Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Document Period End Date | Sep. 30, 2017 | |
Current fiscal year end date | --12-31 | |
Entity filer category | Large Accelerated Filer | |
Entity well known seasoned issuer | Yes | |
Entity common stock shares outstanding | 351,049,649 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Earnings (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net sales | $ 1,984.8 | $ 1,952.2 | $ 5,317.5 | $ 5,300.7 |
Cost of goods sold | 1,744 | 1,738.9 | 4,754.8 | 4,696.6 |
Gross margin | 240.8 | 213.3 | 562.7 | 604.1 |
Selling, general and administrative expenses | 66.1 | 66.9 | 218.2 | 229.6 |
Other operating (income) expense | (39.2) | 76.7 | 5.9 | 129.1 |
Operating earnings | 213.9 | 69.7 | 338.6 | 245.4 |
Interest expense, net | (36.2) | (25.5) | (98.4) | (85.2) |
Foreign currency transaction gain (loss) | 58.6 | (32.4) | 76.6 | 70.2 |
Other income (expense) | 1.1 | 0.5 | (2) | 0.3 |
Earnings from consolidated companies before income taxes | 237.4 | 12.3 | 314.8 | 230.7 |
Provision for (benefit from) income taxes | 17.6 | (30.1) | 4.7 | (68.7) |
Earnings from consolidated companies | 219.8 | 42.4 | 310.1 | 299.4 |
Equity in net earnings (loss) of nonconsolidated companies | 9.8 | (1.7) | 15.5 | (12.8) |
Net earnings including noncontrolling interests | 229.6 | 40.7 | 325.6 | 286.6 |
Less: Net earnings attributable to noncontrolling interests | 2.1 | 1.5 | 1.7 | 0.7 |
Net earnings attributable to Mosaic | $ 227.5 | $ 39.2 | $ 323.9 | $ 285.9 |
Basic net earnings per share attributable to Mosaic | $ 0.65 | $ 0.11 | $ 0.92 | $ 0.82 |
Basic weighted average number of shares outstanding | 351.1 | 350.1 | 350.9 | 350.4 |
Diluted net earnings per share attributable to Mosaic | $ 0.65 | $ 0.11 | $ 0.92 | $ 0.81 |
Diluted weighted average number of shares outstanding | 352.2 | 351.5 | 351.9 | 351.7 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings including noncontrolling interest | $ 229.6 | $ 40.7 | $ 325.6 | $ 286.6 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation gain (loss), net of tax | 177 | (65.1) | 293 | 257.4 |
Net actuarial gain and prior service cost, net of tax | 1.3 | 1.7 | 5.2 | 5 |
Amortization of gain on interest rate swap, net of tax | 0.6 | 0.6 | 1.8 | 1.9 |
Net gain (loss) on marketable securities held in trust fund, net of tax | 0.1 | (0.7) | 3.8 | (0.7) |
Other comprehensive income (loss) | 179 | (63.5) | 303.8 | 263.6 |
Comprehensive income (loss) | 408.6 | (22.8) | 629.4 | 550.2 |
Less: Comprehensive income attributable to noncontrolling interest | 2.9 | 1.3 | 2.2 | 2.9 |
Comprehensive income (loss) attributable to Mosaic | $ 405.7 | $ (24.1) | $ 627.2 | $ 547.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 685.7 | $ 673.1 |
Receivables, net | 592.3 | 627.8 |
Inventories | 1,666.2 | 1,391.1 |
Other current assets | 431.3 | 365.7 |
Total current assets | 3,375.5 | 3,057.7 |
Property, plant and equipment, net of accumulated depreciation | 9,696.3 | 9,198.5 |
Investments in nonconsolidated companies | 1,138.9 | 1,063.1 |
Goodwill | 1,703.4 | 1,630.9 |
Deferred income taxes | 765.1 | 836.4 |
Other assets | 1,123.9 | 1,054.1 |
Total assets | 17,803.1 | 16,840.7 |
Current liabilities: | ||
Short-term debt | 58.6 | 0.1 |
Current maturities of long-term debt | 134.2 | 38.8 |
Structured accounts payable arrangements | 370.4 | 128.8 |
Accounts payable | 547.9 | 471.8 |
Accrued liabilities | 786.7 | 837.3 |
Total current liabilities | 1,897.8 | 1,476.8 |
Long-term debt, less current maturities | 3,722.3 | 3,779.3 |
Deferred income taxes | 1,072.6 | 1,009.2 |
Other noncurrent liabilities | 954.9 | 952.9 |
Equity: | ||
Preferred stock, par value | 0 | 0 |
Common stock, par value | 3.5 | 3.5 |
Capital in excess of par value | 39.8 | 29.9 |
Retained earnings | 11,079.8 | 10,863.4 |
Accumulated other comprehensive loss | (1,008.9) | (1,312.2) |
Total Mosaic stockholders' equity | 10,114.2 | 9,584.6 |
Noncontrolling interests | 41.3 | 37.9 |
Total equity | 10,155.5 | 9,622.5 |
Total liabilities and equity | $ 17,803.1 | $ 16,840.7 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation | $ 6,154.1 | $ 5,718.7 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, issued | 388,998,498 | 388,187,398 |
Common stock, outstanding | 351,049,649 | 350,238,549 |
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 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash Flows from Operating Activities | ||
Net earnings including noncontrolling interest | $ 325.6 | $ 286.6 |
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 493.5 | 545.7 |
Deferred and other income taxes | 53.9 | (127.9) |
Equity in net loss (earnings) of nonconsolidated companies, net of dividends | (15.5) | 30.1 |
Accretion expense for asset retirement obligations | 19.6 | 30 |
Share-based compensation expense | 24.5 | 26.5 |
Loss on write-down of long-lived asset | 0 | 43.5 |
Unrealized gain on derivatives | (5.7) | (81.5) |
(Gain) loss on sale of fixed assets | (43.6) | 12.1 |
Other | 5.3 | 0.8 |
Changes in assets and liabilities, excluding effects of acquisition: | ||
Receivables, net | (6.8) | 122.1 |
Inventories | (254.6) | 158.5 |
Other current and noncurrent assets | (42.7) | 33.1 |
Accounts payable and accrued liabilities | (38.4) | (162.7) |
Other noncurrent liabilities | 9.2 | 20.8 |
Net cash provided by operating activities | 524.3 | 937.7 |
Cash Flows from Investing Activities | ||
Capital expenditures | (589.9) | (633.7) |
Purchases of available-for-sale securities - restricted | (1,546.3) | (734.4) |
Proceeds from sale of available-for-sale securities - restricted | 1,533.7 | 138.9 |
Investments in nonconsolidated companies | (62.5) | (244) |
Investments in consolidated affiliate | (47.7) | (130) |
Proceeds from sale of fixed assets | 69.1 | 0 |
Other | 0.3 | 3.3 |
Net cash used in investing activities | (643.3) | (1,599.9) |
Cash Flows from Financing Activities | ||
Payments of short-term debt | (523.2) | (333.7) |
Proceeds from issuance of short-term debt | 608.1 | 361.9 |
Payments of structured accounts payable arrangements | (238.8) | (603.7) |
Proceeds from structured accounts payable arrangements | 473.8 | 341.3 |
Payments of long-term debt | (6.2) | (43) |
Proceeds from issuance of long-term debt | 1.5 | 0 |
Repurchases of stock | 0 | (75) |
Cash dividends paid | (201.8) | (288.8) |
Other | (2.2) | 6.9 |
Net cash provided by (used in) financing activities | 111.2 | (634.1) |
Effect of exchange rate changes on cash | 22.8 | 78.8 |
Net change in cash, cash equivalents and restricted cash | 15 | (1,217.5) |
Cash, cash equivalents and restricted cash-beginning of period | 711.4 | 2,137 |
Cash, cash equivalents and restricted cash-end of period | 726.4 | 919.5 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash and cash equivalents | 685.7 | 653.5 |
Restricted cash in other current assets | 7.5 | 207.8 |
Restricted cash in other assets | 33.2 | 58.2 |
Cash, cash equivalents and restricted cash-end of period | 726.4 | 919.5 |
Supplemental Disclosure of Cash Flow Information: | ||
Interest (net of amount capitalized) | 98.4 | 66.6 |
Income taxes (net of refunds) | $ (16.7) | $ 24.7 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Cash Flow Parenthetical - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Cash Flows [Abstract] | ||
Capitalized interest costs | $ 19.1 | $ 27.6 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Shareholders Equity (Unaudited) - USD ($) $ in Millions | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest |
Beginning balance at Dec. 31, 2015 | $ 9,565 | $ 3.5 | $ 6.4 | $ 11,014.8 | $ (1,492.9) | $ 33.2 |
Common stock shares outstanding, beginning balance (in shares) at Dec. 31, 2015 | 352,500,000 | |||||
Total comprehensive income | 484 | 297.8 | 180.7 | 5.5 | ||
Stock option exercises | 3.8 | 3.8 | ||||
Stock option exercises (in shares) | 500,000 | |||||
Stock based compensation | 29.2 | 29.2 | ||||
Repurchases of stock | (75) | $ 0 | (9.5) | (65.5) | ||
Repurchases of stock (in shares) | (2,800,000) | |||||
Dividends | (383.7) | (383.7) | ||||
Dividends for noncontrolling interests | (0.8) | (0.8) | ||||
Ending balance at Dec. 31, 2016 | $ 9,622.5 | $ 3.5 | 29.9 | 10,863.4 | (1,312.2) | 37.9 |
Common stock shares outstanding, ending balance (in shares) at Dec. 31, 2016 | 350,238,549 | 350,200,000 | ||||
Total comprehensive income | $ 629.4 | 323.9 | 303.3 | 2.2 | ||
Vesting of restricted stock units | (14.6) | (14.6) | ||||
Vesting of restricted stock units (in shares) | 800,000 | |||||
Stock based compensation | 24.5 | 24.5 | ||||
Dividends | (107.5) | (107.5) | ||||
Dividends for noncontrolling interests | (0.6) | (0.6) | ||||
Equity from noncontrolling interests | 1.8 | 1.8 | ||||
Ending balance at Sep. 30, 2017 | $ 10,155.5 | $ 3.5 | $ 39.8 | $ 11,079.8 | $ (1,008.9) | $ 41.3 |
Common stock shares outstanding, ending balance (in shares) at Sep. 30, 2017 | 351,049,649 | 351,000,000 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Shareholders Equity (Unaudited) (Parentheticals) - $ / shares | 9 Months Ended | 12 Months Ended |
Sep. 30, 2017 | Dec. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.575 | $ 1.10 |
Organization and Nature of Busi
Organization and Nature of Business | 9 Months Ended |
Sep. 30, 2017 | |
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. We will market approximately 25% of the MWSPC phosphate production. MWSPC commenced ammonia operations in late 2016. We recognize our equity in the net earnings or losses relating to the Miski Mayo joint venture on a one-month reporting lag, and MWSPC on a one-quarter reporting lag, in our Condensed Consolidated Statements of Earnings. • 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, debt expenses and Streamsong Resort ® results of operations are included within Corporate, Eliminations and Other. See Note 17 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, 2017 | |
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, 2016 (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. Brazil Securitization In March 2017, Mosaic transferred trade receivables originated by a Brazilian subsidiary of Mosaic to a securitization entity as part of a three -year revolving trade receivables securitization that is also intended to facilitate additional credit to our customers. In return for the transfer of trade receivables, Mosaic's Brazil subsidiary received cash plus a $5.2 million subordinated investment in the securitization entity. Mosaic is exposed to losses on these receivables through its subordinated first loss interest in the securitization issuance which is generally limited to the subordinated investment. Mosaic has the obligation to repurchase receivables from the securitization entity in certain circumstances and provide additional funding, if needed, to cover certain transaction expenses. Mosaic has accounted for this transaction as a secured borrowing and we continue to report the related accounts receivable on our balance sheet. At September 30, 2017, the amount of short-term debt related to this arrangement was $4.0 million . Change in Method of Depreciation and Estimated Useful Lives of Property and Equipment We have worked extensively to ensure the mechanical integrity of our fixed assets in order to help prolong their useful lives, while helping to ensure optimal asset utilization. Additionally, in the fourth quarter of 2016, we announced plans to significantly reduce future capital expenditure levels in order to preserve cash. As a result, we completed an in-depth review of our fixed assets and concluded that for certain assets, we would make a change to the units-of-production depreciation method from the straight-line method to better reflect the pattern of consumption of those assets. We also determined the expected lives of certain mining and production equipment and reserves were longer than the previously estimated useful lives used to determine depreciation in our financial statements. As a result, effective January 1, 2017, we changed our estimates of the useful lives and method of determining the depreciation of certain equipment to better reflect the estimated periods during which these assets will remain in service. The effect of this change in estimates is expected to reduce 2017 depreciation expense, thus increasing operating earnings, by approximately $70 million in 2017. Amounts may vary throughout the year due to changes in production levels. As a result of this change and actions taken to prolong asset lives, we expect our maintenance expense to increase in the future. |
Recently Issued Accounting Guid
Recently Issued Accounting Guidance | 9 Months Ended |
Sep. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Guidance | Recently Issued Accounting Guidance Recently Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (" FASB ") issued guidance which requires that a statement of cash flows explain the change during the related period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. This guidance is effective for us beginning January 1, 2018, and early adoption is permitted. We adopted this standard in the first quarter of 2017 and applied the new guidance on a retrospective basis to all periods presented. Accordingly, on the Condensed Statements of Cash Flows we reclassified $38.3 million and $860.7 million from investing activities to the beginning-of-period cash and cash equivalents balance for September 30, 2017 and 2016, respectively. 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 by allowing for adoption either at January 1, 2017 or January 1, 2018. We intend to utilize the modified retrospective method when adopting the new standard on January 1, 2018. We have reviewed our sales contracts and practices as compared to the new guidance and have made significant progress to implement the revenue recognition and disclosure requirements of the new standard. Our initial evaluation identifying areas that will be impacted by the new guidance is substantially complete. As a result of our evaluation, we have modified arrangements and systems to ensure that revenue will be recognized at the time control of product transfers to the customer and all other revenue recognition criteria are met. These modifications do not represent significant changes to our business practices. We expect the new standard will have no cash impact and will not affect the economics of our underlying customer contracts. Based on the evaluation of our current contracts, most revenue will be recorded consistently under both the current and new revenue standards. However, we expect the new revenue standard to accelerate the timing of revenue recognition for certain North American sales arrangements as it requires emphasis on transfer of control rather than risks and rewards. For example, under current revenue practices, we typically wait for risk of loss to be assumed by the customer before recognizing revenue, which generally occurs later than when control is transferred. Although we do not expect a material impact from this change, the ultimate impact of adopting the new revenue standards will depend upon contracts in place at December 31, 2017. We continue to analyze the impact of the new standard on the revenue accounting for our proposed acquisition of Vale Fertilizantes, S.A. and for our equity-method investees. We are revising our revenue recognition accounting policy and drafting new revenue disclosures to reflect the requirements of the new standard. We continue to assess all potential impacts of the guidance and given normal ongoing business dynamics, preliminary conclusions are subject to change. 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 have determined that we will not early adopt this standard, and that we will utilize initial calculational guidance for existing leases provided in the standard for use in the modified retrospective approach. We are currently gathering information about our lease arrangements, and are evaluating provisions of our leases against the recognition requirements of the new standard. Additionally, we are anticipating that implementation of the new leasing standard will require an information system solution and changes to internal processes. We continue to evaluate potential technology and process solutions and continue to work to determine the impact this guidance will have on our consolidated financial statements. |
Other Financial Statement Data
Other Financial Statement Data | 9 Months Ended |
Sep. 30, 2017 | |
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) $ 5.5 $ 31.6 Income and other taxes receivable 232.9 146.3 Prepaid expenses 116.6 99.9 Other 76.3 87.9 $ 431.3 $ 365.7 Other assets MRO inventory $ 112.8 $ 115.6 Marketable securities held in trust 628.9 611.0 Restricted cash 33.2 31.3 Other 349.0 296.2 $ 1,123.9 $ 1,054.1 Accrued liabilities Accrued dividends $ 3.2 $ 101.8 Payroll and employee benefits 126.5 142.9 Asset retirement obligations 103.5 102.0 Customer prepayments 183.1 145.6 Other 370.4 345.0 $ 786.7 $ 837.3 Other noncurrent liabilities Asset retirement obligations $ 747.9 $ 747.9 Accrued pension and postretirement benefits 60.4 64.9 Unrecognized tax benefits 32.7 27.2 Other 113.9 112.9 $ 954.9 $ 952.9 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Amounts in this account are based on inventory cost. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and the amounts are retained in inventory. See Note 7. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Net earnings attributable to Mosaic $ 227.5 $ 39.2 $ 323.9 $ 285.9 Basic weighted average number of shares outstanding 351.1 350.1 350.9 350.4 Dilutive impact of share-based awards 1.1 1.4 1.0 1.3 Diluted weighted average number of shares outstanding 352.2 351.5 351.9 351.7 Basic net earnings per share attributable to Mosaic $ 0.65 $ 0.11 $ 0.92 $ 0.82 Diluted net earnings per share attributable to Mosaic $ 0.65 $ 0.11 $ 0.92 $ 0.81 A total of 3.4 million and 3.5 million shares of Common Stock subject to issuance upon exercise of stock options for the three and nine months ended September 30, 2017 and 2.6 million and 3.0 million shares and for the three and nine months ended September 30, 2016 , 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, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the nine months ended September 30, 2017 , gross unrecognized tax benefits increased by $10.1 million to $37.2 million . The increase related to worldwide tax positions and foreign currency translation. If recognized, approximately $18.0 million of the $37.2 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 $3.3 million and $3.2 million as of September 30, 2017 and December 31, 2016 , respectively, that were included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets. For the three months ended September 30, 2017 , tax expense specific to the period was $12.4 million . This consisted primarily of expense of $16.8 million related to the $10.4 million pre-tax charges resulting from the expected resolution of a royalty matter with the government of Saskatchewan and related royalty impacts (the " Royalty Resolution "), partially offset by a benefit of $2.4 million primarily related to non-U.S. audit activity and a benefit of $2.0 million related to changes in estimates related to prior years. Tax expense specific to the nine months ended September 30, 2017 was $5.1 million , which included the aforementioned Royalty Resolution item of $16.8 million , an expense of $6.7 million related to the effect on deferred income tax liabilities of an increase in the statutory tax rate for one of our equity method investments, and an expense of $8.3 million primarily related to share-based compensation, partially offset by a benefit of $21.9 million related to a Canadian income tax rate change and a benefit of $4.8 million related to changes in estimates related to prior years. Our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate and by a benefit associated with depletion. Our income tax rate is higher in 2017 compared to 2016 because certain of our deductions have decreased relative to pre-tax income. In addition, for the three months ended September 30, 2017 , the expense from income taxes was unfavorably impacted by approximately $6 million from the cumulative adjustment resulting from the change in our estimated annual tax rate. 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 included 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. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories consist of the following: September 30, December 31, Raw materials $ 44.4 $ 42.9 Work in process 314.7 332.9 Finished goods 1,121.4 936.7 Final price deferred (a) 98.5 — Operating materials and supplies 87.2 78.6 $ 1,666.2 $ 1,391.1 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and, accordingly, the amounts are reported in inventory. |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Mosaic has goodwill of $1.7 billion at September 30, 2017 and $1.6 billion at December 31, 2016, respectively. We review goodwill annually, or more frequently if indicators are present or changes in circumstances suggest that it may be more likely than not that impairment may exist. We perform a formal goodwill impairment test in the fourth quarter of each fiscal year. The changes in the carrying amount of goodwill, by reporting unit, are as follows: Phosphates Potash International Distribution Total Balance as of December 31, 2016 $ 492.4 $ 1,013.6 $ 124.9 $ 1,630.9 Foreign currency translation — 71.3 1.2 72.5 Balance as of September 30, 2017 $ 492.4 $ 1,084.9 $ 126.1 $ 1,703.4 We have three reporting units, and each is assigned a portion of goodwill: Phosphates, Potash, and International Distribution. As of October 31, 2016, we performed our annual quantitative assessment (commonly referred to as a Step One test) using our internal DAP, raw material and MOP price projections which were anchored in projections from CRU International Limited (" CRU "), an independent third party data source, to determine if the fair value of each of our reporting units with goodwill exceeded its carrying value. In making this assessment, we considered, among other things, expectations of projected net sales and cash flows, assumptions impacting the weighted average cost of capital, changes in our stock price and changes in the carrying values of our reporting units with goodwill. We also considered overall business conditions including, among other things, a perception of oversupply in both Phosphates and Potash. Based on our 2016 annual impairment test, no reporting units were considered at risk of impairment. During the third quarter of 2017, subsequent to the annual impairment test of goodwill and other intangible assets with indefinite lives as of October 31, 2016, we elected early adoption of ASU 2017-04 effective January 1, 2017, “Intangibles─Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” As a result, we removed Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. During the three months ended September 30, 2017, we noted impairment indicators related to declines in our common stock price in 2017, and the near term industry outlook which caused us to update our assumptions for the fair values of our reporting units. In performing the interim goodwill impairment test, we estimated the fair value of each of our reporting units using the income approach, also known as the discounted cash flow (" DCF ") method. The income approach utilizes the present value of cash flows to estimate fair value. The future cash flows for our reporting units were projected based on our estimates, at that time, of future revenues, operating income and other factors (such as working capital and capital expenditures for each reporting unit). We assumed sales volume growth rates based on our long-term expectations, selling prices and raw material prices for years one through five, which were anchored with CRU price projections and selling prices and raw material prices for year six and beyond were based on anticipated market growth. The discount rates used in our DCF method were based on a weighted-average cost of capital (" WACC "), determined from relevant market comparisons. A terminal value growth rate of 2% to 2.25% was applied to the final year of the projected period and reflected our estimate of stable growth. We then calculated a present value of the respective cash flows for each reporting unit to arrive at an estimate of fair value under the income approach. Finally, we compared our estimates of fair values for the three reporting units, to our September 30, 2017 total public market capitalization, based on our common stock price of $21.59 at September 29, 2017. Based on our quantitative evaluation, we determined that our Phosphates and Potash reporting units had estimated fair values in excess of their carrying values. As a result, we concluded that the goodwill assigned to the Phosphates and Potash reporting units was not impaired, but could be at risk of future impairment. We continue to believe that our long-term financial goals will be achieved. As a result of our analysis, we did not take a goodwill impairment charge during the three or nine months ended September 30, 2017. The International Distribution reporting unit was evaluated and not considered at risk of goodwill impairment as of September 30, 2017. Since the dates of its last annual goodwill impairment test, there have been certain developments, events, and changes in operating performance that have affected this reporting unit. However, these changes did not cause management to believe it is more likely than not that the fair value of any of the International Distribution reporting unit would be less than its respective carrying amount. Assessing the potential impairment of goodwill involves certain assumptions and estimates in our model that are highly sensitive and include inherent uncertainties that are often interdependent and do not change in isolation such as product prices, raw material costs, WACC, and terminal value growth rate. If any of these are different from our assumptions, future tests may indicate an impairment of goodwill, which would result in non-cash charges, adversely affecting our results of operations. Of the factors discussed above, WACC is more sensitive than others. Assuming that all other components of our fair value estimate remain unchanged, a change in the WACC would have the following effect on estimated fair values in excess of carrying values: Sensitivity Analysis - Percent of Fair Values in Excess of Carrying Values Current WACC WACC Decreased by 50 Basis Points WACC Increased by 50 Basis Points Phosphates Reporting Unit 7% 18% (4)% Potash Reporting Unit 11% 19% 3% We are required to perform our next annual goodwill impairment analysis as of October 31, 2017. It is possible that, during the remainder of 2017 or beyond, business conditions could deteriorate from the current state, raw material or product price projections could decline significantly from current estimates, or our common stock price could decline significantly. If assumed net sales and cash flow projections are not achieved or our common stock price significantly declines from current levels, book values of certain operations could exceed their fair values, which may result in goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material. |
Marketable Securities Held in T
Marketable Securities Held in Trusts | 9 Months Ended |
Sep. 30, 2017 | |
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 cash financial assurance for the estimated costs (" Gypstack Closure Costs ") of closure and long term care of our Florida and Louisiana phosphogypsum management systems (" Gypstacks "), as described further in Note 10 of our Notes to Condensed Consolidated Financial Statements. Our actual Gypstack Closure Costs are generally expected to be paid by us in the normal course of our Phosphate business; however, funds held in each of the RCRA Trusts can be drawn by the applicable governmental authority in the event we cannot perform our closure and long term care obligations. When our estimated Gypstack Closure Costs with respect to the facilities associated with a RCRA Trust are sufficiently lower than the amount on deposit in that RCRA Trust, we have the right to request that the excess funds be released to us. The same is true for the RCRA Trust balance remaining after the completion of our obligations, which will be performed over a period that may not end until three decades or more after a Gypstack has been closed. 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. Amounts reserved to be held or held in the RCRA Trusts (including losses or reinvested earnings) are included in other assets on our Condensed Consolidated Balance Sheets. The RCRA Trusts hold investments, which are restricted from our general use, 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 nine months ended September 30, 2017 . 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 as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 0.9 $ — $ — $ 0.9 Level 2 Corporate debt securities 185.2 0.6 (1.7 ) 184.1 Municipal bonds 183.4 0.7 (2.4 ) 181.7 U.S. government bonds 260.0 — (2.2 ) 257.8 Total $ 629.5 $ 1.3 $ (6.3 ) $ 624.5 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 1.2 $ — $ — $ 1.2 Level 2 Corporate debt securities 180.2 — (4.3 ) 175.9 Municipal bonds 180.9 — (6.6 ) 174.3 U.S. government bonds 257.4 0.1 (0.3 ) 257.2 Total $ 619.7 $ 0.1 $ (11.2 ) $ 608.6 The following tables show 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, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Less than 12 months Less than 12 months Fair Value Gross Unrealized Losses (a) Fair Value Gross Unrealized Losses (a) Corporate debt securities $ 27.7 $ (0.2 ) $ 163.7 $ (4.3 ) Municipal bonds 46.4 (0.2 ) 162.7 (6.6 ) U.S. government bonds 257.8 (2.2 ) 202.3 (0.3 ) Total $ 331.9 $ (2.6 ) $ 528.7 $ (11.2 ) September 30, 2017 December 31, 2016 Greater than 12 months Greater than 12 months Fair Value Gross Unrealized Losses (a) Fair Value Gross Unrealized Losses (a) Corporate debt securities $ 107.1 $ (1.5 ) $ — $ — Municipal bonds 86.5 (2.2 ) — — U.S. government bonds — — — — Total $ 193.6 $ (3.7 ) $ — $ — (a) Represents the aggregate of the gross unrealized losses that have been in a continuous unrealized loss position as of September 30, 2017 and December 31, 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, 2017 . 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, 2017 Due in one year or less $ 26.1 Due after one year through five years 173.6 Due after five years through ten years 379.4 Due after ten years 44.5 Total debt securities $ 623.6 Realized gains and (losses), which were determined on a specific identification basis, were $0.3 million and $(1.9) million , respectively, for the nine months ended September 30, 2017 . |
Asset Retirement Obligations
Asset Retirement Obligations | 9 Months Ended |
Sep. 30, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligation Disclosure | Asset Retirement Obligations As discussed below, we have arrangements to provide financial assurance for the estimated Gypstack Closure Costs associated with our facilities in Florida and Louisiana. EPA RCRA Initiative. On September 30, 2015, we and our subsidiary, Mosaic Fertilizer, LLC (" Mosaic Fertilizer "), reached agreements with the U.S. Environmental Protection Agency (" EPA "), the U.S. Department of Justice (" DOJ "), the Florida Department of Environmental Protection (" FDEP ") and the Louisiana Department of Environmental Quality (the " LDEQ ") on the terms of two consent decrees (collectively, the " 2015 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. This followed a 2003 announcement by the EPA Office of Enforcement and Compliance Assurance 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. As discussed below, a separate consent decree was previously entered into with EPA and the FDEP with respect to RCRA compliance at the Plant City, Florida phosphate concentrates facility (the " Plant City Facility ") that we acquired as part of our acquisition (the " CF Phosphate Assets Acquisition ") of the Florida phosphate assets and assumption of certain related liabilities of CF Industries, Inc. (" CF "). 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 $1.1 million was paid in 2016. Approximately $1.0 million has been spent in the first nine months of 2017. • 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 $250 million in the aggregate, of which approximately $80 million has been spent through September 30, 2017. • Provision of additional financial assurance for the estimated Gypstack Closure Costs for Gypstacks at the covered facilities. The RCRA Trusts are discussed below and in Note 9 to our Condensed Consolidated Financial Statements. We are also required to 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 any earnings) and the estimated closure and long-term care costs. As of December 31, 2016, the undiscounted amount of our Gypstack Closure Costs ARO associated with the facilities covered by the 2015 Consent Decrees, determined using the assumptions used for financial reporting purposes, was approximately $1.4 billion and the present value of our Gypstack Closure Costs ARO reflected in our Consolidated Balance Sheet for those facilities was approximately $414 million . In 2016 we deposited cash, in the total amount of $630 million , into the RCRA Trusts to provide financial assurance as required under the 2015 Consent Decrees. See Note 9 to our Condensed Consolidated Financial Statements. The amount deposited corresponds to a material portion of our estimated Gypstack Closure Costs ARO associated with the covered facilities. Plant City and Bonnie Facilities . 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. For each facility, we have an arrangement in place to provide financial assurance for the facility's estimated Gypstack Closure Costs, pursuant to federal or state law, which the government can utilize in the event we cannot perform the applicable closure activities. For the Plant City Facility, we provide financial assurance in the form of a surety bond that we arranged to be delivered to EPA in September 2016 in the face amount of approximately $260 million (the “ Plant City Bond ”), reflecting our updated closure cost estimates. The surety bond was delivered as a substitute for financial assurance that was previously provided through a trust (the “ Plant City Trust ”). Following EPA's acceptance of the surety bond, approximately $200 million previously held in the Plant City Trust was returned to us and became unrestricted cash. For the Bonnie Facility, we provide financial assurance through a trust fund established to meet the requirements under Florida financial assurance regulations applicable to that facility. 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. 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, 2017 and December 31, 2016 , the aggregate amount of ARO associated with the Plant City and Bonnie Facilities that was included in our consolidated balance sheet was $95.3 million and $93.5 million , respectively. The aggregate amount represented by the Plant City Bond exceeds the aggregate amount of ARO associated with that Facility because the amount of financial assurance we are required to provide 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, whereas the ARO included in our Condensed Consolidated Balance Sheet reflects the discounted present value of those estimated amounts. |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2017 | |
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 $39.7 million and $79.6 million as of September 30, 2017 and December 31, 2016 , 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 FDEP and EPA. In October 2016, Mosaic Fertilizer entered into a consent order (the “ Order ”) with the FDEP relating to the incident under which Mosaic Fertilizer agreed to, among other things: • implement a remediation plan to close the sinkhole; • 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 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 have done 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 the agreed cost of regulators in connection with the incident. The Order did not require payment of civil penalties relating to the incident. In 2016, we recorded expenses and related accruals of approximately $70 million , reflecting our estimated costs related to the sinkhole. At June 30, 2017 we accrued an additional $14 million , in part due to refinements in our estimates as repairs progressed and because we determined that a portion of the sinkhole was wider than previously estimated. As of September 30, 2017, we had incurred approximately $57 million in remediation and sinkhole-related costs and we estimate that the remaining cost to complete and implement the remediation plan and comply with our responsibilities under the Order as described above will be approximately $27 million . There are, however, uncertainties in estimating these costs. Additional expenditures could be required in the future for additional remediation or other measures in connection with the sinkhole including if, for example, 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. EPA RCRA Initiative . We have certain financial assurance and other obligations under consent decrees and a separate financial assurance arrangement relating to our facilities in Florida and Louisiana. These obligations are discussed in Note 10 of our Notes to Condensed Consolidated Financial Statements. 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 a notice of violation 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 the CF 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 the CF 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. We do not expect that any related penalties assessed against us as part of a potential settlement would be material. 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. Phosphate Mine Permitting in Florida Denial of the permits sought at any of our mines, issuance of the permits with cost-prohibitive conditions, substantial delays in issuing the permits, legal actions that prevent us from relying on permits or revocation of permits may create challenges for us to mine the phosphate rock required to operate our Florida and Louisiana phosphate plants at desired levels or increase our costs in the future. The South Pasture Extension . In November 2016, the Army Corps of Engineers (the “ Corps ”) issued a federal wetlands permit under the Clean Water Act for mining an extension of our South Pasture phosphate rock mine in central Florida. On December 20, 2016, the Center for Biological Diversity, ManaSota-88, People for Protecting Peace River and Suncoast Waterkeeper issued a 60-day notice of intent to sue the Corps and the U.S. Fish and Wildlife Service (the “ Service ”) under the federal Endangered Species Act regarding actions taken by the Corps and the Service in connection with the issuance of the permit. On March 15, 2017, the same group filed a complaint against the Corps, the Service and the U.S. Department of the Interior in the U.S. District Court for the Middle District of Florida, Tampa Division. The complaint alleges that various actions taken by the Corps and the Service in connection with the issuance of the permit, including in connection with the Service's biological opinion and the Corps' reliance on that biological opinion, violated substantive and procedural requirements of the federal Clean Water Act (" CWA "), the National Environmental Policy Act (" NEPA ") and the Endangered Species Act (the " ESA "), and were arbitrary, capricious, an abuse of discretion, and otherwise not in accordance with law, in violation of the Administrative Procedure Act (the " APA "). As to the Corps, plaintiffs allege in their complaint, among other things, that the Corps failed to conduct an adequate analysis under the CWA of alternatives, failed to fully consider the effects of the South Pasture extension mine, failed to take adequate steps to minimize potential adverse impacts and violated the ESA by relying on the Service's biological opinion to determine that its permitting decision is not likely to adversely affect certain endangered or rare species. As to the Service, plaintiffs allege in their complaint, among other things, that the Service's biological opinion fails to meet statutory requirements, that the Service failed to properly consider impacts and adequately assess the cumulative effects on certain species, and that the Service violated the ESA in finding that the South Pasture extension mine is not likely to adversely affect certain endangered or rare species. The plaintiffs are seeking relief including (i) declarations that the Corps' decision to issue the permit violated the CWA, NEPA, the ESA and the APA and that its NEPA review violated the law; (ii) declarations that the Service's biological opinion violated applicable law and that the Corps' reliance on the biological opinion violated the ESA; (iii) orders that the Corps rescind the permit, that the Service withdraw its biological opinion and related analyses and prepare a biological opinion that complies with the ESA; and (iv) that the Corps be preliminarily and permanently enjoined from authorizing any further action under the permit until it complies fully with the requirements of the CWA, NEPA, the ESA and the APA. On March 31, 2017, Mosaic's motion for intervention was granted with no restrictions. Plaintiffs filed an amended complaint on June 2, 2017, without any new substantive allegations, and on June 28, 2017, Mosaic (as intervenor) and separately, the defendants, filed answers to the amended complaint. On June 30, 2017, the plaintiffs filed a motion for summary judgment, arguing that the permit should not have been issued. On July 15, 2017, Mosaic filed a response in opposition to the plaintiffs' motion, and on July 28, 2017, Mosaic filed its own motion for summary judgment. We believe the plaintiffs' claims in this case are without merit and we intend to vigorously defend the Corps' issuance of the South Pasture extension permit and the Service's biological opinion. However, if the plaintiffs were to prevail in this case, we would be prohibited from continuing to mine the South Pasture extension, and obtaining new or modified permits could significantly delay our resumption of mining and could result in more onerous mining conditions. This could have a material effect on our future results of operations, reduce future cash flows from operations, and in the longer term, conceivably adversely affect our liquidity and capital resources. 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 partes 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 $127 million . Approximately $96 million of the maximum potential liability relates to credits of PIS and Cofins, which is similar to a Brazilian federal value added tax, for the period from 2004 to 2015; while the majority of the remaining amount relates to various other non-income tax cases such as value-added taxes. The maximum potential liability can increase with new audits. 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. If the status of similar cases involving unrelated taxpayers changes in the future, our maximum exposure could increase in the future and additional accruals could be required. 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, 2017 | |
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, interest rate movements 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, commodity and freight derivatives are immediately recognized in earnings because we do not apply hedge accounting treatment to these instruments. As of September 30, 2017 and December 31, 2016 , the gross asset position of our derivative instruments was $30.9 million and $16.2 million , respectively, and the gross liability position of our liability instruments was $22.4 million and $17.3 million , respectively. We do not apply hedge accounting treatments to our foreign currency exchange contracts, commodities contracts, or freight contracts. 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 and certain forward freight agreements 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. We apply fair value hedge accounting treatment to our fixed-to-floating interest rate contracts. Under these arrangements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The mark-to-market of these fair value hedges is recorded as gains or losses in interest expense. These fair value hedges are considered to be highly effective and, thus, as of September 30, 2017 , the impact on earnings due to hedge ineffectiveness was immaterial. Consistent with Mosaic's intent to have floating rate debt as a portion of its outstanding debt, as of September 30, 2017 we held fixed-to-floating interest rate swap agreements related to our 4.25% senior notes due 2023. As of September 30, 2017 , we hold forward starting interest rate swap agreements to hedge our exposure to changes in future interest rates related to an anticipated debt issuance to fund the cash portion of our planned acquisition of Vale Fertilizantes S.A. as described in Note 15. We do not apply hedge accounting treatment to these contracts and cash is expected to be settled at the time of pricing of the related debt issuance. These agreements had a negative impact on pre-tax earnings of approximately $10 million for the nine month period ended September 30, 2017 . As of September 30, 2017 and December 31, 2016 , 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 869.7 949.9 Interest rate derivatives - fixed-to-floating Interest rate US Dollars 585.0 310.0 Interest rate derivatives - preissuance Interest rate US Dollars 800.0 100.0 Natural gas derivatives Commodity MMbtu 48.5 21.7 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, 2017 and December 31, 2016 , was $14.9 million and $6.0 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, 2017 , we would have been required to post $13.7 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, 2017 | |
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, 2017 and December 31, 2016 , the gross asset position of our foreign currency derivative instruments was $25.7 million and $8.3 million , respectively, and the gross liability position of our foreign currency derivative instruments was $2.6 million and $14.6 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, 2017 and December 31, 2016 , the gross asset position of our commodity derivative instruments was $1.4 million and $6.3 million , respectively, and the gross liability position of our commodity instruments was $9.2 million and $1.3 million , respectively. Interest Rate Derivatives -We manage interest expense through interest rate contracts to convert a portion of our fixed-rate debt into floating-rate debt. We also enter into interest rate swap agreements to hedge our exposure to changes in future interest rates related to anticipated debt issuances. Valuations are based on external pricing sources and are classified as Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of interest expense. As of September 30, 2017 and December 31, 2016 , the gross asset position of our interest rate swap instruments was $3.8 million and $1.6 million , respectively, and the gross liability position of our interest rate swap instruments was $10.6 million and $1.4 million , respectively. Financial Instruments The carrying amounts and estimated fair values of our financial instruments are as follows: September 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 685.7 $ 685.7 $ 673.1 $ 673.1 Receivables, net 592.3 592.3 627.8 627.8 Accounts payable 547.9 547.9 471.8 471.8 Structured accounts payable arrangements 370.4 370.4 128.8 128.8 Short-term debt 58.6 58.6 0.1 0.1 Long-term debt, including current portion 3,856.5 3,999.1 3,818.1 3,854.8 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, 2017 | |
Stockholders' Equity Note [Abstract] | |
Share Repurchases | Share Repurchases On May 14, 2015, our Board of Directors authorized a $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. In February 2016, under the 2015 Repurchase Program, we entered into an accelerated share repurchase transaction (" ASR ") with a financial institution to repurchase shares of our Common Stock for an up-front payment of $75 million . The total number of shares ultimately delivered, which was 2,766,558 , and the average price paid per share of $27.11 , 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 was accounted for as a reduction to shareholders’ equity in our Condensed Consolidated Balance Sheet in the period the payment was made. The ASR was not dilutive to our earnings per share calculation from its execution date through its settlement date. The unsettled portion of the 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. No share repurchases occurred in the nine months ended September 30, 2017. As of September 30, 2017 , 15,765,025 shares of Common Stock had been repurchased under the 2015 Repurchase Program for an aggregate total of approximately $650 million . The remaining amount available for repurchases under this program is $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, 2017 | |
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, 2017 and December 31, 2016 , the net amount due to our non-consolidated companies totaled $95.4 million and $21.7 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, 2017 2016 2017 2016 Transactions with non-consolidated companies included in net sales $ 211.7 $ 179.4 $ 543.3 $ 467.8 Transactions with non-consolidated companies included in cost of goods sold 301.5 125.8 717.8 453.3 |
Proposed Acquisition of Vale Fe
Proposed Acquisition of Vale Fertilizantes S.A. | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure | Proposed Acquisition of Vale Fertilizantes S.A. On December 19, 2016, we entered into an agreement (the “ Stock Purchase Agreement ”) with Vale S.A. (“ Vale ”) and Vale Fertilizer Netherlands B.V. (together with Vale and certain of its affiliates, the “ Sellers ”) to acquire all of the issued and outstanding capital stock of Vale Fertilizantes S.A. (“ Vale Fertilizantes ”), the entity that conducts Vale's global phosphate and potash operations, for a purchase price of (i) $1.25 billion in cash and (ii) 42,286,874 shares of our Common Stock, par value $0.01 per share (“ Common Stock ”). The cash portion of the purchase price is subject to adjustments based on matters such as the working capital and indebtedness balances of Vale Fertilizantes at the time of the closing. In addition, Mosaic has agreed to pay an additional amount in cash of up to $260 million if certain thresholds relating to the pricing of monoammonium phosphate (“ MAP ”) and the strength of the Brazilian real over the two year-period following the closing of the acquisition are satisfied. As part of the transaction, we will acquire the Sellers’ 40% economic interest in the joint venture which owns the Miski Mayo phosphate rock mine in the Bayovar region of Peru, in which we already hold a 35% economic interest, and Vale’s potash project at Kronau, Saskatchewan. The agreement also included an option for us to include the Sellers' Rio Colorado, Argentina potash project as part of the transaction. We did not exercise the option and it expired at the end of June 2017. The acquisition is subject to closing conditions including the transfer to affiliates of Vale of certain industrial complexes located in the City of Cubatão (the “ Cubatão Business ”) that are operated by Vale Fertilizantes and its subsidiaries; the expiration or termination of the applicable waiting period under U.S. antitrust law and antitrust approvals in Brazil and Canada; the achievement of other specified regulatory and operational milestones; the absence of any governmental restraint due to the recent water loss incident at our New Wales facility in Florida that results in a reduction or suspension of operations or increased operating costs at the facility and would reasonably be expected to materially adversely impact Mosaic and its subsidiaries, taken as a whole; and other customary closing conditions. In February 2017 we received notice from the U.S. Federal Trade Commission that it had granted early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, in May 2017 we received regulatory clearance under the Competition Act (Canada) and on July 31, 2017 the Brazilian Administrative Council of Economic Defense, or CADE, approved the transaction unconditionally. In addition, the actions necessary to complete the required transfer of the Cubatão Business are now substantially complete. The Stock Purchase Agreement contains certain termination rights for both Mosaic and the Sellers, including if the transaction has not been consummated by December 31, 2017. Mosaic has also agreed to enter into an investor agreement (“ Investor Agreement ”) with Vale as of the closing of the transaction that will provide Vale with certain rights to designate up to two individuals to Mosaic’s board of directors. Under the Investor Agreement, Vale or its affiliates receiving the shares of Common Stock to be issued by us (the “ Vale Stockholders ”) will be subject to certain transfer and standstill restrictions. In addition, until the later of the third anniversary of the closing and the date on which our board of directors no longer includes any Vale designees, the Vale Stockholders will agree to vote their shares of our stock (i) with respect to the election of directors, in accordance with the recommendation of our board of directors and (ii) with respect to any other proposal or resolution, at their election, either in the same manner as and in the same proportion to all voting securities that are not beneficially held by the Vale Stockholders are voted, or in accordance with the recommendation of our board of directors. Also under the Investor Agreement, the Vale Stockholders will be entitled to certain demand and to customary piggyback registration rights, beginning on the second anniversary of the closing of the transaction. Subject to satisfaction of the remaining regulatory and closing conditions, the transaction is expected to close in late 2017, although there can be no assurance that the closing will occur within the expected timeframe or at all. |
Business Segments
Business Segments | 9 Months Ended |
Sep. 30, 2017 | |
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 Streamsong Resort ® results of operations are included within Corporate, Eliminations and Other. Segment information for the three and nine months ended September 30, 2017 and 2016 was as follows: Phosphates Potash International Distribution Corporate, Eliminations and Other Total Three months ended September 30, 2017 Net sales to external customers $ 579.5 $ 469.9 $ 930.5 $ 4.9 $ 1,984.8 Intersegment net sales 199.5 4.2 0.3 (204.0 ) — Net sales 779.0 474.1 930.8 (199.1 ) 1,984.8 Gross margin 66.7 98.6 63.6 11.9 240.8 Canadian resource taxes — (4.7 ) — — (4.7 ) Gross margin (excluding Canadian resource taxes) 66.7 93.9 63.6 11.9 236.1 Operating earnings (loss) 88.3 76.9 45.6 3.1 213.9 Depreciation, depletion and amortization expense 86.3 72.7 4.3 5.5 168.8 Capital expenditures 86.7 102.3 3.9 4.7 197.6 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 252.9 5.7 0.3 (258.9 ) — Net sales 929.6 428.1 848.5 (254.0 ) 1,952.2 Gross margin 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 Nine months ended September 30, 2017 Net sales to external customers $ 1,946.8 $ 1,346.6 $ 2,000.3 $ 23.8 $ 5,317.5 Intersegment net sales 645.8 9.8 0.7 (656.3 ) — Net sales 2,592.6 1,356.4 2,001.0 (632.5 ) 5,317.5 Gross margin 199.3 277.9 130.8 (45.3 ) 562.7 Canadian resource taxes — 51.6 — — 51.6 Gross margin (excluding Canadian resource taxes) 199.3 329.5 130.8 (45.3 ) 614.3 Operating earnings (loss) 134.8 198.0 78.3 (72.5 ) 338.6 Depreciation, depletion and amortization expense 249.3 213.8 12.9 17.5 493.5 Capital expenditures 291.2 269.1 17.3 12.3 589.9 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 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 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 Total Assets As of September 30, 2017 $ 7,403.3 $ 8,237.3 $ 1,764.5 $ 398.0 $ 17,803.1 As of December 31, 2016 7,679.7 7,777.9 1,477.1 (94.0 ) 16,840.7 |
Guarantee
Guarantee | 9 Months Ended |
Sep. 30, 2017 | |
Guarantees [Abstract] | |
Guarantee | Guarantee Guarantee of Payments In 2015, Mosaic 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 intended to transport anhydrous ammonia, primarily for Mosaic’s operations. In January 2017, the parties agreed to increase the Bridge Loan from $185 million to $235 million . GMS is a wholly owned subsidiary of Gulf Sulphur Services Ltd., LLLP (" Gulf Sulphur Services "), an entity in which Mosaic and Savage Companies (" Savage ") each indirectly own a 50% equity interest and for which a subsidiary of Savage provides operating and management services. A separate Savage subsidiary (" Savage Sub ") entered into agreements for the construction, utilizing funds borrowed from GMS. Beginning in 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. During 2016, at Mosaic's instruction, Savage Sub notified the barge builder of its election under the construction contract to cancel construction of the second barge unit. Construction of the first barge unit and the two tugs continued as planned, and the first unit has been delivered to Savage Sub . At September 30, 2017 , $223.7 million was outstanding under the Bridge Loan, and GMS had received additional loans from Gulf Sulphur Services in the aggregate amount of $53.7 million for the project, which are included in long-term debt in our Condensed Consolidated Balance Sheets. These loans obtained by GMS were in turn lent to Savage Sub for use in constructing the units. In connection with the project, Mosaic also agreed to guarantee up to $100 million of payment obligations under the barge construction agreement to the barge builder. The guarantee will remain in effect until final payment under the construction agreement is made. The fair value of our commitment under this guarantee at September 30, 2017 is not material. On October 24, 2017, a lease financing transaction was completed with respect to the first completed unit as described in Note 19. Following the application of proceeds from the transaction, all outstanding loans to GMS and Gulf Sulphur Services, together with accrued interest, were repaid, and the Bridge Loan was paid in full. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Ammonia ATB Lease Financing . On October 24, 2017, Tampa Port Services, LLC (" TPS "), a wholly owned subsidiary of the Company, entered into a time charter with an affiliate of Savage (" Savage Harvest ") to obtain use of the completed articulated tug and barge unit referred to in Note 18 (the " ATB ") for the transportation of anhydrous ammonia for a term ending on December 31, 2024, unless otherwise terminated or extended. Savage Sub sold the ATB to a subsidiary of The Bank of Tokyo-Mitsubishi UFJ, Ltd. (" Owner ") for a purchase price of $230 million , and the Owner then chartered the ATB to Savage Harvest under a separate bareboat charter. The Owner funded the ATB purchase price through a separate loan agreement with certain lenders party thereto (" Lenders "). Under the time charter, TPS has agreed to pay for the use and hire of the ATB through payment of a sum sufficient to cover the amounts payable by Savage Harvest under the bareboat charter. These include basic hire that is based on the amortization of a portion of the ATB purchase price over the term and a final balloon payment of approximately $132 million , other agreed fees, costs and expenses, and supplemental hire (including additional amounts that may become payable under the bareboat charter for certain indemnification obligations in favor of the Owner and the Lenders and in connection with an acceleration of payment obligations under the bareboat charter). The time charter is a “hell or high water” charter and TPS's obligation to pay basic and supplemental hire is absolute and unconditional. Under certain circumstances, TPS’s payment obligations under the time charter could be accelerated, including following certain events of default. Mosaic has guaranteed the obligations of TPS under the time charter. The guaranty includes covenants to comply with certain covenants contained in the Company's revolving credit agreement entered into on November 18, 2016, including maintaining a ratio of Consolidated Indebtedness to Consolidated Capitalization (as defined) of no greater than 0.65 to 1.0, and a minimum Interest Coverage Ratio (as defined) of not less than 3.0 to 1.0. A default under the time charter may occur in the event of certain breaches by Mosaic of these covenants beyond any applicable cure periods. Idling . On October 30, 2017, we determined to temporarily idle our Plant City, Florida phosphate manufacturing facility for at least one year. We expect to recognize severance expense of up to $20 million in the fourth quarter of 2017 related to this idling and are also in the process of requesting a related regulatory approval. Dividend Action . On October 31, 2017, our board of directors approved a reduction in our annual dividend from $0.60 per share to $0.10 per share and, based on the new target, approved a quarterly dividend of $0.025 per share to be paid on December 21, 2017 to stockholders of record as of close of business on December 7, 2017. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2016 (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. |
Transfers and Servicing of Financial Assets, Transfers of Financial Assets, Financings, Policy | Brazil Securitization In March 2017, Mosaic transferred trade receivables originated by a Brazilian subsidiary of Mosaic to a securitization entity as part of a three -year revolving trade receivables securitization that is also intended to facilitate additional credit to our customers. In return for the transfer of trade receivables, Mosaic's Brazil subsidiary received cash plus a $5.2 million subordinated investment in the securitization entity. Mosaic is exposed to losses on these receivables through its subordinated first loss interest in the securitization issuance which is generally limited to the subordinated investment. Mosaic has the obligation to repurchase receivables from the securitization entity in certain circumstances and provide additional funding, if needed, to cover certain transaction expenses. Mosaic has accounted for this transaction as a secured borrowing and we continue to report the related accounts receivable on our balance sheet. At September 30, 2017, the amount of short-term debt related to this arrangement was $4.0 million . |
Change In Accounting Estimate Description | Change in Method of Depreciation and Estimated Useful Lives of Property and Equipment We have worked extensively to ensure the mechanical integrity of our fixed assets in order to help prolong their useful lives, while helping to ensure optimal asset utilization. Additionally, in the fourth quarter of 2016, we announced plans to significantly reduce future capital expenditure levels in order to preserve cash. As a result, we completed an in-depth review of our fixed assets and concluded that for certain assets, we would make a change to the units-of-production depreciation method from the straight-line method to better reflect the pattern of consumption of those assets. We also determined the expected lives of certain mining and production equipment and reserves were longer than the previously estimated useful lives used to determine depreciation in our financial statements. As a result, effective January 1, 2017, we changed our estimates of the useful lives and method of determining the depreciation of certain equipment to better reflect the estimated periods during which these assets will remain in service. The effect of this change in estimates is expected to reduce 2017 depreciation expense, thus increasing operating earnings, by approximately $70 million in 2017. Amounts may vary throughout the year due to changes in production levels. As a result of this change and actions taken to prolong asset lives, we expect our maintenance expense to increase in the future. |
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 annually, or more frequently if indicators are present or changes in circumstances suggest that it may be more likely than not that impairment may exist. We perform a formal goodwill impairment test in the fourth quarter of each fiscal year. |
Marketable Securities Held in Trust | The RCRA Trusts hold investments, which are restricted from our general use, 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. 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. Interest Rate Derivatives -We manage interest expense through interest rate contracts to convert a portion of our fixed-rate debt into floating-rate debt. We also enter into interest rate swap agreements to hedge our exposure to changes in future interest rates related to anticipated debt issuances. Valuations are based on external pricing sources and are classified as Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of interest expense. 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, 2017 | |
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) $ 5.5 $ 31.6 Income and other taxes receivable 232.9 146.3 Prepaid expenses 116.6 99.9 Other 76.3 87.9 $ 431.3 $ 365.7 Other assets MRO inventory $ 112.8 $ 115.6 Marketable securities held in trust 628.9 611.0 Restricted cash 33.2 31.3 Other 349.0 296.2 $ 1,123.9 $ 1,054.1 Accrued liabilities Accrued dividends $ 3.2 $ 101.8 Payroll and employee benefits 126.5 142.9 Asset retirement obligations 103.5 102.0 Customer prepayments 183.1 145.6 Other 370.4 345.0 $ 786.7 $ 837.3 Other noncurrent liabilities Asset retirement obligations $ 747.9 $ 747.9 Accrued pension and postretirement benefits 60.4 64.9 Unrecognized tax benefits 32.7 27.2 Other 113.9 112.9 $ 954.9 $ 952.9 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Amounts in this account are based on inventory cost. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and the amounts are retained in inventory. See Note 7. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Net earnings attributable to Mosaic $ 227.5 $ 39.2 $ 323.9 $ 285.9 Basic weighted average number of shares outstanding 351.1 350.1 350.9 350.4 Dilutive impact of share-based awards 1.1 1.4 1.0 1.3 Diluted weighted average number of shares outstanding 352.2 351.5 351.9 351.7 Basic net earnings per share attributable to Mosaic $ 0.65 $ 0.11 $ 0.92 $ 0.82 Diluted net earnings per share attributable to Mosaic $ 0.65 $ 0.11 $ 0.92 $ 0.81 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consist of the following: September 30, December 31, Raw materials $ 44.4 $ 42.9 Work in process 314.7 332.9 Finished goods 1,121.4 936.7 Final price deferred (a) 98.5 — Operating materials and supplies 87.2 78.6 $ 1,666.2 $ 1,391.1 (a) Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and, accordingly, the amounts are reported in inventory. |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Sensitivity Analysis WACC | Assuming that all other components of our fair value estimate remain unchanged, a change in the WACC would have the following effect on estimated fair values in excess of carrying values: Sensitivity Analysis - Percent of Fair Values in Excess of Carrying Values Current WACC WACC Decreased by 50 Basis Points WACC Increased by 50 Basis Points Phosphates Reporting Unit 7% 18% (4)% Potash Reporting Unit 11% 19% 3% |
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, 2016 $ 492.4 $ 1,013.6 $ 124.9 $ 1,630.9 Foreign currency translation — 71.3 1.2 72.5 Balance as of September 30, 2017 $ 492.4 $ 1,084.9 $ 126.1 $ 1,703.4 |
Marketable Securities Held in34
Marketable Securities Held in Trusts (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale investments | The estimated fair value of the investments in the RCRA Trusts as of September 30, 2017 and December 31, 2016 are as follows: September 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 0.9 $ — $ — $ 0.9 Level 2 Corporate debt securities 185.2 0.6 (1.7 ) 184.1 Municipal bonds 183.4 0.7 (2.4 ) 181.7 U.S. government bonds 260.0 — (2.2 ) 257.8 Total $ 629.5 $ 1.3 $ (6.3 ) $ 624.5 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Level 1 Cash and cash equivalents $ 1.2 $ — $ — $ 1.2 Level 2 Corporate debt securities 180.2 — (4.3 ) 175.9 Municipal bonds 180.9 — (6.6 ) 174.3 U.S. government bonds 257.4 0.1 (0.3 ) 257.2 Total $ 619.7 $ 0.1 $ (11.2 ) $ 608.6 |
Fair value of available-for-sale debt securities in an unrealized loss position | The following tables show 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, 2017 and December 31, 2016 . September 30, 2017 December 31, 2016 Less than 12 months Less than 12 months Fair Value Gross Unrealized Losses (a) Fair Value Gross Unrealized Losses (a) Corporate debt securities $ 27.7 $ (0.2 ) $ 163.7 $ (4.3 ) Municipal bonds 46.4 (0.2 ) 162.7 (6.6 ) U.S. government bonds 257.8 (2.2 ) 202.3 (0.3 ) Total $ 331.9 $ (2.6 ) $ 528.7 $ (11.2 ) September 30, 2017 December 31, 2016 Greater than 12 months Greater than 12 months Fair Value Gross Unrealized Losses (a) Fair Value Gross Unrealized Losses (a) Corporate debt securities $ 107.1 $ (1.5 ) $ — $ — Municipal bonds 86.5 (2.2 ) — — U.S. government bonds — — — — Total $ 193.6 $ (3.7 ) $ — $ — (a) Represents the aggregate of the gross unrealized losses that have been in a continuous unrealized loss position as of September 30, 2017 and December 31, 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, 2017 . 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, 2017 Due in one year or less $ 26.1 Due after one year through five years 173.6 Due after five years through ten years 379.4 Due after ten years 44.5 Total debt securities $ 623.6 |
Accounting for Derivative Notio
Accounting for Derivative Notional Amounts (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule Of Derivative Instruments Notional Amounts | As of September 30, 2017 and December 31, 2016 , 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 869.7 949.9 Interest rate derivatives - fixed-to-floating Interest rate US Dollars 585.0 310.0 Interest rate derivatives - preissuance Interest rate US Dollars 800.0 100.0 Natural gas derivatives Commodity MMbtu 48.5 21.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Cash and cash equivalents $ 685.7 $ 685.7 $ 673.1 $ 673.1 Receivables, net 592.3 592.3 627.8 627.8 Accounts payable 547.9 547.9 471.8 471.8 Structured accounts payable arrangements 370.4 370.4 128.8 128.8 Short-term debt 58.6 58.6 0.1 0.1 Long-term debt, including current portion 3,856.5 3,999.1 3,818.1 3,854.8 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
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, 2017 2016 2017 2016 Transactions with non-consolidated companies included in net sales $ 211.7 $ 179.4 $ 543.3 $ 467.8 Transactions with non-consolidated companies included in cost of goods sold 301.5 125.8 717.8 453.3 |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | Segment information for the three and nine months ended September 30, 2017 and 2016 was as follows: Phosphates Potash International Distribution Corporate, Eliminations and Other Total Three months ended September 30, 2017 Net sales to external customers $ 579.5 $ 469.9 $ 930.5 $ 4.9 $ 1,984.8 Intersegment net sales 199.5 4.2 0.3 (204.0 ) — Net sales 779.0 474.1 930.8 (199.1 ) 1,984.8 Gross margin 66.7 98.6 63.6 11.9 240.8 Canadian resource taxes — (4.7 ) — — (4.7 ) Gross margin (excluding Canadian resource taxes) 66.7 93.9 63.6 11.9 236.1 Operating earnings (loss) 88.3 76.9 45.6 3.1 213.9 Depreciation, depletion and amortization expense 86.3 72.7 4.3 5.5 168.8 Capital expenditures 86.7 102.3 3.9 4.7 197.6 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 252.9 5.7 0.3 (258.9 ) — Net sales 929.6 428.1 848.5 (254.0 ) 1,952.2 Gross margin 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 Nine months ended September 30, 2017 Net sales to external customers $ 1,946.8 $ 1,346.6 $ 2,000.3 $ 23.8 $ 5,317.5 Intersegment net sales 645.8 9.8 0.7 (656.3 ) — Net sales 2,592.6 1,356.4 2,001.0 (632.5 ) 5,317.5 Gross margin 199.3 277.9 130.8 (45.3 ) 562.7 Canadian resource taxes — 51.6 — — 51.6 Gross margin (excluding Canadian resource taxes) 199.3 329.5 130.8 (45.3 ) 614.3 Operating earnings (loss) 134.8 198.0 78.3 (72.5 ) 338.6 Depreciation, depletion and amortization expense 249.3 213.8 12.9 17.5 493.5 Capital expenditures 291.2 269.1 17.3 12.3 589.9 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 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 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 Total Assets As of September 30, 2017 $ 7,403.3 $ 8,237.3 $ 1,764.5 $ 398.0 $ 17,803.1 As of December 31, 2016 7,679.7 7,777.9 1,477.1 (94.0 ) 16,840.7 |
Organization and Nature of Bu39
Organization and Nature of Business (Details) | 9 Months Ended |
Sep. 30, 2017 | |
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% |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details) $ in Millions | Sep. 30, 2017USD ($) |
Accounting Policies [Abstract] | |
Expected Annualized Impact Of Change In Estimate On Depreciation And Operating Income | $ 70 |
Length Of Securitization Agreement | 3 |
Transferor's Interests in Transferred Financial Assets, Fair Value | $ 5.2 |
Secured Borrowings, Gross Including Not Subject to Master Netting Arrangement | $ 4 |
Recently Issued Accounting Gu41
Recently Issued Accounting Guidance (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||
Restricted Cash | $ 38.3 | $ 860.7 |
Other Financial Statement Dat42
Other Financial Statement Data (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Other current assets | ||||
Final price deferred | [1] | $ 5.5 | $ 31.6 | |
Income and other taxes receivable | 232.9 | 146.3 | ||
Prepaid expenses | 116.6 | 99.9 | ||
Other | 76.3 | 87.9 | ||
Total other current assets | 431.3 | 365.7 | ||
Other assets | ||||
MRO inventory | 112.8 | 115.6 | ||
Marketable securities held in trust | 628.9 | 611 | ||
Restricted cash | 33.2 | 31.3 | $ 58.2 | |
Other | 349 | 296.2 | ||
Total other assets | 1,123.9 | 1,054.1 | ||
Accrued liabilities | ||||
Dividends Payable | 3.2 | 101.8 | ||
Payroll and employee benefits | 126.5 | 142.9 | ||
Asset retirement obligations | 103.5 | 102 | ||
Customer prepayments | 183.1 | 145.6 | ||
Other | 370.4 | 345 | ||
Total accrued liabilities, current | 786.7 | 837.3 | ||
Other noncurrent liabilities | ||||
Asset retirement obligations | 747.9 | 747.9 | ||
Accrued pension and postretirement benefits | 60.4 | 64.9 | ||
Unrecognized tax benefits | 32.7 | 27.2 | ||
Other | 113.9 | 112.9 | ||
Total other noncurrent liabilities | $ 954.9 | $ 952.9 | ||
[1] | Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Amounts in this account are based on inventory cost. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and the amounts are retained in inventory. See Note 7. |
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net earnings attributable to Mosaic | $ 227.5 | $ 39.2 | $ 323.9 | $ 285.9 |
Basic weighted average number of shares outstanding | 351.1 | 350.1 | 350.9 | 350.4 |
Dilutive impact of share-based awards | 1.1 | 1.4 | 1 | 1.3 |
Diluted weighted average number of shares outstanding | 352.2 | 351.5 | 351.9 | 351.7 |
Basic net earnings per share attributable to Mosaic | $ 0.65 | $ 0.11 | $ 0.92 | $ 0.82 |
Diluted net earnings per share attributable to Mosaic | $ 0.65 | $ 0.11 | $ 0.92 | $ 0.81 |
Shares subject to issuance upon exercise of stock options excluded from the calculation of diluted earnings per share | 3.4 | 2.6 | 3.5 | 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Interest And Penalties [Abstract] | |||||
Change in unrecognized tax benefit | $ 10.1 | ||||
Unrecognized tax benefits | $ 37.2 | 37.2 | |||
Unrecognized tax benefits that would impact effective tax rate | 18 | 18 | |||
Unrecognized tax benefits, income tax penalties and interest accrued | 3.3 | 3.3 | $ 3.2 | ||
Income Tax (Expense) Benefit, Continuing Operations [Abstract] | |||||
Effective income tax rate reconciliation, other expense (benefit) reconciling items, amount | 12.4 | $ (1.6) | 5.1 | $ 60.7 | |
Effective income tax rate reconciliation, resolution of Advanced Pricing Agreement, amount | 85.8 | ||||
Effective income tax rate reconciliation, benefit from non-U.S. audit activity | (2.4) | ||||
Effective income tax rate reconciliation, distributions from certain non-U.S. subsidiaries, amount | 17.9 | ||||
Effective income tax rate reconciliation, other expense (benefit) adjustments, amount | (6) | (8.3) | |||
Effective income tax rate reconciliation, change in estimates related to prior years | (2) | $ (4.8) | $ 7.2 | ||
Document Fiscal Year Focus | 2,017 | ||||
CANADA | |||||
Tax Credit Carryforward [Line Items] | |||||
Income tax expense (benefit), Change in tax rate | $ 21.9 | ||||
Increase royalty payables from royalty resolution | 10.4 | ||||
PERU | |||||
Tax Credit Carryforward [Line Items] | |||||
Income tax expense (benefit), Change in tax rate | $ (6.7) | ||||
Settlement with Taxing Authority [Member] | CANADA | |||||
Tax Credit Carryforward [Line Items] | |||||
Discrete item from royalty resolution | $ 16.8 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 44.4 | $ 42.9 | |
Work in process | 314.7 | 332.9 | |
Finished goods | 1,121.4 | 936.7 | |
Other Inventory, Inventory at off Site Premises, Gross | [1] | 98.5 | 0 |
Operating materials and supplies | 87.2 | 78.6 | |
Total Inventory | $ 1,666.2 | $ 1,391.1 | |
[1] | Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon. For arrangements entered into prior to January 1, 2017, this was not included in inventory as risk of loss had passed to our customers. Beginning in 2017, the provisions of these arrangements changed so that risk of loss does not pass to the customer until the time control transfers and, accordingly, the amounts are reported in inventory. |
Goodwill (Details)
Goodwill (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 29, 2017$ / shares | |
Goodwill [Line Items] | |||
Number of Reporting Units | 3 | ||
Beginning Balance | $ 1,630.9 | ||
Foreign currency translation | 72.5 | ||
Ending Balance | $ 1,703.4 | 1,703.4 | |
Share Price | $ / shares | $ 21.59 | ||
Phosphates Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | 492.4 | ||
Foreign currency translation | 0 | ||
Ending Balance | $ 492.4 | $ 492.4 | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 7.00% | 7.00% | |
Potash Segment | |||
Goodwill [Line Items] | |||
Beginning Balance | $ 1,013.6 | ||
Foreign currency translation | 71.3 | ||
Ending Balance | $ 1,084.9 | $ 1,084.9 | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 11.00% | 11.00% | |
International Distribution | |||
Goodwill [Line Items] | |||
Beginning Balance | $ 124.9 | ||
Foreign currency translation | 1.2 | ||
Ending Balance | $ 126.1 | $ 126.1 | |
Minimum | |||
Goodwill [Line Items] | |||
Terminal Value Growth Rate | 2.00% | ||
Maximum | |||
Goodwill [Line Items] | |||
Terminal Value Growth Rate | 2.25% |
Goodwill Sensitivity Analysis (
Goodwill Sensitivity Analysis (Details) | Sep. 30, 2017 |
Phosphates Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 7.00% |
Potash Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 11.00% |
WACC fifty basis point increase | Phosphates Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | (4.00%) |
WACC fifty basis point increase | Potash Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 3.00% |
WACC fifty basis point decrease | Phosphates Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 18.00% |
WACC fifty basis point decrease | Potash Segment | |
Sensitivity Analysis [Line Items] | |
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 19.00% |
Marketable Securities Held in48
Marketable Securities Held in Trusts (Details) $ in Millions | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Aug. 31, 2016USD ($) |
Investments, Debt and Equity Securities [Abstract] | |||
Amount deposited by Mosaic into the RCRA Trusts | $ 630 | ||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | $ 629.5 | $ 619.7 | |
Gross unrealized gains | 1.3 | 0.1 | |
Gross unrealized losses | (6.3) | (11.2) | |
Estimated fair value | $ 624.5 | 608.6 | |
Number Of Decades Remaining For Trust | 3 | ||
Cash and Cash Equivalents | Level 1 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | $ 0.9 | 1.2 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized losses | 0 | 0 | |
Estimated fair value | 0.9 | 1.2 | |
Corporate debt securities | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 185.2 | 180.2 | |
Gross unrealized gains | 0.6 | 0 | |
Gross unrealized losses | (1.7) | (4.3) | |
Estimated fair value | 184.1 | 175.9 | |
Municipal bonds | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 183.4 | 180.9 | |
Gross unrealized gains | 0.7 | 0 | |
Gross unrealized losses | (2.4) | (6.6) | |
Estimated fair value | 181.7 | 174.3 | |
U.S. government bonds | Level 2 | |||
Available-for-sale Securities, Fair Value to Amortized Cost Basis | |||
Amortized cost | 260 | 257.4 | |
Gross unrealized gains | 0 | 0.1 | |
Gross unrealized losses | (2.2) | (0.3) | |
Estimated fair value | $ 257.8 | $ 257.2 |
Marketable Securities Held in49
Marketable Securities Held in Trusts - Continuous Loss Position (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | ||
Available-for-sale securities, less than twelve months, fair value | $ 331.9 | $ 528.7 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (2.6) | (11.2) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 193.6 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 3.7 | 0 |
Corporate debt securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | ||
Available-for-sale securities, less than twelve months, fair value | 27.7 | 163.7 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (0.2) | (4.3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 107.1 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 1.5 | 0 |
Municipal bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | ||
Available-for-sale securities, less than twelve months, fair value | 46.4 | 162.7 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (0.2) | (6.6) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 86.5 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 2.2 | 0 |
U.S. government bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | ||
Available-for-sale securities, less than twelve months, fair value | 257.8 | 202.3 |
Available-for-sale securities, less than twelve months, gross unrealized losses | (2.2) | (0.3) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 0 | 0 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 0 | $ 0 |
Marketable Securities Held in50
Marketable Securities Held in Trusts - Maturity Dates and Realized Gain and Loss(Details) - Debt securities $ in Millions | 9 Months Ended |
Sep. 30, 2017USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |
Available-for-sale Securities, Gross Realized Gains | $ 0.3 |
Gross realized losses | (1.9) |
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity | |
Available-for-sale debt maturities due within one year, fair value | 26.1 |
Available-for-sale debt maturities, after 1 but within 5 years, fair value | 173.6 |
Available-for-sale debt maturities, after 5 but within 10 years, fair value | 379.4 |
Available-for-sale debt maturities, after 10 years, fair value | 44.5 |
Available-for-sale Securities, Debt Securities | $ 623.6 |
Asset Retirement Obligation (De
Asset Retirement Obligation (Details) $ in Millions | Aug. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
ARO Loss Contingencies [Line Items] | ||||||
Number Of Consent Decrees | 2 | 2 | ||||
Capital expenditures | $ 197.6 | $ 196.4 | $ 589.9 | $ 633.7 | ||
Amount deposited by Mosaic into the RCRA Trusts | $ 630 | |||||
Asset retirement obligations | $ 747.9 | $ 747.9 | $ 747.9 | |||
Number Of Decades Remaining For Trust | 3 | 3 | ||||
2015 Consent Decrees With EPA | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Amount deposited by Mosaic into the RCRA Trusts | 630 | |||||
Penalty [Member] | 2015 Consent Decrees With EPA | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Payment related to loss contingency liability | 8 | |||||
Unfavorable Regulatory Action | 2015 Consent Decrees With EPA | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Payment related to loss contingency liability | $ 250 | |||||
Capital expenditures | $ 80 | |||||
Future capital expenditures | 1 | 1.1 | ||||
Asset retirement obligations, undiscounted | 1,400 | |||||
Asset Retirement Obligation | 414 | |||||
Plant City Trust [Member] | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Assets Held-in-trust, Current | $ 200 | 200 | ||||
Plant City Trust [Member] | Surety Bond [Member] | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Post Closure And Environmental Costs | $ 260 | |||||
Plant City and Bonnie Facilities | ||||||
ARO Loss Contingencies [Line Items] | ||||||
Asset retirement obligations | $ 95.3 | $ 95.3 | $ 93.5 |
Contingencies (Details)
Contingencies (Details) $ in Millions | Aug. 31, 2016USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2017USD ($) |
Applicability, Impact and Conclusion of Environmental Loss Contingencies [Abstract] | ||||
Environmental contingency accrual | $ 39.7 | $ 79.6 | ||
Loss Contingencies [Line Items] | ||||
Amount deposited by Mosaic into the RCRA Trusts | $ 630 | |||
New Wales water loss incident | ||||
Loss Contingencies [Line Items] | ||||
Number Of Cells With Sinkholes | 1 | |||
Number Of Cells In The Active Stack | 2 | |||
Payment related to loss contingency liability | 57 | |||
Asset retirement obligations, undiscounted | 27 | |||
Accrual for Environmental Loss Contingencies, Revision in Estimates | 14 | |||
New Wales water loss incident | Sinkhole closure remediation plan | ||||
Loss Contingencies [Line Items] | ||||
Expense related to environmental remediation | $ 70 | |||
2015 Consent Decrees With EPA | ||||
Loss Contingencies [Line Items] | ||||
Amount deposited by Mosaic into the RCRA Trusts | 630 | |||
2015 Consent Decrees With EPA | Unfavorable Regulatory Action | ||||
Loss Contingencies [Line Items] | ||||
Payment related to loss contingency liability | $ 250 | |||
Future capital expenditures | 1 | 1.1 | ||
Asset retirement obligations, undiscounted | 1,400 | |||
Discounted asset retirement obligation | 414 | |||
Maximum | Brazilian Non Income Tax Proceedings | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential liabilitiy | 127 | |||
Maximum | Brazilian Non Income Tax Proceedings | PIS And Cofins Cases | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential liabilitiy | $ 96 | |||
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 | |||
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 | Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 |
Other Commitments [Line Items] | |||
Restricted cash | $ 33.2 | $ 31.3 | $ 58.2 |
Asset retirement obligations | 747.9 | 747.9 | |
Plant City Trust | |||
Other Commitments [Line Items] | |||
Assets Held-in-trust, Current | $ 200 | ||
Plant City and Bonnie Facilities | |||
Other Commitments [Line Items] | |||
Asset retirement obligations | $ 95.3 | $ 93.5 |
Derivative Instruments - Gross
Derivative Instruments - Gross Asset and Liability Positions (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gross asset position | $ 30.9 | $ 16.2 |
Gross liability position | $ 22.4 | $ 17.3 |
Derivative Notional Amounts (De
Derivative Notional Amounts (Details) MMBTU in Millions, $ in Millions | 9 Months Ended | |
Sep. 30, 2017USD ($)MMBTU | Dec. 31, 2016USD ($)MMBTU | |
Derivative [Line Items] | ||
Derivative, Loss on Derivative | $ 10 | |
Foreign Exchange Contract | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | 869.7 | $ 949.9 |
Interest Rate Swap | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | 585 | 310 |
Interest Rate Contract [Member] | ||
Notional Disclosures [Abstract] | ||
Derivative, notional amount | $ 800 | $ 100 |
Commodity Contract (MMbtu) | ||
Notional Disclosures [Abstract] | ||
Nonmonetary derivative notional amount | MMBTU | 48.5 | 21.7 |
Credit Risk Related Contingent
Credit Risk Related Contingent Features (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
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 | $ 14.9 | $ 6 |
Required collateral assets to be posted if the credit-risk contingent features of these underlying agreements were triggered | $ 13.7 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Gross asset position | $ 30.9 | $ 16.2 |
Gross liability position | $ 22.4 | 17.3 |
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 | $ 25.7 | 8.3 |
Gross liability position | 2.6 | 14.6 |
Fair Value, Measurements, Recurring [Member] | Commodity Contract | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Gross asset position | 1.4 | 6.3 |
Gross liability position | 9.2 | 1.3 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap | ||
Fair Value, Assets, Liabilities and Stockholders' Equity Measured on Recurring Basis [Abstract] | ||
Gross asset position | 3.8 | 1.6 |
Gross liability position | $ 10.6 | $ 1.4 |
Fair Value Financial Instrument
Fair Value Financial Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 685.7 | $ 673.1 |
Receivables, net | 592.3 | 627.8 |
Accounts payable | 547.9 | 471.8 |
Structured accounts payable arrangements | 370.4 | 128.8 |
Short-term debt | 58.6 | 0.1 |
Long-term debt, including current portion | 3,856.5 | 3,818.1 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 685.7 | 673.1 |
Receivables, net | 592.3 | 627.8 |
Accounts payable | 547.9 | 471.8 |
Structured accounts payable arrangements | 370.4 | 128.8 |
Short-term debt | 58.6 | 0.1 |
Long-term debt, including current portion | $ 3,999.1 | $ 3,854.8 |
Share Repurchases (Details)
Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 14 Months Ended | |||
Mar. 31, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 29, 2016 | May 14, 2015 | |
Share Repurchases [Line Items] | ||||||
Payments for repurchase of common stock | $ 0 | $ 75 | ||||
2015 Repurchase Program | ||||||
Share Repurchases [Line Items] | ||||||
Stock repurchase program, authorized amount | $ 1,500 | |||||
Stock repurchased and retired (shares) | 15,765,025 | |||||
Payments for repurchase of common stock | $ 650 | |||||
Stock repurchase program, remaining authorized repurchase amount | $ 850 | |||||
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, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |||||
Net amount owed to our non-consolidated companies | $ 95.4 | $ 95.4 | $ 21.7 | ||
Transactions with non-consolidated companies included in net sales | 211.7 | $ 179.4 | 543.3 | $ 467.8 | |
Transactions with non-consolidated companies included in cost of goods sold | $ 301.5 | $ 125.8 | $ 717.8 | $ 453.3 |
Proposed Acquisition of Vale 61
Proposed Acquisition of Vale Fertilizantes S.A. (Details) $ / shares in Units, $ in Millions | Dec. 31, 2017USD ($)$ / sharesshares | Dec. 31, 2019USD ($) | Sep. 30, 2017$ / shares | Dec. 31, 2016$ / shares |
Business Acquisition [Line Items] | ||||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | $ 0.01 | ||
Miski Mayo Mine | ||||
Business Acquisition [Line Items] | ||||
Ownership interest | 35.00% | |||
Vale Fertilizantes S.A. | Estimate | ||||
Business Acquisition [Line Items] | ||||
Business acquisition - payment for acquisition | $ | $ 1,250 | |||
Business acquisition - noncash consideration | shares | 42,286,874 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 | |||
Business Combination, Contingent Consideration, Period To Settle | 2 years | |||
Vale Fertilizantes S.A. | Estimate | Miski Mayo Mine | ||||
Business Acquisition [Line Items] | ||||
Ownership interest | 40.00% | |||
Vale Fertilizantes S.A. | Estimate | Maximum | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Contingent Consideration, Liability, Noncurrent | $ | $ 260 | |||
Business Acquisition, Addition To Board Of Directors | 2 |
Business Segments (Details)
Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net sales | $ 1,984.8 | $ 1,952.2 | $ 5,317.5 | $ 5,300.7 | |
Gross margin | 240.8 | 213.3 | 562.7 | 604.1 | |
Canadian resource taxes | (4.7) | 14.6 | 51.6 | 71 | |
Gross margin (excluding canadian resource taxes) | 236.1 | 227.9 | 614.3 | 675.1 | |
Operating earnings (loss) | 213.9 | 69.7 | 338.6 | 245.4 | |
Depreciation, depletion and amortization expense | 168.8 | 172.7 | 493.5 | 545.7 | |
Capital expenditures | 197.6 | 196.4 | 589.9 | 633.7 | |
Total assets | 17,803.1 | 17,803.1 | $ 16,840.7 | ||
Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,984.8 | 1,952.2 | 5,317.5 | 5,300.7 | |
Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0 | 0 | 0 | 0 | |
Phosphates Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 779 | 929.6 | 2,592.6 | 2,815 | |
Gross margin | 66.7 | 101.3 | 199.3 | 266.3 | |
Canadian resource taxes | 0 | 0 | 0 | 0 | |
Gross margin (excluding canadian resource taxes) | 66.7 | 101.3 | 199.3 | 266.3 | |
Operating earnings (loss) | 88.3 | 6.2 | 134.8 | 35.7 | |
Depreciation, depletion and amortization expense | 86.3 | 84.2 | 249.3 | 284.3 | |
Capital expenditures | 86.7 | 89.4 | 291.2 | 291.3 | |
Total assets | 7,403.3 | 7,403.3 | 7,679.7 | ||
Phosphates Segment | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 579.5 | 676.7 | 1,946.8 | 2,162.5 | |
Phosphates Segment | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 199.5 | 252.9 | 645.8 | 652.5 | |
Potash Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 474.1 | 428.1 | 1,356.4 | 1,279.2 | |
Gross margin | 98.6 | 39.8 | 277.9 | 190.9 | |
Canadian resource taxes | (4.7) | 14.6 | 51.6 | 71 | |
Gross margin (excluding canadian resource taxes) | 93.9 | 54.4 | 329.5 | 261.9 | |
Operating earnings (loss) | 76.9 | 6.8 | 198 | 110.9 | |
Depreciation, depletion and amortization expense | 72.7 | 76.6 | 213.8 | 231.7 | |
Capital expenditures | 102.3 | 98.6 | 269.1 | 309.7 | |
Total assets | 8,237.3 | 8,237.3 | 7,777.9 | ||
Potash Segment | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 469.9 | 422.4 | 1,346.6 | 1,267.8 | |
Potash Segment | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4.2 | 5.7 | 9.8 | 11.4 | |
International Distribution | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 930.8 | 848.5 | 2,001 | 1,849.2 | |
Gross margin | 63.6 | 70.6 | 130.8 | 87 | |
Canadian resource taxes | 0 | 0 | 0 | 0 | |
Gross margin (excluding canadian resource taxes) | 63.6 | 70.6 | 130.8 | 87 | |
Operating earnings (loss) | 45.6 | 50.3 | 78.3 | 34.9 | |
Depreciation, depletion and amortization expense | 4.3 | 4.1 | 12.9 | 11.4 | |
Capital expenditures | 3.9 | 4.8 | 17.3 | 16.7 | |
Total assets | 1,764.5 | 1,764.5 | 1,477.1 | ||
International Distribution | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 930.5 | 848.2 | 2,000.3 | 1,848.4 | |
International Distribution | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 0.3 | 0.3 | 0.7 | 0.8 | |
Corporate Eliminations And Other Segment | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | (199.1) | (254) | (632.5) | (642.7) | |
Gross margin | 11.9 | 1.6 | (45.3) | 59.9 | |
Canadian resource taxes | 0 | 0 | 0 | 0 | |
Gross margin (excluding canadian resource taxes) | 11.9 | 1.6 | (45.3) | 59.9 | |
Operating earnings (loss) | 3.1 | 6.4 | (72.5) | 63.9 | |
Depreciation, depletion and amortization expense | 5.5 | 7.8 | 17.5 | 18.3 | |
Capital expenditures | 4.7 | 3.6 | 12.3 | 16 | |
Total assets | 398 | 398 | $ (94) | ||
Corporate Eliminations And Other Segment | Operating Segments | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 4.9 | 4.9 | 23.8 | 22 | |
Corporate Eliminations And Other Segment | Intersegment Eliminations | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | $ (204) | $ (258.9) | $ (656.3) | $ (664.7) |
Guarantee (Details)
Guarantee (Details) $ in Millions | Sep. 30, 2017USD ($) | May 31, 2016USD ($) |
Guarantor Obligations [Line Items] | ||
Initial number of vessels to be constructed | 2 | |
Maximum | ||
Guarantor Obligations [Line Items] | ||
Amount of bridge loans Mosaic will provide to GMS | $ 235 | $ 185 |
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 | $ 223.7 | |
Additional loan outstanding owed by GMS to Gulf Sulphur Services | 53.7 | |
Guarantee obligations maximum exposure | $ 100 |
Subsequent Events (Details)
Subsequent Events (Details) $ / shares in Units, $ in Millions | Oct. 31, 2017$ / shares | Oct. 30, 2017 | Feb. 07, 2017$ / shares | Dec. 31, 2017USD ($)$ / shares | Sep. 30, 2017$ / shares | Dec. 31, 2016$ / shares | Oct. 24, 2017USD ($) |
Subsequent Event [Line Items] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.60 | ||||||
Dividends per share | $ 0.575 | $ 1.10 | |||||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.10 | ||||||
Estimate | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividends per share | $ 0.025 | ||||||
Estimate | Idle Plant City Florida Phosphate Site [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Severance Costs | $ | $ 20 | ||||||
Minimum | Idle Plant City Florida Phosphate Site [Member] | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Temporary Idle Facility, Number of years | 1 | ||||||
Savage Harvest ATB Lease Financing | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ammonia ATB Sale Leaseback Transaction, Amount | $ | $ 230 | ||||||
Savage Harvest ATB Lease Financing Balloon Payment | Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Ammonia ATB Lease Financing, Balloon Payment | $ | $ 132 |