Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 27, 2016 | |
Document And Entity Information [Abstract] | ||
Entity registrant name | MOSAIC CO | |
Trading symbol | MOS | |
Document type | 10-Q | |
Entity central index key | 1,285,785 | |
Amendment flag | false | |
Entity current reporting status | Yes | |
Entity voluntary filers | No | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document period end date | Sep. 30, 2016 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity well known seasoned issuer | Yes | |
Entity common stock shares outstanding | 350,238,549 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,952.2 | $ 2,105.5 | $ 5,300.7 | $ 6,732.1 |
Cost of goods sold | 1,738.9 | 1,770.2 | 4,696.6 | 5,369.7 |
Gross margin | 213.3 | 335.3 | 604.1 | 1,362.4 |
Selling, general and administrative expenses | 66.9 | 76.6 | 229.6 | 266.3 |
Other operating expense | 76.7 | 12.7 | 129.1 | 21.6 |
Operating earnings | 69.7 | 246 | 245.4 | 1,074.5 |
Interest expense, net | (25.5) | (24.2) | (85.2) | (79) |
Foreign currency transaction gain (loss) | (32.4) | (48.6) | 70.2 | (19.4) |
Other income (expense) | 0.5 | (1.1) | 0.3 | (14.5) |
Earnings from consolidated companies before income taxes | 12.3 | 172.1 | 230.7 | 961.6 |
Provision for (benefit from) income taxes | (30.1) | 10.1 | (68.7) | 113.4 |
Earnings from consolidated companies | 42.4 | 162 | 299.4 | 848.2 |
Equity in net earnings (loss) of nonconsolidated companies | (1.7) | (1.3) | (12.8) | (1.9) |
Net earnings including noncontrolling interests | 40.7 | 160.7 | 286.6 | 846.3 |
Less: Net earnings attributable to noncontrolling interests | 1.5 | 0.7 | 0.7 | 0.9 |
Net earnings attributable to Mosaic | $ 39.2 | $ 160 | $ 285.9 | $ 845.4 |
Basic net earnings per share attributable to Mosaic | $ 0.11 | $ 0.45 | $ 0.82 | $ 2.35 |
Basic weighted average number of shares outstanding | 350.1 | 354.3 | 350.4 | 360.5 |
Diluted net earnings per share attributable to Mosaic | $ 0.11 | $ 0.45 | $ 0.81 | $ 2.33 |
Diluted weighted average number of shares outstanding | 351.5 | 356 | 351.7 | 362.3 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings including noncontrolling interest | $ 40.7 | $ 160.7 | $ 286.6 | $ 846.3 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation, net of tax | (65.1) | (509.3) | 257.4 | (985.7) |
Net actuarial gain (loss) and prior service cost, net of tax | 1.7 | (1.6) | 5 | 3.6 |
Amortization of loss on interest rate swap, net of tax | 0.6 | 0.7 | 1.9 | 2 |
Net loss on marketable securities held in trust fund | (0.7) | 0 | (0.7) | 0 |
Other comprehensive income (loss) | (63.5) | (510.2) | 263.6 | (980.1) |
Comprehensive income (loss) | (22.8) | (349.5) | 550.2 | (133.8) |
Less: Comprehensive income (loss) attributable to noncontrolling interest | 1.3 | (2.2) | 2.9 | (4.2) |
Comprehensive income (loss) attributable to Mosaic | $ (24.1) | $ (347.3) | $ 547.3 | $ (129.6) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 653.5 | $ 1,276.3 |
Receivables, net | 512.4 | 675 |
Inventories | 1,500.1 | 1,563.5 |
Other current assets | 783.2 | 628.6 |
Total current assets | 3,449.2 | 4,143.4 |
Property, plant and equipment, net of accumulated depreciation | 9,230.6 | 8,721 |
Investments in nonconsolidated companies | 1,064.3 | 980.5 |
Goodwill | 1,651.6 | 1,595.3 |
Deferred income taxes | 789 | 691.9 |
Other assets | 1,078.5 | 1,257.4 |
Total assets | 17,263.2 | 17,389.5 |
Current liabilities: | ||
Short-term debt | 53.6 | 25.5 |
Current maturities of long-term debt | 372.8 | 41.7 |
Structured accounts payable arrangements | 223.7 | 481.7 |
Accounts payable | 486.9 | 520.6 |
Accrued liabilities | 802.4 | 977.5 |
Total current liabilities | 1,939.4 | 2,047 |
Long-term debt, less current maturities | 3,450.3 | 3,769.5 |
Deferred income taxes | 1,061.5 | 977.4 |
Other noncurrent liabilities | 937.7 | 1,030.6 |
Equity: | ||
Preferred stock, par value | 0 | 0 |
Capital in excess of par value | 19.3 | 6.4 |
Retained earnings | 11,045.4 | 11,014.8 |
Accumulated other comprehensive income (loss) | (1,231.5) | (1,492.9) |
Total Mosaic stockholders' equity | 9,836.7 | 9,531.8 |
Noncontrolling interests | 37.6 | 33.2 |
Total equity | 9,874.3 | 9,565 |
Total liabilities and equity | 17,263.2 | 17,389.5 |
Class A common stock | ||
Equity: | ||
Common stock, par value | 0 | 0 |
Class B common Stock | ||
Equity: | ||
Common stock, par value | 0 | 0 |
No class common stock | ||
Equity: | ||
Common stock, par value | $ 3.5 | $ 3.5 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accumulated depreciation | $ 5,603.5 | $ 5,038.9 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, authorized | 15,000,000 | 15,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Class A common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 0 | 194,203,987 |
Common stock, issued | 0 | 0 |
Common stock, outstanding | 0 | 0 |
Class B common Stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 0 | 87,008,602 |
Common stock, issued | 0 | 0 |
Common stock, outstanding | 0 | 0 |
No class common stock | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, issued | 388,171,874 | 387,697,547 |
Common stock, outstanding | 350,223,025 | 352,515,256 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net earnings including noncontrolling interest | $ 286.6 | $ 846.3 |
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 545.7 | 554.8 |
Deferred and other income taxes | (127.9) | (55.2) |
Equity in net loss (earnings) of nonconsolidated companies, net of dividends | 30.1 | 26.7 |
Accretion expense for asset retirement obligations | 30 | 23.7 |
Share-based compensation expense | 26.5 | 35.9 |
Loss on write-down of long-lived asset | 43.5 | 7.9 |
Unrealized (gain) loss on derivatives | (81.5) | 26.6 |
Loss on sale of fixed assets | 12.1 | 18.2 |
Other | 0.8 | 12.7 |
Changes in assets and liabilities, excluding effects of acquisition: | ||
Receivables, net | 122.1 | (59.1) |
Inventories | 158.5 | (42.8) |
Other current and noncurrent assets | 40.3 | (233.5) |
Accounts payable and accrued liabilities | (162.7) | 368.8 |
Other noncurrent liabilities | 20.8 | (10.3) |
Net cash provided by operating activities | 944.9 | 1,520.7 |
Cash Flows from Investing Activities | ||
Capital expenditures | (633.7) | (702.2) |
Purchases of available-for-sale securities - restricted | (734.4) | 0 |
Proceeds from sale of available-for-sale securities - restricted | 138.9 | 0 |
Restricted cash | 587.5 | (630) |
Proceeds from adjustment to acquisition of business | 0 | 47.9 |
Investments in nonconsolidated companies | (244) | (125) |
Investments in affiliate | (130) | 0 |
Return of investment from nonconsolidated companies | 0 | 54.4 |
Other | 3.3 | 6 |
Net cash used in investing activities | (1,012.4) | (1,348.9) |
Cash Flows from Financing Activities | ||
Payments of short-term debt | (333.7) | (297) |
Proceeds from issuance of short-term debt | 361.9 | 302.5 |
Payments of structured accounts payable arrangements | (603.7) | (311.4) |
Proceeds from structured accounts payable arrangements | 341.3 | 329.8 |
Payments of long-term debt | (43) | (58.4) |
Proceeds from issuance of long-term debt | 0 | 5.9 |
Proceeds from stock option exercises | 3.8 | 5.3 |
Repurchases of stock | (75) | (709.4) |
Cash dividends paid | (288.8) | (287.8) |
Other | 3.1 | (8.3) |
Net cash used in financing activities | (634.1) | (1,028.8) |
Effect of exchange rate changes on cash | 78.8 | (232.7) |
Net change in cash and cash equivalents | (622.8) | (1,089.7) |
Cash and cash equivalents - beginning of period | 1,276.3 | 2,374.6 |
Cash and cash equivalents - end of period | 653.5 | 1,284.9 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest (net of amount capitalized) | 66.6 | 68.1 |
Income taxes (net of refunds) | $ 24.7 | $ 186.5 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flow Parenthetical - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest costs | $ 27.6 | $ 25.9 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Shareholders Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income | Noncontrolling Interest |
Beginning balance at Dec. 31, 2014 | $ 10,720.6 | $ 3.7 | $ 4.2 | $ 11,168.9 | $ (473.7) | $ 17.5 |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2014 | 367.5 | |||||
Total comprehensive income (loss) | (22.3) | 1,000.4 | (1,019.2) | (3.5) | ||
Stock option exercises | 5.3 | 5.3 | ||||
Stock option exercises (in shares) | 0.6 | |||||
Stock based compensation | 27.9 | 27.9 | ||||
Repurchases of stock | (698.3) | $ (0.2) | (30.2) | (667.9) | ||
Repurchases of stock (in shares) | (15.6) | |||||
Dividends | (486.6) | (486.6) | ||||
Dividends for noncontrolling interests | (0.8) | (0.8) | ||||
Equity from noncontrolling interests | 20 | 20 | ||||
Tax shortfall related to share based compensation | (0.8) | (0.8) | ||||
Ending balance at Dec. 31, 2015 | 9,565 | $ 3.5 | 6.4 | 11,014.8 | (1,492.9) | 33.2 |
Common stock shares outstanding, ending balance (in shares) at Dec. 31, 2015 | 352.5 | |||||
Total comprehensive income (loss) | 550.2 | 285.9 | 261.4 | 2.9 | ||
Stock option exercises | 3.8 | 3.8 | ||||
Stock option exercises (in shares) | 0.5 | |||||
Stock based compensation | 19 | 19 | ||||
Repurchases of stock | (75) | (9.5) | (65.5) | |||
Repurchases of stock (in shares) | (2.8) | |||||
Dividends | (189.8) | (189.8) | ||||
Dividends for noncontrolling interests | (0.7) | (0.7) | ||||
Equity from noncontrolling interests | 2.2 | 2.2 | ||||
Tax shortfall related to share based compensation | (0.4) | (0.4) | ||||
Ending balance at Sep. 30, 2016 | $ 9,874.3 | $ 3.5 | $ 19.3 | $ 11,045.4 | $ (1,231.5) | $ 37.6 |
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2016 | 350.2 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Shareholders Equity (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.55 | $ 1.075 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Nature of Business | Organization and Nature of Business The Mosaic Company (" Mosaic ", and, with its consolidated subsidiaries, " we ", " us ", " our ", or the " Company ") produces and markets concentrated phosphate and potash crop nutrients. We conduct our business through wholly and majority owned subsidiaries as well as businesses in which we own less than a majority or a noncontrolling interest, including consolidated variable interest entities and investments accounted for by the equity method. We are organized into the following business segments: • Our Phosphates business segment owns and operates mines and production facilities in Florida which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana which produce concentrated phosphate crop nutrients. Included in the Phosphates segment is our 35% economic interest in a joint venture that owns the Miski Mayo Phosphate Mine in Peru and our 25% interest in the Ma'aden Wa'ad Al Shamal Phosphate Company (the " MWSPC ") a joint venture to develop, own and operate integrated phosphate production facilities in the Kingdom of Saudi Arabia. Once operational, we will market approximately 25% of the MWSPC production. • Our Potash business segment owns and operates potash mines and production facilities in Canada and the U.S. which produce potash-based crop nutrients, animal feed ingredients and industrial products. Potash sales include domestic and international sales. We are a member of Canpotex, Limited (" Canpotex "), an export association of Canadian potash producers through which we sell our Canadian potash outside the U.S. and Canada. • Our International Distribution business segment consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in several key non-U.S. countries, including Brazil, Paraguay, India and China. Our International Distribution segment serves as a distribution outlet for our Phosphates and Potash segments, but also purchases and markets products from other suppliers. Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, and debt expenses are included within Corporate, Eliminations and Other. See Note 15 of the Condensed Consolidated Financial Statements in this report for segment results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Statement Presentation and Basis of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements of Mosaic have been prepared on the accrual basis of accounting and in accordance with the requirements of the Securities and Exchange Commission (" SEC ") for interim financial reporting. As permitted under these rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States (" GAAP ") can be condensed or omitted. The Condensed Consolidated Financial Statements included in this document reflect, in the opinion of our management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The following notes should be read in conjunction with the accounting policies and other disclosures in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2015 (the " 10-K Report "). Sales, expenses, cash flows, assets and liabilities can and do vary during the year as a result of seasonality and other factors. Therefore, interim results are not necessarily indicative of the results to be expected for the full fiscal year. The accompanying Condensed Consolidated Financial Statements include the accounts of Mosaic, its majority owned subsidiaries, and certain variable interest entities in which Mosaic is the primary beneficiary. Certain investments in companies where we do not have control but have the ability to exercise significant influence are accounted for by the equity method. Accounting Estimates Preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. The most significant estimates made by management relate to the estimates of fair value of acquired assets and liabilities, the recoverability of non-current assets including goodwill, the useful lives and net realizable values of long-lived assets, environmental and reclamation liabilities including asset retirement obligations (" ARO "), the costs of our employee benefit obligations for pension plans and postretirement benefits, income tax related accounts, including the valuation allowance against deferred income tax assets, inventory valuation and accruals for pending legal and environmental matters. Actual results could differ from these estimates. |
Recently Issued Accounting Guid
Recently Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In April 2015, the Financial Accounting Standards Board (" FASB ") issued guidance which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the associated debt liability, consistent with the presentation of a debt discount. In August 2015, the FASB issued additional guidance which clarified that an entity may defer and present debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortize those costs ratably over the term of the arrangement, regardless of whether there are any outstanding borrowings on it. This guidance became effective for us beginning January 1, 2016 and has been implemented retroactively. Accordingly, we reclassified $22.9 million of deferred financing fees against outstanding long-term debt accounts within the December 31, 2015 balance sheet. Our deferred financing fees of $2.9 million related to our revolving credit facility will remain recorded as an asset. In March 2016, the FASB issued guidance which simplifies several aspects of the accounting for share-based payment transactions, including certain income tax consequences, classifications on the statement of cash flows, and accounting for forfeitures. The guidance is effective for us beginning January 1, 2017, and early application is permitted. We adopted this standard in the second quarter of 2016 with an effective date of January 1, 2016. The effect of this adoption was not significant to our consolidated balance sheets, statements of earnings or statements of cash flows. Pronouncements Issued But Not Yet Adopted In May 2014, the FASB issued guidance addressing how revenue is recognized from contracts with customers and related disclosures. This standard supersedes existing revenue recognition requirements and most industry-specific guidance. This standard was initially expected to be effective for us beginning January 1, 2017, and provides for either full retrospective adoption or a modified retrospective adoption by which the cumulative effect of the change is recognized in retained earnings at the date of initial application. In July 2015, the FASB approved the deferral of the effective date of this standard by one year, and allows for adoption either at January 1, 2017 or January 1, 2018. We intend to elect the deferred adoption date of January 1, 2018. We are currently evaluating the requirements of this guidance, and have not yet determined the implementation method nor the impact on our consolidated financial statements. In January 2016, the FASB issued guidance which addresses certain aspects of recognition, measurement, presentation, and disclosure of financial instruments. This guidance is effective for us beginning January 1, 2018, and early adoption is not permitted. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. In February 2016, the FASB issued guidance which requires recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This guidance is effective for us beginning January 1, 2019, with early adoption permitted. The provisions of this guidance are to be applied using a modified retrospective approach, which requires application of the guidance for all periods presented. We are currently evaluating the impact that this guidance will have on our consolidated financial statements. |
Other Financial Statement Data
Other Financial Statement Data | 9 Months Ended |
Sep. 30, 2016 | |
Other Financial Statement Data [Abstract] | |
Other Financial Statement Data | Other Financial Statement Data The following provides add i tional information concerning selected balance sheet accounts: September 30, December 31, Other current assets Final price deferred (a) $ 97.0 $ 175.6 Income and other taxes receivable 256.5 249.4 Prepaid expenses 135.3 123.1 Restricted cash (b) 207.8 9.3 Other 86.6 71.2 $ 783.2 $ 628.6 Other assets MRO inventory $ 117.8 $ 118.1 Marketable securities held in trust (c) 602.1 — Restricted cash (c) 58.1 851.4 Other 300.5 287.9 $ 1,078.5 $ 1,257.4 Accrued liabilities Non-income taxes $ 38.2 $ 24.9 Payroll and employee benefits 155.7 162.9 Asset retirement obligations 121.6 91.9 Customer prepayments 186.7 121.2 Future capital commitment — 120.0 Other 300.2 456.6 $ 802.4 $ 977.5 Other noncurrent liabilities Asset retirement obligations $ 730.1 $ 749.7 Accrued pension and postretirement benefits 61.4 69.6 Unrecognized tax benefits 23.5 79.2 Other 122.7 132.1 $ 937.7 $ 1,030.6 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as risk of loss has passed to our customers. Amounts in this account are based on inventory cost. (b) Included in restricted cash, as of September 30, 2016 , is approximately $200 million held in trust, which is expected to be returned to us in the fourth quarter of 2016. See further discussion in Note 10 of our Notes to Condensed Consolidated Financial Statements. (c) Included in restricted cash, as of December 31, 2015 , was approximately $630 million that was committed to be placed in trust following the effectiveness of the consent decrees discussed under "EPA RCRA Initiative" in Note 10 of our Notes to Condensed Consolidated Financial Statements and that was placed in trusts in August 2016 after the consent decrees became effective. The funds have been invested in marketable securities as discussed in Note 9 of our Condensed Consolidated Financial Statements. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The numerator for basic and diluted earnings per share (" EPS ") is net earnings attributable to Mosaic. The denominator for basic EPS is the weighted average number of shares outstanding during the period. The denominator for diluted EPS also includes the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued, unless the shares are anti-dilutive. The following is a reconciliation of the numerator and denominator for the basic and diluted EPS computations: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net earnings attributable to Mosaic $ 39.2 $ 160.0 $ 285.9 $ 845.4 Basic weighted average number of shares outstanding 350.1 354.3 350.4 360.5 Dilutive impact of share-based awards 1.4 1.7 1.3 1.8 Diluted weighted average number of shares outstanding 351.5 356.0 351.7 362.3 Basic net earnings per share attributable to Mosaic $ 0.11 $ 0.45 $ 0.82 $ 2.35 Diluted net earnings per share attributable to Mosaic $ 0.11 $ 0.45 $ 0.81 $ 2.33 A total of 2.6 million and 3.0 million shares of Common Stock subject to issuance upon exercise of stock options for the three and nine months ended September 30, 2016 and 1.6 million and 1.3 million shares for the three and nine months ended September 30, 2015 , respectively, have been excluded from the calculation of diluted EPS as the effect would have been anti-dilutive. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the nine months ended September 30, 2016 , gross unrecognized tax benefits decreased by $74.4 million to $24.2 million as a result of the resolution of audit activity. If recognized, approximately $8.0 million of the $24.2 million in unrecognized tax benefits would affect our effective tax rate and net earnings in future periods. We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax provision. We had accrued interest and penalties totaling $1.7 million and $17.1 million as of September 30, 2016 and December 31, 2015 , respectively, that were included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets. For the three months ended September 30, 2016 , tax expense specific to the period included a benefit of $1.6 million , which primarily related to distributions from certain non-U.S. subsidiaries. For the nine months ended September 30, 2016 , tax expense specific to the period included a benefit of $60.7 million , which includes a domestic benefit of $85.8 million related to the resolution of an Advanced Pricing Agreement, which is a tax treaty-based process, partially offset by a $17.9 million expense related to distributions from certain non-U.S. subsidiaries and $7.2 million of expense primarily related to changes in estimates from prior periods. For the three and nine months ended September 30, 2016 , our income tax rate was favorably impacted by the mix of earnings across the jurisdictions in which we operate and by a benefit associated with depletion when compared to the three and nine months ended September 30, 2015 . Our income tax rate is lower in 2016 compared to 2015 because our deductions are relatively fixed in dollars, while our profitability has been reduced; therefore, the deductions are a larger percentage of income. In addition, for the three months ended September 30, 2016 , the benefit from income taxes was favorably impacted by approximately $28 million from the cumulative adjustment resulting from the change in our estimated annual tax rate. For the nine months ended September 30, 2015 , tax expense specific to the period included a benefit of $40.5 million , which included a benefit of $18.4 million related to the resolution of certain state tax matters, a benefit of $14.6 million primarily related to changes in estimates associated with an Advanced Pricing Agreement, and a reduction in the tax rate change for one of our equity method investments, resulting in a benefit of $7.5 million . |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Raw materials $ 51.6 $ 68.1 Work in process 366.0 435.9 Finished goods 1,003.9 991.0 Operating materials and supplies 78.6 68.5 $ 1,500.1 $ 1,563.5 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill, by reporting unit, are as follows: Phosphates Potash International Distribution Total Balance as of December 31, 2015 $ 492.4 $ 984.7 $ 118.2 $ 1,595.3 Foreign currency translation — 49.4 6.9 56.3 Balance as of September 30, 2016 $ 492.4 $ 1,034.1 $ 125.1 $ 1,651.6 We review goodwill for impairment annually in October or at any time events or circumstances indicate that the carrying value may not be fully recoverable, which is based on our accounting policy and GAAP. We continue to monitor events and circumstances in 2016 and we do not believe there has been a triggering event that would indicate it is more likely than not that a goodwill impairment loss has been incurred, although declining selling prices and forecasted selling prices have likely reduced the excess fair value in our reporting units. |
Marketable Securities Held in T
Marketable Securities Held in Trusts | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities Held in Trusts | Marketable Securities Held in Trusts In August 2016, Mosaic deposited $630 million into two trust funds (together, the " RCRA Trusts ") created to provide additional financial assurance for the estimated costs of closure and long term care of our Florida and Louisiana phosphogypsum management systems, as described further in Note 10 of our Notes to Condensed Consolidated Financial Statements. Funds held in each RCRA Trust can be drawn by the applicable governmental authority in the event we cannot perform our closure and long term care obligations. Our actual Gypstack Closure Costs are generally expected to be paid by us in the normal course of our Phosphates business. The investments held by the RCRA Trusts are managed by independent investment managers with discretion to buy, sell, and invest pursuant to the objectives and standards set forth in the related trust agreements. The RCRA Trusts hold investments in marketable debt securities classified as available-for-sale and are carried at fair value. As a result, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is impaired on an other-than-temporary basis. There were no other-than-temporary impairment write-downs on available-for-sale securities during the three and nine months ended September 30, 2016 . We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. We determine the fair market values of our available-for-sale securities and certain other assets based on the fair value hierarchy described below: Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The estimated fair value of the investments in the RCRA Trusts is as follows: September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 27.9 $ — $ — $ 27.9 Level 2 Corporate debt securities 203.5 — (0.4 ) 203.1 Municipal bonds 138.1 0.1 (0.4 ) 137.8 U.S. government bonds 258.4 0.1 (0.1 ) 258.4 Total $ 627.9 $ 0.2 $ (0.9 ) $ 627.2 There were no investments in available-for-sale securities as of December 31, 2015 . The following table shows the gross unrealized losses and fair values of the RCRA Trusts' available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary as of September 30, 2016 . September 30, 2016 Less than 12 months (a) Fair Value Gross Unrealized Losses Corporate debt securities $ 135.8 $ (0.4 ) Municipal bonds 45.9 (0.4 ) U.S. government bonds 218.6 (0.1 ) Total $ 400.3 $ (0.9 ) (a) Represents the aggregate of the gross unrealized losses that have been in a continuous unrealized loss position as of September 30, 2016 . The following table summarizes the balance by contractual maturity of the available-for-sale debt securities invested by the RCRA Trusts as of September 30, 2016 . Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations before the underlying contracts mature. September 30, 2016 Due in one year or less $ 82.3 Due after one year through five years 151.0 Due after five years through ten years 354.3 Due after ten years 11.7 Total debt securities $ 599.3 Realized losses, which were determined on a specific identification basis, were $0.1 million for the three and nine months ended September 30, 2016 , respectively. Realized gains were immaterial for the three and nine months ended September 30, 2016 . |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We have described below judicial and administrative proceedings to which we are subject. We have contingent environmental liabilities that arise principally from three sources: (i) facilities currently or formerly owned by our subsidiaries or their predecessors; (ii) facilities adjacent to currently or formerly owned facilities; and (iii) third-party Superfund or state equivalent sites. At facilities currently or formerly owned by our subsidiaries or their predecessors, the historical use and handling of regulated chemical substances, crop and animal nutrients and additives and by-product or process tailings have resulted in soil, surface water and/or groundwater contamination. Spills or other releases of regulated substances, subsidence from mining operations and other incidents arising out of operations, including accidents, have occurred previously at these facilities, and potentially could occur in the future, possibly requiring us to undertake or fund cleanup or result in monetary damage awards, fines, penalties, other liabilities, injunctions or other court or administrative rulings. In some instances, pursuant to consent orders or agreements with governmental agencies, we are undertaking certain remedial actions or investigations to determine whether remedial action may be required to address contamination. At other locations, we have entered into consent orders or agreements with appropriate governmental agencies to perform required remedial activities that will address identified site conditions. Taking into consideration established accruals of approximately $78.0 million and $25.6 million as of September 30, 2016 and December 31, 2015 , respectively, expenditures for these known conditions currently are not expected, individually or in the aggregate, to have a material effect on our business or financial condition. However, material expenditures could be required in the future to remediate the contamination at known sites or at other current or former sites or as a result of other environmental, health and safety matters. Below is a discussion of the more significant environmental matters. New Wales Water Loss Incident . In August 2016, a sinkhole developed under one of the two cells of the active phosphogypsum stack at our New Wales facility in Polk County, Florida, resulting in process water from the stack draining into the sinkhole. The incident was reported to the Florida Department of Environmental Protection (“ FDEP ”) and the U.S. Environmental Protection Agency (“ EPA ”) and we continued to provide FDEP with information regarding our actions in response to the incident, which include ongoing recovery of impacted groundwater and extensive and frequent sampling of monitoring wells on our property and, upon request, voluntary sampling of residential drinking water wells in the community. In connection with this incident, on October 24, 2016 our subsidiary, Mosaic Fertilizer, LLC (“ Mosaic Fertilizer ”), entered into a consent order (the “ Order ”) with the FDEP, under which Mosaic Fertilizer agreed to, among other things: • submit to FDEP a remediation plan to close the sinkhole and upon approval, implement the plan; • install additional groundwater monitoring wells and perform additional on- and off-site groundwater monitoring; • in the event monitored off-site water does not comply with applicable standards as a result of the incident, perform site assessment and rehabilitation and provide drinking water or water treatment services until compliance is achieved or a permanent alternative water supply provided; • operate an existing recovery well and install and maintain a standby recovery well; • provide financial assurance of no less than $40 million , which we expect to provide without the need for any expenditure of corporate funds through satisfaction of a financial strength test and Mosaic parent guarantee, to support off-site monitoring and sinkhole remediation costs and, if needed, the costs to support rehabilitation and other activities if monitored off-site water does not comply with applicable standards as a result of the incident; • evaluate the risk of potential future sinkhole formation at the New Wales facility and at Mosaic Fertilizer’s active Gypstack operations at the Bartow, Riverview and Plant City facilities with recommendations to address any identified issues; and • reimburse agreed cost of regulators in connection with the incident. The Order did not require payment of civil penalties relating to the incident and is effective, provided that it is subject to challenge during a 21 -day public review period. While there are uncertainties in estimating the total costs that may be incurred to comply with our responsibilities under the Order, we currently estimate that the cost to complete and implement the sinkhole closure remediation plan will be approximately $56 million and that we will incur additional costs of approximately $4 million to comply with the remaining obligations described above. These costs and related accruals have been recorded at September 30, 2016. Additional expenditures could be required in the future for additional remediation or other measures in connection with the sinkhole, if the Order is challenged, or if FDEP or EPA were to request additional measures to address risks presented by the Gypstack, and these expenditures could be material. In addition, we are unable to predict at this time what, if any, impact the New Wales water loss incident will have on future Florida permitting efforts. Also in connection with the water loss incident, on September 22, 2016, Nicholas Bohn, Natasha McCormick and Eric Weckman, individually and on behalf of all others similarly situated, filed a putative class action complaint against Mosaic and Mosaic Fertilizer, LLC in the United States District Court for the Middle District of Florida, alleging that defendants’ storage, management and operation of the phosphogypsum stack at the New Wales facility gives rise to actionable claims by the plaintiffs and the putative plaintiff class based on theories of negligence, nuisance and strict liability. Plaintiffs seek class certification, damages for alleged diminution in real property values, unspecified punitive damages and attorney’s fees and costs, and injunctive relief including implementation of a mandatory water well testing protocol and installation or funding of permanent filtration devices on any private water well testing positive for constituents associated with the New Wales water loss incident. We believe that the plaintiffs' allegations are without merit and intend to defend vigorously against them. At this stage of the proceedings, we cannot predict the outcome of this litigation, estimate the potential amount or range of loss or determine whether it will have a material effect on our results of operations, liquidity or capital resources. EPA RCRA Initiative . In 2003, the EPA Office of Enforcement and Compliance Assurance announced that it would be targeting facilities in mineral processing industries, including phosphoric acid producers, for a thorough review under the U.S. Resource Conservation and Recovery Act (" RCRA ") and related state laws. Mining and processing of phosphate rock generates residual materials that must be managed both during the operation of a facility and upon a facility’s closure. Certain solid wastes generated by our phosphate operations may be subject to regulation under RCRA and related state laws. EPA rules exempt "extraction" and "beneficiation" wastes, as well as 20 specified "mineral processing" wastes, from the hazardous waste management requirements of RCRA. Accordingly, certain of the residual materials which our phosphate operations generate, as well as process wastewater from phosphoric acid production, are exempt from regulation as hazardous wastes under RCRA. However, the generation and management of other solid wastes from phosphate operations may be subject to hazardous waste regulation if the waste is deemed to exhibit a "hazardous waste characteristic." As part of its initiative, we understand that EPA has inspected all or nearly all facilities in the U.S. phosphoric acid production sector, including ours, to ensure compliance with applicable RCRA regulations and to address any "imminent and substantial endangerment" found by EPA under RCRA. In addition to EPA’s inspections, our phosphates concentrates facilities have entered into consent orders to perform analyses of existing environmental data, to perform further environmental sampling as may be necessary, and to assess whether the facilities pose a risk of harm to human health or the surrounding environment. We received Notices of Violation (" NOVs ") from EPA related to the handling of hazardous waste at our Riverview (September 2005), New Wales (October 2005), Mulberry (June 2006), Green Bay (August 2006) and Bartow (September 2006) facilities in Florida. EPA issued similar NOVs to our competitors, including with respect to the Plant City facility acquired in our March 2014 acquisition of the Florida phosphate assets and assumption of certain liabilities (the " CF Phosphate Assets Acquisition ") of CF Industries, Inc. (" CF "), and referred the NOVs to the U.S. Department of Justice (" DOJ ") for further enforcement. On September 30, 2015, we and Mosaic Fertilizer, reached agreements with EPA, the DOJ, the FDEP and the Louisiana Department of Environmental Quality (the " LDEQ ") on the terms of two consent decrees to resolve claims relating to our management of certain waste materials onsite at our Riverview, New Wales, Mulberry, Green Bay, South Pierce and Bartow fertilizer manufacturing facilities in Florida and our Faustina and Uncle Sam facilities in Louisiana. The consent decrees do not cover the Plant City, Florida phosphate concentrates facility that we acquired as part of the CF Phosphate Assets Acquisition (the " Plant City Facility "). As discussed below, a separate consent decree was previously entered into with EPA and the FDEP with respect to RCRA compliance at Plant City. The consent decrees (collectively, the " 2015 Consent Decrees ") became effective on August 5, 2016 and require the following: • Payment of a cash penalty of approximately $8 million , in the aggregate, which was made in August 2016. • Payment of up to $2.2 million to fund specific environmental projects unrelated to our facilities, of which approximately $1.0 million was paid in August 2016. • Modification of certain operating practices and undertaking certain capital improvement projects over a period of several years that are expected to result in capital expenditures likely to exceed $200 million in the aggregate. • Provision of additional financial assurance for the estimated costs of closure and long term care (" Gypstack Closure Costs ") of our phosphogypsum management systems (" Gypstacks "). For financial reporting purposes, we recognize our estimated asset retirement obligations (" ARO "), including Gypstack Closure Costs, at their present value. This present value determined for financial reporting purposes is reflected on our Consolidated Balance Sheets in accrued liabilities and other noncurrent liabilities. As of December 31, 2015, the undiscounted amount of our Gypstack Closure Costs ARO, determined using the assumptions used for financial reporting purposes, was approximately $1.7 billion and the present value of our Gypstack Closure Costs ARO reflected in our Consolidated Balance Sheet was approximately $535 million . In August 2016 we deposited cash, in the total amount of $630 million , into the RCRA Trusts, which amount is expected to increase over time with reinvestment of earnings. The amount deposited corresponds to a material portion of our estimated Gypstack Closure Costs ARO. At December 31, 2015 and September 30, 2016, amounts to be held or held in the RCRA Trusts, (including reinvested earnings) are included in other assets on our Condensed Consolidated Balance Sheets. We will also issue a $50 million letter of credit in 2017 to further support our financial assurance obligations under the Florida 2015 Consent Decree. In addition, we have agreed to guarantee the difference between the amounts held in each RCRA Trust (including earnings) and the estimated closure and long-term care costs. Our actual Gypstack Closure Costs are generally expected to be paid by us in the normal course of our Phosphates business over a period that may not end until three decades or more after a Gypstack has been closed. As part of the CF Phosphate Assets Acquisition, we assumed certain ARO related to Gypstack Closure Costs at both the Plant City Facility and a closed Florida phosphate concentrates facility in Bartow, Florida (the " Bonnie Facility ") that we acquired. Associated with these assets are two related financial assurance arrangements for which we became responsible and that hold in trust the estimated Gypstack Closure Costs for these facilities, pursuant to federal or state law, which the government can draw against in the event we cannot perform such closure activities. One is a trust (the " Plant City Trust ") established to meet the requirements under a consent decree with EPA and the FDEP with respect to RCRA compliance at Plant City that also satisfies Florida financial assurance requirements at that site. The other is a trust fund (the " Bonnie Facility Trust ") established to meet the requirements under Florida financial assurance regulations (the " Florida Financial Assurance Requirement ") that apply to the Bonnie Facility. In the CF Phosphate Assets Acquisition, we deposited $189.2 million into the Plant City Trust as a substitute for funds that CF had deposited into trust. Based on our updated closure cost estimates, an additional $7 million was added to the Plant City Trust in the fourth quarter of 2014 and an additional $1.7 million was deposited in the third quarter of 2015 to correspond to that site's then estimated Gypstack Closure Costs. In addition, in July 2014, the FDEP approved our funding of $14.5 million into the Bonnie Facility Trust, which substituted funds that CF had deposited into an escrow account. We have since deposited an additional $6 million at various times into the Bonnie Facility Trust. Both financial assurance funding obligations require estimates of future expenditures that could be impacted by refinements in scope, technological developments, new information, cost inflation, changes in regulations, discount rates and the timing of activities. We are also permitted to satisfy our financial assurance obligations with respect to the Bonnie and Plant City Facilities by means of alternative credit support, including surety bonds or letters of credit. In September 2016 we arranged for the delivery of a surety bond to EPA in the face amount of approximately $260 million (the “ Plant City Bond ”), reflecting our updated closure cost estimates, as a substitute for the financial assurance provided through the Plant City Trust. Following agreement by EPA to this substitution, it will direct the trustee to release to Mosaic the approximately $200 million held in the Plant City Trust, which will then become unrestricted cash. We expect that to occur in the fourth quarter of 2016. Under our current approach to satisfying applicable requirements, additional financial assurance would be required in the future if increases in cost estimates exceed the face amount of the Plant City Bond or the amount held in the Bonnie Facility Trust. At September 30, 2016, the aggregate amount of AROs associated with the Plant City Facility and the Bonnie Facility included in our consolidated balance sheet was $92.5 million . The aggregate amount held in the Plant City Trust and the Bonnie Facility Trust exceeds the aggregate amount of AROs associated with the Plant City Facility and the Bonnie Facility because the amount required to be held in the Plant City Trust represents the aggregate undiscounted estimated amount to be paid by us in the normal course of our Phosphates business over a period that may not end until three decades or more after the Gypstack has been closed, while the AROs included in our Consolidated Balance Sheet reflect the discounted present value of those estimated amounts. As part of the acquisition, we also assumed ARO related to land reclamation. EPA EPCRA Initiative . In July 2008, DOJ sent a letter to major U.S. phosphoric acid manufacturers, including us, stating that EPA’s ongoing investigation indicates apparent violations of Section 313 of the Emergency Planning and Community Right-to-Know Act (" EPCRA ") at their phosphoric acid manufacturing facilities. Section 313 of EPCRA requires annual reports to be submitted with respect to the use or presence of certain toxic chemicals. DOJ and EPA also stated that they believe that a number of these facilities have violated Section 304 of EPCRA and Section 103 of the Comprehensive Environmental Response, Compensation and Liability Act (" CERCLA ") by failing to provide required notifications relating to the release of hydrogen fluoride from the facilities. The letter did not identify any specific violations by us or assert a demand for penalties against us. We cannot predict at this time whether EPA and DOJ will initiate an enforcement action over this matter, what its scope would be, or what the range of outcomes of such a potential enforcement action might be. Florida Sulfuric Acid Plants . On April 8, 2010, EPA Region 4 submitted an administrative subpoena to us under Section 114 of the Federal Clean Air Act (the " CAA ") regarding compliance of our Florida sulfuric acid plants with the "New Source Review" requirements of the CAA. The request received by Mosaic appears to be part of a broader EPA national enforcement initiative focusing on sulfuric acid plants. On June 16, 2010, EPA issued an NOV to CF (the " CF NOV ") with respect to "New Source Review" compliance at the Plant City Facility's sulfuric acid plants and the allegations in that NOV were not resolved before our 2014 acquisition of the Plant City Facility. CF has agreed to indemnify us with respect to any penalty EPA may assess as a result of the allegations in that NOV. We are negotiating the terms of a settlement with EPA that would resolve both the violations alleged in the CF NOV, and violations which EPA may contend, but have not asserted, exist at the sulfuric acid plants at our other facilities in Florida. Based on the current status of the negotiations, we expect that our commitments will include an agreement to reduce our sulfur dioxide emissions over the next five years to comply with a sulfur dioxide ambient air quality standard enacted by EPA in 2010. In the event we are unable to finalize agreement on the terms of the settlement, we cannot predict at this time whether EPA and DOJ will initiate an enforcement action with respect to "New Source Review" compliance at our Florida sulfuric acid plants other than the Plant City Facility or what its scope would be, or what the range of outcomes might be with respect to such a potential enforcement action or with respect to the CF NOV. Other Environmental Matters . Superfund and equivalent state statutes impose liability without regard to fault or to the legality of a party’s conduct on certain categories of persons who are considered to have contributed to the release of "hazardous substances" into the environment. Under Superfund, or its various state analogues, one party may, under certain circumstances, be required to bear more than its proportionate share of cleanup costs at a site where it has liability if payments cannot be obtained from other responsible parties. Currently, certain of our subsidiaries are involved or concluding involvement at several Superfund or equivalent state sites. Our remedial liability from these sites, alone or in the aggregate, currently is not expected to have a material effect on our business or financial condition. As more information is obtained regarding these sites and the potentially responsible parties involved, this expectation could change. We believe that, pursuant to several indemnification agreements, our subsidiaries are entitled to at least partial, and in many instances complete, indemnification for the costs that may be expended by us or our subsidiaries to remedy environmental issues at certain facilities. These agreements address issues that resulted from activities occurring prior to our acquisition of facilities or businesses from parties including, but not limited to, ARCO (BP); Beatrice Fund for Environmental Liabilities; Conoco; Conserv; Estech, Inc.; Kaiser Aluminum & Chemical Corporation; Kerr-McGee Inc.; PPG Industries, Inc.; The Williams Companies; CF; and certain other private parties. Our subsidiaries have already received and anticipate receiving amounts pursuant to the indemnification agreements for certain of their expenses incurred to date as well as future anticipated expenditures. We record potential indemnifications as an offset to the established accruals when they are realizable or realized. MicroEssentials® Patent Lawsuit On January 9, 2009, John Sanders and Specialty Fertilizer Products, LLC filed a complaint against Mosaic, Mosaic Fertilizer, LLC, Cargill, Incorporated and Cargill Fertilizer, Inc. in the United States District Court for the Western District of Missouri (the " Missouri District Court "). The complaint alleges that our production of MicroEssentials ® SZ, one of several types of the MicroEssentials ® value-added ammoniated phosphate crop nutrient products that we produce, infringes on a patent held by the plaintiffs since 2001 and which would expire in 2018. Plaintiffs have since asserted that other MicroEssentials ® products also infringe the patent. Plaintiffs seek to enjoin the alleged infringement and to recover an unspecified amount of damages and attorneys’ fees for past infringement. Our answer to the complaint responds that the plaintiffs’ patent is not infringed, is invalid and is unenforceable because the plaintiffs engaged in inequitable conduct during the prosecution of the patent. Through an order entered by the court on September 25, 2014, Cargill was dismissed as a defendant, and the two original plaintiffs were replaced by a single plaintiff, JLSMN LLC, an entity to whom the patents were transferred. The Missouri District Court stayed the lawsuit pending an ex parte reexamination of plaintiff's current patent claims by the U.S. Patent and Trademark Office (the " PTO "). That ex parte reexamination has now ended. On September 12, 2012, however, Shell Oil Company (" Shell ") filed an additional reexamination request which in part asserted that the claims as amended and added in connection with the ex parte reexamination are unpatentable. On October 4, 2012, the PTO issued an Ex Parte Reexamination Certificate in which certain claims of the plaintiff's patent were cancelled, disclaimed and amended, and new claims were added. Following the PTO’s grant of Shell’s request for an inter parties reexamination, on December 11, 2012, the PTO issued an initial rejection of all of plaintiff's remaining patent claims. On September 12, 2013, the PTO reversed its initial rejection of the plaintiff's remaining patent claims and allowed them to stand. Shell appealed the PTO’s decision, and on June 7, 2016, the Patent Trial and Appeal Board, the highest appellate authority within the PTO, issued a final decision holding that all claims initially allowed to the plaintiff by the PTO examiner should instead have been found invalid. On July 18, 2016, plaintiff appealed the Patent Trial and Appeal Board’s decision to the United States Court of Appeals for the Federal Circuit. The Patent Trial and Appeal Board’s decision, if affirmed by the Federal Circuit Court of Appeals, would result in no remaining claims against us. The stay in the Missouri District Court litigation is expected to remain in place during the appellate proceedings. We believe that the plaintiff's allegations are without merit and intend to defend vigorously against them. At this stage of the proceedings, we cannot predict the outcome of this litigation, estimate the potential amount or range of loss or determine whether it will have a material effect on our results of operations, liquidity or capital resources. Brazil Tax Contingencies Our Brazilian subsidiary is engaged in a number of judicial and administrative proceedings relating to various non-income tax matters. We estimate that our maximum potential liability with respect to these matters is approximately $101 million . Approximately $72 million of the maximum potential liability relates to a Brazilian federal value added tax, PIS and Cofins, tax credit cases for the period from 2004 to 2013; while the majority of the remaining amount relates to various other non-income tax cases such as value-added taxes. Based on Brazil legislation and the current status of similar tax cases involving unrelated taxpayers, we believe we have recorded adequate accruals, which are immaterial, for the probable liability with respect to these Brazilian judicial and administrative proceedings. Other Claims We also have certain other contingent liabilities with respect to judicial, administrative and arbitration proceedings and claims of third parties, including tax matters, arising in the ordinary course of business. We do not believe that any of these contingent liabilities will have a material adverse impact on our business or financial condition, results of operations, and cash flows. |
Accounting for Derivative Instr
Accounting for Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Accounting for Derivative Instruments and Hedging Activities | Accounting for Derivative Instruments and Hedging Activities We periodically enter into derivatives to mitigate our exposure to foreign currency risks and the effects of changing commodity prices. We record all derivatives on the Condensed Consolidated Balance Sheets at fair value. The fair value of these instruments is determined by using quoted market prices, third party comparables, or internal estimates. We net our derivative asset and liability positions when we have a master netting arrangement in place. Changes in the fair value of the foreign currency and commodity derivatives are immediately recognized in earnings because we do not apply hedge accounting treatment to these instruments. As of September 30, 2016 and December 31, 2015 , the gross asset position of our derivative instruments was $17.7 million and $6.8 million , respectively, and the gross liability position of our liability instruments was $9.4 million and $79.3 million , respectively. Unrealized gains and (losses) on foreign currency exchange contracts used to hedge cash flows related to the production of our products are included in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains and (losses) on commodities contracts are also recorded in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains or (losses) on foreign currency exchange contracts used to hedge cash flows that are not related to the production of our products are included in the foreign currency transaction gain/(loss) caption in the Condensed Consolidated Statements of Earnings. As of September 30, 2016 and December 31, 2015 , the following is the total absolute notional volume associated with our outstanding derivative instruments: (in millions of Units) September 30, December 31, Derivative Instrument Derivative Category Unit of Measure Foreign currency derivatives Foreign currency US Dollars 1,060.8 1,230.6 Interest rate derivatives Interest rate US Dollars — 175.0 Natural gas derivatives Commodity MMbtu 12.5 32.4 Credit-Risk-Related Contingent Features Certain of our derivative instruments contain provisions that are governed by International Swap and Derivatives Association agreements with the counterparties. These agreements contain provisions that allow us to settle for the net amount between payments and receipts, and also state that if our debt were to be rated below investment grade, certain counterparties could request full collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of September 30, 2016 and December 31, 2015 , was $4.7 million and $53.4 million , respectively. We have no cash collateral posted in association with these contracts. If the credit-risk-related contingent features underlying these agreements were triggered on September 30, 2016 , we would have been required to post $2.6 million of collateral assets, which are either cash or U.S. Treasury instruments, to the counterparties. Counterparty Credit Risk We enter into foreign exchange and certain commodity and interest rate derivatives, primarily with a diversified group of highly rated counterparties. We continually monitor our positions and the credit ratings of the counterparties involved and limit the amount of credit exposure to any one party. While we may be exposed to potential losses due to the credit risk of non-performance by these counterparties, material losses are not anticipated. We closely monitor the credit risk associated with our counterparties and customers and to date have not experienced material losses. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Following is a summary of the valuation techniques for assets and liabilities recorded in our Consolidated Balance Sheets at fair value on a recurring basis: Foreign Currency Derivatives -The foreign currency derivative instruments that we currently use are forward contracts and zero-cost collars, which typically expire within eighteen months . Most of the valuations are adjusted by a forward yield curve or interest rates. In such cases, these derivative contracts are classified within Level 2. Some valuations are based on exchange-quoted prices, which are classified as Level 1. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment, or foreign currency transaction (gain) loss. As of September 30, 2016 and December 31, 2015 , the gross asset position of our foreign currency derivative instruments was $16.6 million and $5.7 million , respectively, and the gross liability position of our foreign currency derivative instruments was $5.5 million and $59.6 million , respectively. Commodity Derivatives -The commodity contracts primarily relate to natural gas. The commodity derivative instruments that we currently use are forward purchase contracts, swaps, and three-way collars. The natural gas contracts settle using NYMEX futures or AECO price indexes, which represent fair value at any given time. The contracts’ maturities and settlements are scheduled for future months and settlements are scheduled to coincide with anticipated gas purchases during those future periods. Quoted market prices from NYMEX and AECO are used to determine the fair value of these instruments. These market prices are adjusted by a forward yield curve and are classified within Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment. As of September 30, 2016 and December 31, 2015 , the gross asset position of our commodity derivative instruments was $1.1 million and $1.0 million , respectively, and the gross liability position of our commodity instruments was $2.9 million and $16.7 million , respectively. Financial Instruments The carrying amounts and estimated fair values of our financial instruments are as follows: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 653.5 $ 653.5 $ 1,276.3 $ 1,276.3 Receivables, net 512.4 512.4 675.0 675.0 Accounts payable 486.9 486.9 520.6 520.6 Structured accounts payable arrangements 223.7 223.7 481.7 481.7 Short-term debt 53.6 53.6 25.5 25.5 Long-term debt, including current portion 3,823.1 4,110.7 3,811.2 3,860.4 For cash and cash equivalents, receivables, net, accounts payable, structured accounts payable arrangements, and short-term debt, the carrying amount approximates fair value because of the short-term maturity of those instruments. The fair value of long-term debt, including the current portion, is estimated using quoted market prices for the publicly registered notes and debentures, classified as Level 1 and Level 2, respectively, within the fair value hierarchy, depending on the market liquidity of the debt. |
Share Repurchases
Share Repurchases | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchases | Share Repurchases In February of 2014, our Board of Directors authorized a $1 billion share repurchase program (" 2014 Repurchase Program "), allowing the Company to repurchase Class A Shares or shares of our Common Stock (" Common Stock "), through direct buybacks or in open market transactions. During the nine months ended September 30, 2015 , under the 2014 Repurchase Program, 2,560,277 shares of Common Stock were repurchased in the open market for an aggregate of approximately $123.3 million . In total, 18,339,060 shares of stock were repurchased under the 2014 Repurchase program for an aggregate total of $850.6 million . The remaining authorized amount of $149.4 million was terminated in connection with the authorization of the 2015 Repurchase Program discussed below. On May 14, 2015, our Board of Directors authorized a new $1.5 billion share repurchase program (" 2015 Repurchase Program "), with no set expiration date, allowing the Company to repurchase shares of our Common Stock, through open market purchases, accelerated share repurchase arrangements, privately negotiated transactions or otherwise. During 2015, we repurchased 1,891,620 shares of Common Stock in the open market under the 2015 Repurchase Program for approximately $74.9 million . In May 2015 and February 2016, under the 2015 Repurchase Program, we entered into separate accelerated share repurchase transactions (" ASRs ") with financial institutions to repurchase shares of our Common Stock for up-front payments of $500 million and $75 million , respectively. For each ASR, the total number of shares ultimately delivered, and therefore the average price paid per share, were determined at the end of the ASR’s purchase period based on the volume-weighted average price of our Common Stock during that period, less an agreed discount. The shares received were retired in the period they were delivered, and each up-front payment is accounted for as a reduction to shareholders’ equity in our Condensed Consolidated Balance Sheet in the period the payment was made. Neither ASR was dilutive to our earnings per share calculation from its execution date through its settlement date. The unsettled portion of each ASR during that period met the criteria to be accounted for as a forward contract indexed to our Common Stock and qualified as an equity transaction. Additional information relating to each ASR is shown below: Settlement Date Shares Delivered Average Price Per Share ASR Amount May 2015 ASR July 28, 2015 11,106,847 $45.02 $500.0 million February 2016 ASR March 29, 2016 2,766,558 $27.11 $75.0 million As of September 30, 2016, 15,765,025 shares of Common Stock have been repurchased under the 2015 Repurchase Program for an aggregate total of approximately $650 million , bringing the remaining amount that could be repurchased under this program to $850 million . The extent to which we repurchase our shares and the timing of any such repurchases depend on a number of factors, including market and business conditions, the price of our shares, and corporate, regulatory and other considerations. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions We enter into transactions and agreements with certain of our non-consolidated companies from time to time. As of September 30, 2016 and December 31, 2015 , the net amount due to our non-consolidated companies totaled $80.9 million and $26.4 million , respectively. The Condensed Consolidated Statements of Earnings included the following transactions with our non-consolidated companies: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Transactions with non-consolidated companies included in net sales $ 179.4 $ 227.2 $ 467.8 $ 849.3 Transactions with non-consolidated companies included in cost of goods sold 125.8 211.8 453.3 608.0 |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The reportable segments are determined by management based upon factors such as products and services, production processes, technologies, market dynamics, and for which segment financial information is available for our chief operating decision maker. For a description of our business segments see Note 1 to the Condensed Consolidated Financial Statements in this report. We evaluate performance based on the operating earnings of the respective business segments, which includes certain allocations of corporate selling, general and administrative expenses. The segment results may not represent the actual results that would be expected if they were independent, stand-alone businesses. Intersegment eliminations, including profit on intersegment sales, mark-to-market gains/losses on derivatives, debt expenses and our legacy Argentina and Chile results are included within Corporate, Eliminations and Other. Segment information for the three and nine months ended September 30, 2016 and 2015 was as follows: Phosphates Potash International Distribution Corporate, Eliminations and Other Total Three months ended September 30, 2016 Net sales to external customers $ 676.7 $ 422.4 $ 848.2 $ 4.9 $ 1,952.2 Intersegment net sales (a) 252.9 5.7 0.3 (258.9 ) — Net sales 929.6 428.1 848.5 (254.0 ) 1,952.2 Gross margin (a) 101.3 39.8 70.6 1.6 213.3 Canadian resource taxes — 14.6 — — 14.6 Gross margin (excluding Canadian resource taxes) 101.3 54.4 70.6 1.6 227.9 Operating earnings (loss) 6.2 6.8 50.3 6.4 69.7 Depreciation, depletion and amortization expense 84.2 76.6 4.1 7.8 172.7 Capital expenditures 89.4 98.6 4.8 3.6 196.4 Three months ended September 30, 2015 Net sales to external customers $ 791.2 $ 485.5 $ 824.3 $ 4.5 $ 2,105.5 Intersegment net sales (a) 241.2 6.0 0.3 (247.5 ) — Net sales 1,032.4 491.5 824.6 (243.0 ) 2,105.5 Gross margin (a) 198.9 96.9 60.5 (21.0 ) 335.3 Canadian resource taxes — 59.1 — — 59.1 Gross margin (excluding Canadian resource taxes) 198.9 156.0 60.5 (21.0 ) 394.4 Operating earnings (loss) 157.2 65.7 44.0 (20.9 ) 246.0 Depreciation, depletion and amortization expense 96.0 75.1 3.3 6.5 180.9 Capital expenditures 117.5 118.7 4.1 5.0 245.3 Nine months ended September 30, 2016 Net sales to external customers $ 2,162.5 $ 1,267.8 $ 1,848.4 $ 22.0 $ 5,300.7 Intersegment net sales (a) 652.5 11.4 0.8 (664.7 ) — Net sales 2,815.0 1,279.2 1,849.2 (642.7 ) 5,300.7 Gross margin (a) 266.3 190.9 87.0 59.9 604.1 Canadian resource taxes — 71.0 — — 71.0 Gross margin (excluding Canadian resource taxes) 266.3 261.9 87.0 59.9 675.1 Operating earnings (loss) 35.7 110.9 34.9 63.9 245.4 Depreciation, depletion and amortization expense 284.3 231.7 11.4 18.3 545.7 Capital expenditures 291.3 309.7 16.7 16.0 633.7 Nine months ended September 30, 2015 Net sales to external customers $ 2,942.9 $ 1,865.3 $ 1,899.7 $ 24.2 $ 6,732.1 Intersegment net sales (a) 646.8 9.2 1.2 (657.2 ) — Net sales 3,589.7 1,874.5 1,900.9 (633.0 ) 6,732.1 Gross margin (a) 716.5 633.7 109.5 (97.3 ) 1,362.4 Canadian resource taxes — 192.1 — — 192.1 Gross margin (excluding Canadian resource taxes) 716.5 825.8 109.5 (97.3 ) 1,554.5 Operating earnings (loss) 607.0 528.6 54.6 (115.7 ) 1,074.5 Depreciation, depletion and amortization expense 288.7 236.1 10.7 19.3 554.8 Capital expenditures 374.2 301.6 13.9 12.5 702.2 Total Assets As of September 30, 2016 $ 7,768.3 $ 8,086.6 $ 1,634.8 $ (226.5 ) $ 17,263.2 As of December 31, 2015 8,369.8 8,363.9 1,695.6 (1,039.8 ) 17,389.5 (a) Certain intercompany sales within the Phosphates segment are recognized as revenue before the final price is determined. During the three and nine months ended September 30, 2015 these transactions had the effect of increasing Phosphate segment revenues and gross margin by $101.8 million and $26.3 million , respectively. There were no intersegment sales of this type outstanding at September 30, 2016. Revenues and cost of goods sold on these Phosphates sales are eliminated in the "Corporate and Other" category similar to all other intercompany transactions. |
Guarantee
Guarantee | 9 Months Ended |
Sep. 30, 2016 | |
Guarantees [Abstract] | |
Guarantee | Guarantee Guarantee of Payments Mosaic has entered into an agreement (as amended to date, the " Bridge Loan ") to provide bridge funding to Gulf Marine Solutions, LLC (" GMS ") to finance the purchase and construction of two articulated tug and barge units (the " ATBs ") intended to transport anhydrous ammonia, primarily for Mosaic’s operations. In May 2016, the parties agreed to increase the Bridge Loan from $75 million to $185 million . GMS is a wholly owned subsidiary of Gulf Sulphur Services Ltd., LLLP (" Gulf Sulphur Services "), an entity in which Mosaic owns a 50% equity interest and which is operated by Mosaic’s joint venture partner. Mosaic’s joint venture partner is arranging for construction of the ATBs, utilizing funds borrowed from GMS, and will enter into a long-term transportation contract with a subsidiary of Mosaic to transport anhydrous ammonia. During the quarter ended June 30, 2016, at Mosaic's instruction, Mosaic's joint venture partner notified the barge builder of its election under the construction contract to cancel construction of the second barge unit, resulting in a charge of $43.5 million that is included in other operating expense for the nine months ended September 30, 2016. Construction of the first barge unit and the two tugs will continue as planned . At September 30, 2016 , $137.0 million was outstanding under the Bridge Loan, and GMS had received additional loans from Gulf Sulphur Services in the aggregate amount of $52.0 million for the ATB project, which are included in long-term debt in our Condensed Consolidated Balance Sheets. These loans obtained by GMS were in turn lent to Mosaic’s joint venture partner for use in constructing the ATBs. The parties are seeking third-party financing for the ATB project, with proceeds to be utilized to repay outstanding Bridge Loans and loans from Gulf Sulphur Services. In connection with the ATB project, Mosaic has also agreed to guarantee up to $100 million of payment obligations to the barge builder. The guarantee will remain in effect until final payment under the construction agreement. Beginning in the quarter ended December 31, 2015, we determined we are the primary beneficiary of GMS, a variable interest entity, and have consolidated its balance sheet and statement of earnings within our consolidated financial statements in our Phosphates segment. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Statement Presentation and Basis of Consolidation The accompanying unaudited Condensed Consolidated Financial Statements of Mosaic have been prepared on the accrual basis of accounting and in accordance with the requirements of the Securities and Exchange Commission (" SEC ") for interim financial reporting. As permitted under these rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States (" GAAP ") can be condensed or omitted. The Condensed Consolidated Financial Statements included in this document reflect, in the opinion of our management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The following notes should be read in conjunction with the accounting policies and other disclosures in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2015 (the " 10-K Report "). Sales, expenses, cash flows, assets and liabilities can and do vary during the year as a result of seasonality and other factors. Therefore, interim results are not necessarily indicative of the results to be expected for the full fiscal year. The accompanying Condensed Consolidated Financial Statements include the accounts of Mosaic, its majority owned subsidiaries, and certain variable interest entities in which Mosaic is the primary beneficiary. Certain investments in companies where we do not have control but have the ability to exercise significant influence are accounted for by the equity method. |
Accounting Estimates | Accounting Estimates Preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. The most significant estimates made by management relate to the estimates of fair value of acquired assets and liabilities, the recoverability of non-current assets including goodwill, the useful lives and net realizable values of long-lived assets, environmental and reclamation liabilities including asset retirement obligations (" ARO "), the costs of our employee benefit obligations for pension plans and postretirement benefits, income tax related accounts, including the valuation allowance against deferred income tax assets, inventory valuation and accruals for pending legal and environmental matters. Actual results could differ from these estimates. |
Earnings Per Share | The numerator for basic and diluted earnings per share (" EPS ") is net earnings attributable to Mosaic. The denominator for basic EPS is the weighted average number of shares outstanding during the period. The denominator for diluted EPS also includes the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued, unless the shares are anti-dilutive. |
Income Taxes | We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax provision. |
Goodwill | We review goodwill for impairment annually in October or at any time events or circumstances indicate that the carrying value may not be fully recoverable, which is based on our accounting policy and GAAP. |
Marketable Securities Held in Trust | The RCRA Trusts hold investments in marketable debt securities classified as available-for-sale and are carried at fair value. As a result, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the carrying value of an investment is impaired on an other-than-temporary basis. There were no other-than-temporary impairment write-downs on available-for-sale securities during the three and nine months ended September 30, 2016 . We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. We determine the fair market values of our available-for-sale securities and certain other assets based on the fair value hierarchy described below: Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities. Level 2: Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market. Level 3: Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. |
Accounting for derivative and hedging activities | We periodically enter into derivatives to mitigate our exposure to foreign currency risks and the effects of changing commodity prices. We record all derivatives on the Condensed Consolidated Balance Sheets at fair value. The fair value of these instruments is determined by using quoted market prices, third party comparables, or internal estimates. We net our derivative asset and liability positions when we have a master netting arrangement in place. Changes in the fair value of the foreign currency and commodity derivatives are immediately recognized in earnings because we do not apply hedge accounting treatment to these instruments. Unrealized gains and (losses) on foreign currency exchange contracts used to hedge cash flows related to the production of our products are included in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains and (losses) on commodities contracts are also recorded in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains or (losses) on foreign currency exchange contracts used to hedge cash flows that are not related to the production of our products are included in the foreign currency transaction gain/(loss) caption in the Condensed Consolidated Statements of Earnings. |
Fair value measurements | Following is a summary of the valuation techniques for assets and liabilities recorded in our Consolidated Balance Sheets at fair value on a recurring basis: Foreign Currency Derivatives - The foreign currency derivative instruments that we currently use are forward contracts and zero-cost collars, which typically expire within eighteen months. Most of the valuations are adjusted by a forward yield curve or interest rates. In such cases, these derivative contracts are classified within Level 2. Some valuations are based on exchange-quoted prices, which are classified as Level 1. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment, or foreign currency transaction (gain) loss. Commodity Derivatives - The commodity contracts primarily relate to natural gas. The commodity derivative instruments that we currently use are forward purchase contracts, swaps, and three-way collars. The natural gas contracts settle using NYMEX futures or AECO price indexes, which represent fair value at any given time. The contracts’ maturities are for future months and settlements are scheduled to coincide with anticipated gas purchases during those future periods. Quoted market prices from NYMEX and AECO are used to determine the fair value of these instruments. These market prices are adjusted by a forward yield curve and are classified within Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment. For cash and cash equivalents, receivables, net, accounts payable, structured accounts payable arrangements, and short-term debt, the carrying amount approximates fair value because of the short-term maturity of those instruments. The fair value of long-term debt, including the current portion, is estimated using quoted market prices for the publicly registered notes and debentures, classified as Level 1 and Level 2, respectively, within the fair value hierarchy, depending on the market liquidity of the debt. |
Business Segments | The reportable segments are determined by management based upon factors such as products and services, production processes, technologies, market dynamics, and for which segment financial information is available for our chief operating decision maker. We evaluate performance based on the operating earnings of the respective business segments, which includes certain allocations of corporate selling, general and administrative expenses. The segment results may not represent the actual results that would be expected if they were independent, stand-alone businesses. Intersegment eliminations, including profit on intersegment sales, mark-to-market gains/losses on derivatives, debt expenses and our legacy Argentina and Chile results are included within Corporate, Eliminations and Other. |
Other Financial Statement Data
Other Financial Statement Data (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Other Financial Statement Data [Abstract] | |
Schedule of Other Financial Statement Data | The following provides add i tional information concerning selected balance sheet accounts: September 30, December 31, Other current assets Final price deferred (a) $ 97.0 $ 175.6 Income and other taxes receivable 256.5 249.4 Prepaid expenses 135.3 123.1 Restricted cash (b) 207.8 9.3 Other 86.6 71.2 $ 783.2 $ 628.6 Other assets MRO inventory $ 117.8 $ 118.1 Marketable securities held in trust (c) 602.1 — Restricted cash (c) 58.1 851.4 Other 300.5 287.9 $ 1,078.5 $ 1,257.4 Accrued liabilities Non-income taxes $ 38.2 $ 24.9 Payroll and employee benefits 155.7 162.9 Asset retirement obligations 121.6 91.9 Customer prepayments 186.7 121.2 Future capital commitment — 120.0 Other 300.2 456.6 $ 802.4 $ 977.5 Other noncurrent liabilities Asset retirement obligations $ 730.1 $ 749.7 Accrued pension and postretirement benefits 61.4 69.6 Unrecognized tax benefits 23.5 79.2 Other 122.7 132.1 $ 937.7 $ 1,030.6 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as risk of loss has passed to our customers. Amounts in this account are based on inventory cost. (b) Included in restricted cash, as of September 30, 2016 , is approximately $200 million held in trust, which is expected to be returned to us in the fourth quarter of 2016. See further discussion in Note 10 of our Notes to Condensed Consolidated Financial Statements. (c) Included in restricted cash, as of December 31, 2015 , was approximately $630 million that was committed to be placed in trust following the effectiveness of the consent decrees discussed under "EPA RCRA Initiative" in Note 10 of our Notes to Condensed Consolidated Financial Statements and that was placed in trusts in August 2016 after the consent decrees became effective. The funds have been invested in marketable securities as discussed in Note 9 of our Condensed Consolidated Financial Statements. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | The following is a reconciliation of the numerator and denominator for the basic and diluted EPS computations: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net earnings attributable to Mosaic $ 39.2 $ 160.0 $ 285.9 $ 845.4 Basic weighted average number of shares outstanding 350.1 354.3 350.4 360.5 Dilutive impact of share-based awards 1.4 1.7 1.3 1.8 Diluted weighted average number of shares outstanding 351.5 356.0 351.7 362.3 Basic net earnings per share attributable to Mosaic $ 0.11 $ 0.45 $ 0.82 $ 2.35 Diluted net earnings per share attributable to Mosaic $ 0.11 $ 0.45 $ 0.81 $ 2.33 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: September 30, December 31, Raw materials $ 51.6 $ 68.1 Work in process 366.0 435.9 Finished goods 1,003.9 991.0 Operating materials and supplies 78.6 68.5 $ 1,500.1 $ 1,563.5 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill, by reporting unit, are as follows: Phosphates Potash International Distribution Total Balance as of December 31, 2015 $ 492.4 $ 984.7 $ 118.2 $ 1,595.3 Foreign currency translation — 49.4 6.9 56.3 Balance as of September 30, 2016 $ 492.4 $ 1,034.1 $ 125.1 $ 1,651.6 |
Marketable Securities Held in31
Marketable Securities Held in Trusts (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale investments | The estimated fair value of the investments in the RCRA Trusts is as follows: September 30, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 27.9 $ — $ — $ 27.9 Level 2 Corporate debt securities 203.5 — (0.4 ) 203.1 Municipal bonds 138.1 0.1 (0.4 ) 137.8 U.S. government bonds 258.4 0.1 (0.1 ) 258.4 Total $ 627.9 $ 0.2 $ (0.9 ) $ 627.2 |
Fair value of available-for-sale debt securities in an unrealized loss position | The following table shows the gross unrealized losses and fair values of the RCRA Trusts' available-for-sale securities that have been in a continuous unrealized loss position deemed to be temporary as of September 30, 2016 . September 30, 2016 Less than 12 months (a) Fair Value Gross Unrealized Losses Corporate debt securities $ 135.8 $ (0.4 ) Municipal bonds 45.9 (0.4 ) U.S. government bonds 218.6 (0.1 ) Total $ 400.3 $ (0.9 ) (a) Represents the aggregate of the gross unrealized losses that have been in a continuous unrealized loss position as of September 30, 2016 . |
Schedule of maturity dates for debt securities | The following table summarizes the balance by contractual maturity of the available-for-sale debt securities invested by the RCRA Trusts as of September 30, 2016 . Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations before the underlying contracts mature. September 30, 2016 Due in one year or less $ 82.3 Due after one year through five years 151.0 Due after five years through ten years 354.3 Due after ten years 11.7 Total debt securities $ 599.3 |
Accounting for Derivative Notio
Accounting for Derivative Notional Amounts (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments Notional Amounts | As of September 30, 2016 and December 31, 2015 , the following is the total absolute notional volume associated with our outstanding derivative instruments: (in millions of Units) September 30, December 31, Derivative Instrument Derivative Category Unit of Measure Foreign currency derivatives Foreign currency US Dollars 1,060.8 1,230.6 Interest rate derivatives Interest rate US Dollars — 175.0 Natural gas derivatives Commodity MMbtu 12.5 32.4 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The carrying amounts and estimated fair values of our financial instruments are as follows: September 30, 2016 December 31, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 653.5 $ 653.5 $ 1,276.3 $ 1,276.3 Receivables, net 512.4 512.4 675.0 675.0 Accounts payable 486.9 486.9 520.6 520.6 Structured accounts payable arrangements 223.7 223.7 481.7 481.7 Short-term debt 53.6 53.6 25.5 25.5 Long-term debt, including current portion 3,823.1 4,110.7 3,811.2 3,860.4 |
Share Repuchases (Tables)
Share Repuchases (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of accelerated share repurchases | Additional information relating to each ASR is shown below: Settlement Date Shares Delivered Average Price Per Share ASR Amount May 2015 ASR July 28, 2015 11,106,847 $45.02 $500.0 million February 2016 ASR March 29, 2016 2,766,558 $27.11 $75.0 million |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Related Party Transactions [Abstract] | |
Schedule of related party transactions | The Condensed Consolidated Statements of Earnings included the following transactions with our non-consolidated companies: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Transactions with non-consolidated companies included in net sales $ 179.4 $ 227.2 $ 467.8 $ 849.3 Transactions with non-consolidated companies included in cost of goods sold 125.8 211.8 453.3 608.0 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment information for the three and nine months ended September 30, 2016 and 2015 was as follows: Phosphates Potash International Distribution Corporate, Eliminations and Other Total Three months ended September 30, 2016 Net sales to external customers $ 676.7 $ 422.4 $ 848.2 $ 4.9 $ 1,952.2 Intersegment net sales (a) 252.9 5.7 0.3 (258.9 ) — Net sales 929.6 428.1 848.5 (254.0 ) 1,952.2 Gross margin (a) 101.3 39.8 70.6 1.6 213.3 Canadian resource taxes — 14.6 — — 14.6 Gross margin (excluding Canadian resource taxes) 101.3 54.4 70.6 1.6 227.9 Operating earnings (loss) 6.2 6.8 50.3 6.4 69.7 Depreciation, depletion and amortization expense 84.2 76.6 4.1 7.8 172.7 Capital expenditures 89.4 98.6 4.8 3.6 196.4 Three months ended September 30, 2015 Net sales to external customers $ 791.2 $ 485.5 $ 824.3 $ 4.5 $ 2,105.5 Intersegment net sales (a) 241.2 6.0 0.3 (247.5 ) — Net sales 1,032.4 491.5 824.6 (243.0 ) 2,105.5 Gross margin (a) 198.9 96.9 60.5 (21.0 ) 335.3 Canadian resource taxes — 59.1 — — 59.1 Gross margin (excluding Canadian resource taxes) 198.9 156.0 60.5 (21.0 ) 394.4 Operating earnings (loss) 157.2 65.7 44.0 (20.9 ) 246.0 Depreciation, depletion and amortization expense 96.0 75.1 3.3 6.5 180.9 Capital expenditures 117.5 118.7 4.1 5.0 245.3 Nine months ended September 30, 2016 Net sales to external customers $ 2,162.5 $ 1,267.8 $ 1,848.4 $ 22.0 $ 5,300.7 Intersegment net sales (a) 652.5 11.4 0.8 (664.7 ) — Net sales 2,815.0 1,279.2 1,849.2 (642.7 ) 5,300.7 Gross margin (a) 266.3 190.9 87.0 59.9 604.1 Canadian resource taxes — 71.0 — — 71.0 Gross margin (excluding Canadian resource taxes) 266.3 261.9 87.0 59.9 675.1 Operating earnings (loss) 35.7 110.9 34.9 63.9 245.4 Depreciation, depletion and amortization expense 284.3 231.7 11.4 18.3 545.7 Capital expenditures 291.3 309.7 16.7 16.0 633.7 Nine months ended September 30, 2015 Net sales to external customers $ 2,942.9 $ 1,865.3 $ 1,899.7 $ 24.2 $ 6,732.1 Intersegment net sales (a) 646.8 9.2 1.2 (657.2 ) — Net sales 3,589.7 1,874.5 1,900.9 (633.0 ) 6,732.1 Gross margin (a) 716.5 633.7 109.5 (97.3 ) 1,362.4 Canadian resource taxes — 192.1 — — 192.1 Gross margin (excluding Canadian resource taxes) 716.5 825.8 109.5 (97.3 ) 1,554.5 Operating earnings (loss) 607.0 528.6 54.6 (115.7 ) 1,074.5 Depreciation, depletion and amortization expense 288.7 236.1 10.7 19.3 554.8 Capital expenditures 374.2 301.6 13.9 12.5 702.2 Total Assets As of September 30, 2016 $ 7,768.3 $ 8,086.6 $ 1,634.8 $ (226.5 ) $ 17,263.2 As of December 31, 2015 8,369.8 8,363.9 1,695.6 (1,039.8 ) 17,389.5 (a) Certain intercompany sales within the Phosphates segment are recognized as revenue before the final price is determined. During the three and nine months ended September 30, 2015 these transactions had the effect of increasing Phosphate segment revenues and gross margin by $101.8 million and $26.3 million , respectively. There were no intersegment sales of this type outstanding at September 30, 2016. Revenues and cost of goods sold on these Phosphates sales are eliminated in the "Corporate and Other" category similar to all other intercompany transactions. |
Organization and Nature of Bu37
Organization and Nature of Business (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Miski Mayo Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Mosaic's ownership percentage | 35.00% |
MWSPC Joint Venture | |
Schedule of Equity Method Investments [Line Items] | |
Mosaic's ownership percentage | 25.00% |
Percent of joint venture production Mosaic expects to market | 25.00% |
Recently Issued Accounting Gu38
Recently Issued Accounting Guidance (Details) $ in Millions | Dec. 31, 2015USD ($) |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Deferred financing fees reclassified to long term debt | $ 22.9 |
Revolving Credit Facility | |
Line of Credit Facility | |
Deferred financing fees recorded as other assets | $ 2.9 |
Other Financial Statement Dat39
Other Financial Statement Data (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 | |||
Other current assets | |||||
Final price deferred | [1] | $ 97 | $ 175.6 | ||
Income and other taxes receivable | 256.5 | 249.4 | |||
Prepaid expenses | 135.3 | 123.1 | |||
Restricted cash | 207.8 | [2] | 9.3 | ||
Other | 86.6 | 71.2 | |||
Total other current assets | 783.2 | 628.6 | |||
Other assets | |||||
MRO inventory | 117.8 | 118.1 | |||
Marketable securities held in trust | 602.1 | [3] | 0 | ||
Restricted cash | 58.1 | 851.4 | [3] | ||
Other | 300.5 | 287.9 | |||
Total other assets | 1,078.5 | 1,257.4 | |||
Accrued liabilities | |||||
Non-income taxes | 38.2 | 24.9 | |||
Payroll and employee benefits | 155.7 | 162.9 | |||
Asset retirement obligations | 121.6 | 91.9 | |||
Customer prepayments | 186.7 | 121.2 | |||
Future capital commitment | 0 | 120 | |||
Other | 300.2 | 456.6 | |||
Total accrued liabilities, current | 802.4 | 977.5 | |||
Other noncurrent liabilities | |||||
Asset retirement obligations | 730.1 | 749.7 | |||
Accrued pension and postretirement benefits | 61.4 | 69.6 | |||
Unrecognized tax benefits | 23.5 | 79.2 | |||
Other | 122.7 | 132.1 | |||
Total other noncurrent liabilities | 937.7 | 1,030.6 | |||
Additional restricted cash information | |||||
Assets Held-in-trust, Current | $ 200 | ||||
Restricted cash related to asset retirement obligation | $ 630 | ||||
[1] | Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. This has not been included in inventory as risk of loss has passed to our customers. Amounts in this account are based on inventory cost. | ||||
[2] | Included in restricted cash, as of September 30, 2016, is approximately $200 million held in trust, which is expected to be returned to us in the fourth quarter of 2016. See further discussion in Note 10 of our Notes to Condensed Consolidated Financial Statements. | ||||
[3] | Included in restricted cash, as of December 31, 2015, was approximately $630 million that was committed to be placed in trust following the effectiveness of the consent decrees discussed under "EPA RCRA Initiative" in Note 10 of our Notes to Condensed Consolidated Financial Statements and that was placed in trusts in August 2016 after the consent decrees became effective. The funds have been invested in marketable securities as discussed in Note 9 of our Condensed Consolidated Financial Statements. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Mosaic | $ 39.2 | $ 160 | $ 285.9 | $ 845.4 |
Basic weighted average number of shares outstanding | 350.1 | 354.3 | 350.4 | 360.5 |
Dilutive impact of share-based awards | 1.4 | 1.7 | 1.3 | 1.8 |
Diluted weighted average number of shares outstanding | 351.5 | 356 | 351.7 | 362.3 |
Basic net earnings per share attributable to Mosaic | $ 0.11 | $ 0.45 | $ 0.82 | $ 2.35 |
Diluted net earnings per share attributable to Mosaic | $ 0.11 | $ 0.45 | $ 0.81 | $ 2.33 |
Shares subject to issuance upon exercise of stock options excluded from the calculation of diluted earnings per share | 2.6 | 1.6 | 3 | 1.3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Change in unrecognized tax benefit | $ (74.4) | |||
Unrecognized tax benefits | $ 24.2 | 24.2 | ||
Unrecognized tax benefits that would impact effective tax rate | 8 | 8 | ||
Interest And Penalties [Abstract] | ||||
Unrecognized tax benefits, income tax penalties and interest accrued | 1.7 | 1.7 | $ 17.1 | |
Income Tax (Expense) Benefit, Continuing Operations [Abstract] | ||||
Effective income tax rate reconciliation, other expense (benefit) reconciling items, amount | (1.6) | (60.7) | $ (40.5) | |
Effective income tax rate reconciliation, resolution of Advanced Pricing Agreement, amount | (85.8) | (14.6) | ||
Effective income tax rate reconciliation, distributions from certain non-U.S. subsidiaries, amount | 17.9 | |||
Effective income tax rate reconciliation, prior year income taxes, amount | $ 7.2 | |||
Effective income tax rate reconciliation, other expense (benefit) adjustments, amount | $ (28) | |||
Effective income tax rate reconciliation, resolution of certain tax matters, amount | (18.4) | |||
Tax benefit resulted from tax rate reduction of one of our equity method investments | $ (7.5) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 51.6 | $ 68.1 |
Work in process | 366 | 435.9 |
Finished goods | 1,003.9 | 991 |
Operating materials and supplies | 78.6 | 68.5 |
Total Inventory | $ 1,500.1 | $ 1,563.5 |
Goodwill (Details)
Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Line Items] | |
Beginning Balance | $ 1,595.3 |
Foreign currency translation | 56.3 |
Ending Balance | 1,651.6 |
Phosphates Segment | |
Goodwill [Line Items] | |
Beginning Balance | 492.4 |
Foreign currency translation | 0 |
Ending Balance | 492.4 |
Potash Segment | |
Goodwill [Line Items] | |
Beginning Balance | 984.7 |
Foreign currency translation | 49.4 |
Ending Balance | 1,034.1 |
International Distribution | |
Goodwill [Line Items] | |
Beginning Balance | 118.2 |
Foreign currency translation | 6.9 |
Ending Balance | $ 125.1 |
Marketable Securities Held in44
Marketable Securities Held in Trusts (Details) - USD ($) | Sep. 30, 2016 | Aug. 31, 2016 | Dec. 31, 2015 |
Investments, Debt and Equity Securities [Abstract] | |||
Amount deposited by Mosaic into the RCRA Trusts | $ 630,000,000 | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | $ 627,900,000 | ||
Gross unrealized gains | 200,000 | ||
Gross unrealized losses | (900,000) | ||
Estimated fair value | 627,200,000 | $ 0 | |
Cash and Cash Equivalents | Level 1 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 27,900,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 0 | ||
Estimated fair value | 27,900,000 | ||
Corporate debt securities | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 203,500,000 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | (400,000) | ||
Estimated fair value | 203,100,000 | ||
Municipal bonds | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 138,100,000 | ||
Gross unrealized gains | 100,000 | ||
Gross unrealized losses | (400,000) | ||
Estimated fair value | 137,800,000 | ||
U.S. government bonds | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 258,400,000 | ||
Gross unrealized gains | 100,000 | ||
Gross unrealized losses | (100,000) | ||
Estimated fair value | $ 258,400,000 |
Marketable Securities Held in45
Marketable Securities Held in Trusts - Continuous Loss Position (Details) $ in Millions | Sep. 30, 2016USD ($) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | |
Available-for-sale securities, less than twelve months, fair value | $ 400.3 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (0.9) |
Corporate debt securities | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | |
Available-for-sale securities, less than twelve months, fair value | 135.8 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (0.4) |
Municipal bonds | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | |
Available-for-sale securities, less than twelve months, fair value | 45.9 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (0.4) |
U.S. government bonds | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | |
Available-for-sale securities, less than twelve months, fair value | 218.6 |
Available-for-sale securities, less than twelve months, gross unrealized losses | $ (0.1) |
Marketable Securities Held in46
Marketable Securities Held in Trusts - Maturity Dates and Realized Gain and Loss(Details) - Debt securities $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016USD ($) | Sep. 30, 2016USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | ||
Gross realized losses | $ (0.1) | $ (0.1) |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity | ||
Available-for-sale debt maturities due within one year, fair value | 82.3 | 82.3 |
Available-for-sale debt maturities, after 1 but within 5 years, fair value | 151 | 151 |
Available-for-sale debt maturities, after 5 but within 10 years, fair value | 354.3 | 354.3 |
Available-for-sale debt maturities, after 10 years, fair value | 11.7 | 11.7 |
Available-for-sale Securities, Debt Securities | $ 599.3 | $ 599.3 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Aug. 31, 2016USD ($) | Sep. 30, 2016USD ($)waste | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($) |
Applicability, Impact and Conclusion of Environmental Loss Contingencies [Abstract] | ||||
Environmental contingency accrual | $ 78 | $ 25.6 | ||
Loss Contingencies [Line Items] | ||||
Number of specified mineral processing wastes exempted from EPA rules | waste | 20 | |||
Amount deposited by Mosaic into the RCRA Trusts | $ 630 | |||
New Wales water loss incident | ||||
Loss Contingencies [Line Items] | ||||
Consent Order public review period | 21 days | |||
2015 Consent Decrees With EPA | Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Penalty accrued related to EPA RCRA Initiative | 8 | |||
Payment related to loss contingency liability | 1 | |||
Future capital expenditures | 200 | |||
Asset retirement obligations, undiscounted | 1,700 | |||
Discounted asset retirement obligation | $ 535 | |||
Amount deposited by Mosaic into the RCRA Trusts | 630 | |||
Maximum | Brazilian Non Income Tax Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential liabilitiy | $ 101 | |||
Maximum | Brazilian Non Income Tax Proceedings | PIS And Cofins Cases | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential liabilitiy | 72 | |||
Maximum | 2015 Consent Decrees With EPA | Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential liabilitiy | $ 2.2 | |||
Minimum | New Wales water loss incident | ||||
Loss Contingencies [Line Items] | ||||
Financial assurance to support off-site monitoring and sinkhole remediation costs | 40 | |||
Minimum | New Wales water loss incident | Sinkhole closure remediation plan | ||||
Loss Contingencies [Line Items] | ||||
Expense related to environmental remediation | 56 | |||
Minimum | New Wales water loss incident | Obligations other than sinkhole closure | ||||
Loss Contingencies [Line Items] | ||||
Expense related to environmental remediation | $ 4 | |||
Estimate | 2015 Consent Decrees With EPA | Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Letter of credit to be issued to support financial assurance obligations under the Florida Consent Decree | $ 50 |
Contingencies Other Commitments
Contingencies Other Commitments (Details) - USD ($) $ in Millions | 3 Months Ended | 26 Months Ended | ||||||
Sep. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2014 | Mar. 31, 2014 | ||
Other Commitments [Line Items] | ||||||||
Restricted cash | $ 58.1 | $ 851.4 | [1] | |||||
Assets Held-in-trust, Current | 200 | |||||||
Asset retirement obligations | 730.1 | $ 749.7 | ||||||
Plant City Trust | ||||||||
Other Commitments [Line Items] | ||||||||
Restricted cash | $ 189.2 | |||||||
Increase in Restricted Cash | $ 1.7 | $ 7 | ||||||
Assets Held-in-trust, Current | 200 | |||||||
Plant City Trust | Surety Bond [Member] | Estimate | ||||||||
Other Commitments [Line Items] | ||||||||
Post Closure And Environmental Costs | $ 260 | |||||||
Bonnie Facility Trust | ||||||||
Other Commitments [Line Items] | ||||||||
Restricted cash | $ 14.5 | |||||||
Increase in Restricted Cash | 6 | |||||||
Plant City and Bonnie Facilities | ||||||||
Other Commitments [Line Items] | ||||||||
Asset retirement obligations | $ 92.5 | |||||||
[1] | Included in restricted cash, as of December 31, 2015, was approximately $630 million that was committed to be placed in trust following the effectiveness of the consent decrees discussed under "EPA RCRA Initiative" in Note 10 of our Notes to Condensed Consolidated Financial Statements and that was placed in trusts in August 2016 after the consent decrees became effective. The funds have been invested in marketable securities as discussed in Note 9 of our Condensed Consolidated Financial Statements. |
Derivative Instruments - Gross
Derivative Instruments - Gross Asset and Liability Positions (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross asset position | $ 17.7 | $ 6.8 |
Gross liability position | $ 9.4 | $ 79.3 |
Derivative Notional Amounts (De
Derivative Notional Amounts (Details) MMBTU in Millions, $ in Millions | Sep. 30, 2016USD ($)MMBTU | Dec. 31, 2015USD ($)MMBTU |
Foreign Exchange Contract | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | $ 1,060.8 | $ 1,230.6 |
Interest Rate Swap | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | $ 0 | $ 175 |
Commodity Contract (MMbtu) | ||
Notional Disclosures [Abstract] | ||
Nonmonetary derivative notional amount | MMBTU | 12.5 | 32.4 |
Credit Risk Related Contingent
Credit Risk Related Contingent Features (Details) - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 |
Derivative, Credit Risk Related Contingent Features [Abstract] | ||
The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position | $ 4,700,000 | $ 53,400,000 |
Cash collateral posted for derivative instruments with credit-risk related contingent features | 0 | |
Required collateral assets to be posted if the credit-risk contingent features of these underlying agreements were triggered | $ 2,600,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Dec. 31, 2015 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Gross asset position | $ 17.7 | $ 6.8 |
Gross liability position | $ 9.4 | 79.3 |
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Contract | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Average maturity of foreign currency derivative instruments | 18 months | |
Gross asset position | $ 16.6 | 5.7 |
Gross liability position | 5.5 | 59.6 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Gross asset position | 1.1 | 1 |
Gross liability position | $ 2.9 | $ 16.7 |
Fair Value Financial Instrument
Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 653.5 | $ 1,276.3 |
Receivables, net | 512.4 | 675 |
Accounts payable | 486.9 | 520.6 |
Structured accounts payable arrangements | 223.7 | 481.7 |
Short-term debt | 53.6 | 25.5 |
Long-term debt, including current portion | 3,823.1 | 3,811.2 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 653.5 | 1,276.3 |
Receivables, net | 512.4 | 675 |
Accounts payable | 486.9 | 520.6 |
Structured accounts payable arrangements | 223.7 | 481.7 |
Short-term debt | 53.6 | 25.5 |
Long-term debt, including current portion | $ 4,110.7 | $ 3,860.4 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 29, 2016 | Jul. 28, 2015 | Dec. 31, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2016 | May 13, 2015 | May 14, 2015 | Feb. 28, 2014 |
Share Repurchases [Line Items] | |||||||||
Payments for repurchase of common stock | $ 75 | $ 709.4 | |||||||
2014 Repurchase Program | |||||||||
Share Repurchases [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,000 | ||||||||
Stock repurchased and retired (shares) | 2,560,277 | 18,339,060 | |||||||
Payments for repurchase of common stock | $ 123.3 | $ 850.6 | |||||||
Stock repurchase program, remaining authorized repurchase amount terminated | $ 149.4 | ||||||||
2015 Repurchase Program | |||||||||
Share Repurchases [Line Items] | |||||||||
Stock repurchase program, authorized amount | $ 1,500 | ||||||||
Stock repurchased and retired (shares) | 1,891,620 | 15,765,025 | |||||||
Payments for repurchase of common stock | $ 74.9 | $ 650 | |||||||
Stock repurchase program, remaining authorized repurchase amount | $ 850 | ||||||||
2015 Repurchase Program | May 2015 ASR | |||||||||
Share Repurchases [Line Items] | |||||||||
Stock repurchased and retired (shares) | 11,106,847 | ||||||||
Payment under ASR | $ 500 | ||||||||
Final average price per share under ASR | $ 45.02 | ||||||||
2015 Repurchase Program | February 2016 ASR | |||||||||
Share Repurchases [Line Items] | |||||||||
Stock repurchased and retired (shares) | 2,766,558 | ||||||||
Payment under ASR | $ 75 | ||||||||
Final average price per share under ASR | $ 27.11 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |||||
Net amount owed to our non-consolidated companies | $ 80.9 | $ 80.9 | $ 26.4 | ||
Transactions with non-consolidated companies included in net sales | 179.4 | $ 227.2 | 467.8 | $ 849.3 | |
Transactions with non-consolidated companies included in cost of goods sold | $ 125.8 | $ 211.8 | $ 453.3 | $ 608 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | ||
Segment Reporting Information [Line Items] | ||||||
Net sales | $ 1,952.2 | $ 2,105.5 | $ 5,300.7 | $ 6,732.1 | ||
Gross margin | 213.3 | 335.3 | 604.1 | 1,362.4 | ||
Canadian resource taxes | 14.6 | 59.1 | 71 | 192.1 | ||
Gross margin (excluding canadian resource taxes) | 227.9 | 394.4 | 675.1 | 1,554.5 | ||
Operating earnings (loss) | 69.7 | 246 | 245.4 | 1,074.5 | ||
Depreciation, depletion and amortization expense | 172.7 | 180.9 | 545.7 | 554.8 | ||
Capital expenditures | 196.4 | 245.3 | 633.7 | 702.2 | ||
Total assets | 17,263.2 | 17,263.2 | $ 17,389.5 | |||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 1,952.2 | 2,105.5 | 5,300.7 | 6,732.1 | ||
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Phosphates Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 929.6 | 1,032.4 | 2,815 | 3,589.7 | ||
Gross margin | [1] | 101.3 | 198.9 | 266.3 | 716.5 | |
Canadian resource taxes | 0 | 0 | 0 | 0 | ||
Gross margin (excluding canadian resource taxes) | 101.3 | 198.9 | 266.3 | 716.5 | ||
Operating earnings (loss) | 6.2 | 157.2 | 35.7 | 607 | ||
Depreciation, depletion and amortization expense | 84.2 | 96 | 284.3 | 288.7 | ||
Capital expenditures | 89.4 | 117.5 | 291.3 | 374.2 | ||
Total assets | 7,768.3 | 7,768.3 | 8,369.8 | |||
Phosphates Segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 676.7 | 791.2 | 2,162.5 | 2,942.9 | ||
Phosphates Segment | Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | [1] | 252.9 | 241.2 | 652.5 | 646.8 | |
Intercompany net sales impact | 0 | 101.8 | 0 | 101.8 | ||
Intercompany gross margin impact | 0 | 26.3 | 0 | 26.3 | ||
Potash Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 428.1 | 491.5 | 1,279.2 | 1,874.5 | ||
Gross margin | 39.8 | 96.9 | 190.9 | 633.7 | ||
Canadian resource taxes | 14.6 | 59.1 | 71 | 192.1 | ||
Gross margin (excluding canadian resource taxes) | 54.4 | 156 | 261.9 | 825.8 | ||
Operating earnings (loss) | 6.8 | 65.7 | 110.9 | 528.6 | ||
Depreciation, depletion and amortization expense | 76.6 | 75.1 | 231.7 | 236.1 | ||
Capital expenditures | 98.6 | 118.7 | 309.7 | 301.6 | ||
Total assets | 8,086.6 | 8,086.6 | 8,363.9 | |||
Potash Segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 422.4 | 485.5 | 1,267.8 | 1,865.3 | ||
Potash Segment | Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 5.7 | 6 | 11.4 | 9.2 | ||
International Distribution | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 848.5 | 824.6 | 1,849.2 | 1,900.9 | ||
Gross margin | 70.6 | 60.5 | 87 | 109.5 | ||
Canadian resource taxes | 0 | 0 | 0 | 0 | ||
Gross margin (excluding canadian resource taxes) | 70.6 | 60.5 | 87 | 109.5 | ||
Operating earnings (loss) | 50.3 | 44 | 34.9 | 54.6 | ||
Depreciation, depletion and amortization expense | 4.1 | 3.3 | 11.4 | 10.7 | ||
Capital expenditures | 4.8 | 4.1 | 16.7 | 13.9 | ||
Total assets | 1,634.8 | 1,634.8 | 1,695.6 | |||
International Distribution | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 848.2 | 824.3 | 1,848.4 | 1,899.7 | ||
International Distribution | Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 0.3 | 0.3 | 0.8 | 1.2 | ||
Corporate Eliminations And Other Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | (254) | (243) | (642.7) | (633) | ||
Gross margin | [1] | 1.6 | (21) | 59.9 | (97.3) | |
Canadian resource taxes | 0 | 0 | 0 | 0 | ||
Gross margin (excluding canadian resource taxes) | 1.6 | (21) | 59.9 | (97.3) | ||
Operating earnings (loss) | 6.4 | (20.9) | 63.9 | (115.7) | ||
Depreciation, depletion and amortization expense | 7.8 | 6.5 | 18.3 | 19.3 | ||
Capital expenditures | 3.6 | 5 | 16 | 12.5 | ||
Total assets | (226.5) | (226.5) | $ (1,039.8) | |||
Corporate Eliminations And Other Segment | Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | 4.9 | 4.5 | 22 | 24.2 | ||
Corporate Eliminations And Other Segment | Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Net sales | [1] | (258.9) | (247.5) | (664.7) | (657.2) | |
Intercompany net sales impact | 0 | (101.8) | 0 | (101.8) | ||
Intercompany gross margin impact | $ 0 | $ (26.3) | $ 0 | $ (26.3) | ||
[1] | Certain intercompany sales within the Phosphates segment are recognized as revenue before the final price is determined. During the three and nine months ended September 30, 2015 these transactions had the effect of increasing Phosphate segment revenues and gross margin by $101.8 million and $26.3 million, respectively. There were no intersegment sales of this type outstanding at September 30, 2016. Revenues and cost of goods sold on these Phosphates sales are eliminated in the "Corporate and Other" category similar to all other intercompany transactions. |
Guarantee (Details)
Guarantee (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | May 31, 2016USD ($) | |
Guarantor Obligations [Line Items] | |||
Initial number of vessels to be constructed | 2 | ||
Loss on write-down of long-lived asset | $ 43.5 | $ 7.9 | |
Maximum | |||
Guarantor Obligations [Line Items] | |||
Amount of bridge loans Mosaic will provide to GMS | $ 185 | $ 75 | |
Equity Method Investee Gulf Sulphur Services | |||
Guarantor Obligations [Line Items] | |||
Mosaic's ownership percentage | 50.00% | ||
Affiliated Entity Gulf Marine Solutions (GMS) | |||
Guarantor Obligations [Line Items] | |||
Amount of bridge loan outstanding | $ 137 | ||
Additional loan outstanding owed by GMS to Gulf Sulphur Services | 52 | ||
Guarantee obligations maximum exposure | $ 100 |