 | ) | | 1 |
| | (1 | ) | | (1 | ) | | 3 |
| | (14 | ) | | (2 | ) |
| Consolidated Other Income (Expense) | | — |
| | (6 | ) | | 1 |
| | (2 | ) | | (2 | ) | | (1 | ) | | — |
| | — |
|
| Plus: | | | | | | | | | | | | | | | | |
| Consolidated Depreciation, Depletion & Amortization | | 193 |
| | 182 |
| | 191 |
| | 181 |
| | 186 |
| | 184 |
| | 189 |
| | 173 |
|
| Consolidated Write-Off (Up) of Long-Lived Assets | | 67 |
| | — |
| | 8 |
| | 10 |
| | — |
| | — |
| | 47 |
| | (4 | ) |
| Consolidated Provision for (Benefit from) Income Taxes | | 27 |
| | 31 |
| | 73 |
| | 10 |
| | (14 | ) | | (29 | ) | | (10 | ) | | (30 | ) |
Consolidated Adjusted EBITDA(d) | | $ | 656 |
| | $ | 539 |
| | $ | 674 |
| | $ | 459 |
| | $ | 389 |
| | $ | 295 |
| | $ | 218 |
| | $ | 247 |
|
Segment Adjusted EBITDA and Segment Adjusted EBITDA/sales tonne
Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings plus depreciation, depletion and amortization plus write-off (up) of long-lived assets less unrealized mark-to-market gain (loss) on derivatives. Segment EBITDA/sales tonne is calculated as the related segment's Adjusted EBITDA per sales tonne. 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 and segment Adjusted EBITDA/sales tonne should not be considered as alternatives to, or more meaningful than, segment Operating Earnings and segment Operating Earnings/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings and segment Operating Earnings/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 and segment Adjusted EBITDA/sales tonne to segment Operating Earnings and segment Operating Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.
Potash Cash COGS/sales tonne
For the Potash segment, Cash COGS/sales tonne is defined as cost of goods sold per sales tonne less depreciation, depletion, amortization, Canadian royalties and resource taxes and freight included in revenue and cost of goods sold. Cash COGS/sales tonne is provided to assist securities analysts, lenders and others in their comparisons of operational performance but should not be considered as an alternative to, or more meaningful than, Potash Cost of Goods Sold as a measure of operating performance. A reconciliation of Cash COGS/sales tonne to Potash Cost of Goods Sold is provided below.
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(in millions, except sales tonnes) | | Q4 2014 | | Q1 2015 | | Q2 2015 | | Q3 2015 | | Q4 2015 | | Q1 2016 | | Q2 2016 | | Q3 2016 |
| Potash Cost of Goods Sold | | $ | 436 |
| | $ | 411 |
| | $ | 435 |
| | $ | 395 |
| | $ | 417 |
| | $ | 296 |
| | $ | 404 |
| | $ | 388 |
|
| Less: | | | | | | | | | | | | | | | | |
Freight included in revenue & cost of goods sold(i) | | 69 |
| | 47 |
| | 47 |
| | 34 |
| | 56 |
| | 46 |
| | 69 |
| | 55 |
|
| Canadian resource taxes | | 48 |
| | 78 |
| | 55 |
| | 59 |
| | 56 |
| | 18 |
| | 38 |
| | 14 |
|
| Royalties | | 8 |
| | 11 |
| | 9 |
| | 7 |
| | 6 |
| | 6 |
| | 5 |
| | 4 |
|
| Potash Depreciation, Depletion & Amortization | | 87 |
| | 79 |
| | 82 |
| | 75 |
| | 75 |
| | 75 |
| | 79 |
| | 77 |
|
| Cash Cost of Goods Sold | | $ | 224 |
| | $ | 196 |
| | $ | 242 |
| | $ | 220 |
| | $ | 224 |
| | $ | 151 |
| | $ | 213 |
| | $ | 238 |
|
Sales tonnes (in thousands of mt) | | 2,309 |
| | 2,027 |
| | 2,342 |
| | 1,626 |
| | 1,931 |
| | 1,546 |
| | 2,040 |
| | 2,208 |
|
| Cash COGS/sales tonne | | $ | 97 |
| | $ | 97 |
| | $ | 103 |
| | $ | 135 |
| | $ | 116 |
| | $ | 98 |
| | $ | 104 |
| | $ | 108 |
|
Potash Gross Margin (excluding CRT) and Gross Margin (excluding CRT) as % of Sales
For the Potash segment, Segment Gross Margin (excluding CRT) is calculated as GAAP Segment Gross Margin less Canadian resource taxes (CRT), and Segment Gross Margin (excluding CRT) As % of Sales is calculated as GAAP Segment Gross Margin less CRT as a percentage of Sales. Segment Gross Margin (excluding CRT) and Segment Gross Margin (excluding CRT) As % of Sales provide measures that Mosaic believes enhance the reader’s ability to compare Mosaic’s Gross Margin with that of other peer companies which incur CRT expense and classify it in a manner differently than Mosaic does in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, Mosaic’s management believes that Mosaic’s presentation of Gross Margin (excluding CRT) and Gross Margin (excluding CRT) As % of Sales for Potash affords them greater transparency in assessing Mosaic’s financial performance for this segment against competitors. When measuring the performance of Mosaic’s Potash business, Mosaic management regularly utilizes gross margin before CRT. Reconciliations of Potash Segment Gross Margin (excluding CRT) to Segment Gross Margin and Segment Gross Margin (excluding CRT) As % of Sales to Gross Margin As % of Sales are provided under “Segment income statement” for the Potash Segment.
