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. Our chief operating decision maker is our chief executive officer. For a description of our business segments, see Note 1 of our Notes to Consolidated Financial Statements. The accounting policies of the segments are the same as those described in the summary of significant accounting policies. We evaluate performance based on the gross margin and 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 the results of the China and India distribution business are included within Corporate, Eliminations and Other. Certain selling, general and administrative costs that are not controllable by the business segments are included within Corporate, Eliminations and Other. For the Phosphates, Potash and Mosaic Fertilizantes segments, the chief operating decision maker uses both segment gross margin and operating earnings to allocate resources to each segment, predominantly in the annual budget and forecasting process. The chief operating decision maker considers forecast-to-actual variances on a monthly basis for both profit measures when making decisions about allocating capital and personnel to the segments. The chief operating decision maker also uses segment gross margin for evaluating product pricing and segment profit or loss from operations to assess the performance for each segment by comparing the results and return on assets of each segment with one another. Segment information for the years 2024, 2023 and 2022 is as follows: (in millions) Phosphates Potash Mosaic Fertilizantes Corporate, Eliminations and Other (a) Total Year Ended December 31, 2024 Net sales to external customers $ 3,793.3 $ 2,371.0 $ 4,422.3 $ 536.2 $ 11,122.8 Intersegment net sales 725.5 17.7 — (743.2) — Net sales 4,518.8 2,388.7 4,422.3 (207.0) 11,122.8 Cost of goods sold (b) 3,924.8 1,745.5 4,015.7 (75.1) 9,610.9 Gross margin 594.0 643.2 406.6 (131.9) 1,511.9 Canadian resource taxes — 232.2 — — 232.2 Gross margin (excluding Canadian resource taxes) 594.0 875.4 406.6 (131.9) 1,744.1 Selling, general and administrative (c) 45.3 31.1 134.7 285.8 496.9 Other operating expenses (d) 323.7 7.7 34.2 27.9 393.5 Operating earnings 225.1 604.5 237.6 (445.7) 621.5 Gain on sale of equity method investment 522.2 — — — 522.2 Capital expenditures 660.7 297.5 242.8 50.8 1,251.8 Depreciation, depletion and amortization expense 505.6 336.5 159.3 24.1 1,025.5 Equity in net earnings of nonconsolidated companies 70.9 — — 2.4 73.3 Year Ended December 31, 2023 Net sales to external customers $ 3,894.5 $ 3,203.1 $ 5,684.7 $ 913.8 $ 13,696.1 Intersegment net sales 829.8 30.5 — (860.3) — Net sales 4,724.3 3,233.6 5,684.7 53.5 13,696.1 Cost of goods sold (b) 4,022.2 2,018.6 5,473.1 (28.4) 11,485.5 Gross margin 702.1 1,215.0 211.6 81.9 2,210.6 Canadian resource taxes — 403.4 — — 403.4 Gross margin (excluding Canadian resource taxes) 702.1 1,618.4 211.6 81.9 2,614.0 Selling, general and administrative (c) 42.0 30.0 110.1 318.4 500.5 Other operating expenses (d) 284.3 33.5 27.0 27.2 372.0 Operating earnings 375.7 1,151.5 74.5 (263.6) 1,338.1 Capital expenditures 625.9 357.4 336.3 82.8 1,402.4 Depreciation, depletion and amortization expense 485.7 299.0 165.5 10.4 960.6 Equity in net earnings of nonconsolidated companies 56.4 — — 3.9 60.3 Year Ended December 31, 2022 Net sales to external customers $ 4,546.4 $ 5,122.8 $ 8,287.2 $ 1,168.8 $ 19,125.2 Intersegment net sales 1,637.8 85.7 — (1,723.5) — Net sales 6,184.2 5,208.5 8,287.2 (554.7) 19,125.2 Cost of goods sold (b) 4,425.2 2,365.5 7,241.6 (662.9) 13,369.4 Gross margin 1,759.0 2,843.0 1,045.6 108.2 5,755.8 Canadian resource taxes — 927.9 — — 927.9 Gross margin (excluding Canadian resource taxes) 1,759.0 3,770.9 1,045.6 108.2 6,683.7 Selling, general and administrative (c) 40.7 30.3 101.9 325.1 498.0 Other operating expenses (d) 371.1 45.1 33.3 23.0 472.5 Operating earnings 1,347.2 2,767.7 910.4 (240.0) 4,785.3 Capital expenditures 631.8 281.6 306.4 27.5 1,247.3 Depreciation, depletion and amortization expense 485.1 307.3 125.5 16.0 933.9 Equity in net earnings of nonconsolidated companies 192.4 — — 3.6 196.0 Total assets as of December 31, 2024 $ 12,806.2 $ 7,762.8 $ 4,266.9 $ (1,911.9) $ 22,924.0 Total assets as of December 31, 2023 10,295.9 8,971.9 5,256.3 (1,491.3) 23,032.8 Total assets as of December 31, 2022 9,570.5 9,582.2 5,562.7 (1,329.4) 23,386.0 ______________________________ (a) The “Corporate, Eliminations and Other” category includes the results of our ancillary distribution operations in India and China. For the years ended December 31, 2024, 2023 and 2022, distribution operations in India and China had revenues of $519.6 million, $898.9 million and $1.1 billion, respectively, and gross margins of $39.7 million, $(16.8) million and $130.9 million, respectively. These operations do not meet the quantitative thresholds for determining reportable segments. (b) The primary components of cost of goods sold are raw material purchases, including sulfur and ammonia, conversion costs and transportation costs. (c) Selling, general and administrative expenses include nonmanufacturing payroll expense and professional services expense. (d) Other operating expenses typically relate to five major categories: (1) AROs, (2) environmental and legal reserves, (3) idle facility costs, (4) insurance reimbursements, and (5) gain/loss on sale or disposal of fixed assets. Financial information relating to our operations by geographic area is as follows: Years Ended December 31, (in millions) 2024 2023 2022 Net sales (a) : Brazil $ 4,296.2 $ 5,480.9 $ 8,045.5 Canpotex (b) 884.3 1,275.7 2,961.6 China 536.9 556.1 648.2 Canada 520.1 411.6 966.0 Paraguay 178.5 222.8 227.1 Argentina 141.8 75.2 224.6 Japan 130.8 157.7 162.0 Colombia 118.7 103.2 125.9 India 72.8 350.8 512.5 Australia 57.9 69.0 101.6 Peru 49.2 77.5 70.2 Mexico 42.2 125.5 165.5 Honduras 25.7 30.0 31.2 Dominican Republic 14.7 16.7 34.1 Thailand 6.0 8.4 6.3 Other 76.3 55.9 100.8 Total international countries 7,152.1 9,017.0 14,383.1 United States 3,970.7 4,679.1 4,742.1 Consolidated $ 11,122.8 $ 13,696.1 $ 19,125.2 ______________________________ (a) Revenues are attributed to countries based on location of customer. (b) Canpotex sales to the ultimate third-party customers are made to customers in various countries. The countries with the largest portion of third-party customer sales are Brazil, China, India, and Indonesia. December 31, (in millions) 2024 2023 Long-lived assets: Canada $ 5,390.5 $ 4,876.1 Brazil 2,012.8 2,467.8 Other 545.8 1,521.3 Total international countries 7,949.1 8,865.2 United States 8,457.2 7,204.8 Consolidated $ 16,406.3 $ 16,070.0 Excluded from the table above as of December 31, 2024 and 2023, are goodwill of $1,061.1 million and $1,138.6 million and deferred income tax assets of $958.3 million and $1,079.2 million, respectively. Net sales by product type for the years 2024, 2023 and 2022 are as follows: Years Ended December 31, (in millions) 2024 2023 2022 Sales by product type: Phosphate Crop Nutrients $ 2,978.7 $ 3,277.5 $ 4,465.0 Potash Crop Nutrients 2,808.6 4,107.7 6,484.1 Crop Nutrient Blends 1,253.4 2,107.4 2,970.0 Performance Products (a) 2,264.2 2,453.3 3,025.8 Phosphate Rock 217.2 125.9 125.9 Other (b) 1,600.7 1,624.3 2,054.4 $ 11,122.8 $ 13,696.1 $ 19,125.2 ______________________________ (a) Includes sales of MicroEssentials ® , K-Mag ® and Aspire ® . (b) Includes sales of industrial potash, feed products, nitrogen and other products. |