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8-K - 8-K - 2016 Q2 EARNINGS RELEASE AND PERFORMANCE DATA - MOSAIC COa8-kq2x2016.htm
EX-99.1 - EXHIBIT 99.1 - 2016 Q1 EARNINGS RELEASE - MOSAIC COpressreleaseq22016-exhibit.htm


The Mosaic Company Exhibit 99.2
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings per share
 
$
0.54

 
$
0.97

 
$
0.80

 
$
1.08

 
$
0.45

 
$
0.44

 
$
0.73

 
$
(0.03
)
Diluted weighted average # of shares outstanding(a)
 
375.9

 
372.0

 
367.9

 
363.3

 
356.0

 
354.3

 
353.2

 
349.8

Notable items impact on earnings per share(b)
 
$
(0.02
)
 
$
0.10

 
$
0.10

 
$
0.03

 
$
(0.17
)
 
$
(0.16
)
 
$
0.59

 
$
(0.09
)
Total Net Sales
 
$
2,251

 
$
2,379

 
$
2,139

 
$
2,488

 
$
2,106

 
$
2,163

 
$
1,674

 
$
1,675

Gross Margin
 
$
415

 
$
579

 
$
419

 
$
608

 
$
335

 
$
356

 
$
237

 
$
154

As % of Sales
 
18
%
 
24
%
 
20
%
 
24
%
 
16
%
 
17
 %
 
14
 %
 
9
 %
SG&A
 
84

 
91

 
100

 
89

 
77

 
95

 
90

 
73

Consolidated Foreign Currency Gain/(Loss)
 
27

 
47

 
45

 
(16
)
 
(49
)
 
(41
)
 
88

 
15

Effective Tax Rate(c)
 
27
%
 
7
%
 
9
%
 
16
%
 
6
%
 
(10
)%
 
(13
)%
 
(136
)%
Net Income
 
$
202

 
$
361

 
$
295

 
$
391

 
$
160

 
$
155

 
$
257

 
$
(10
)
As % of Sales
 
9
%
 
15
%
 
14
%
 
16
%
 
8
%
 
7
 %
 
15
 %
 
(1
)%
Consolidated Adjusted EBITDA(d)
 
$
531

 
$
656

 
$
539

 
$
674

 
$
459

 
$
389

 
$
295

 
$
218

Short-term debt
 
$

 
$
14

 
$
10

 
$
27

 
$
18

 
$
26

 
$
42

 
$
54

Current maturities of long-term debt
 
41

 
41

 
41

 
57

 
42

 
42

 
42

 
42

Long-term debt, less current maturities
 
3,774

 
3,778

 
3,775

 
3,762

 
3,738

 
3,769

 
3,774

 
3,773

Cash & cash equivalents
 
2,971

 
2,375

 
2,517

 
2,210

 
1,285

 
1,276

 
1,058

 
1,059

Net
 
$
844

 
$
1,458

 
$
1,309

 
$
1,636

 
$
2,513

 
$
2,561

 
$
2,800

 
$
2,810

Cash flow from operations
 
$
376

 
$
347

 
$
729

 
$
603

 
$
173

 
$
302

 
$
266

 
$
583

Cash flow from investments
 
(158
)
 
(586
)
 
(183
)
 
(343
)
 
(823
)
 
(400
)
 
(274
)
 
(357
)
Cash flow from financing
 
436

 
(284
)
 
(300
)
 
(597
)
 
(115
)
 
120

 
(280
)
 
(242
)
Effect of exchange rate changes on cash
 
(50
)
 
(73
)
 
(103
)
 
30

 
(160
)
 
(31
)
 
69

 
18

Net cash flow
 
$
604

 
$
(596
)
 
$
143

 
$
(307
)
 
$
(925
)
 
$
(9
)
 
$
(219
)
 
$
2

Cash dividends paid
 
$
(94
)
 
$
(94
)
 
$
(91
)
 
$
(98
)
 
$
(98
)
 
$
(97
)
 
$
(96
)
 
$
(96
)
Operating Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potash
 
$
69

 
$
229

 
$
204

 
$
259

 
$
66

 
$
113

 
$
86

 
$
18

Phosphates
 
188

 
157

 
190

 
259

 
157

 
47

 
18

 
12

International Distribution
 
30

 
22

 
3

 
8

 
44

 
14

 
(4
)
 
(11
)
Corporate and Other(e)
 
(10
)
 
(43
)
 
(78
)
 
(16
)
 
(21
)
 
30

 
64

 
(7
)
Consolidated Operating Earnings
 
$
277

 
$
365

 
$
319

 
$
510

 
$
246

 
$
204

 
$
164

 
$
12

Segment data  (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phosphates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(f)
 
2,176

 
2,392

 
2,297

 
2,788

 
2,049

 
2,212

 
2,206

 
2,449

Realized average DAP price/tonne(g)
 
$
463

 
$
447

 
$
458

 
$
450

 
$
451

 
$
410

 
$
355

 
$
343

Revenue
 
$
1,133

 
$
1,212

 
$
1,172

 
$
1,385

 
$
1,032

 
$
1,031

 
$
909

 
$
976

Segment Gross Margin
 
$
236

 
$
231

 
$
222

 
$
296

 
$
199

 
$
121

 
$
65

 
$
100

As % of Sales
 
21
%
 
19
%
 
19
%
 
21
%
 
19
%
 
12
 %
 
7
 %
 
10
 %
Potash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(f)
 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

 
1,931

 
1,546

 
2,040

Realized average MOP price/tonne(g)
 
$
291

 
$
295

 
$
288

 
$
280

 
$
265

 
$
254

 
$
207

 
$
178

Revenue
 
$
593

 
$
763

 
$
653

 
$
730

 
$
492

 
$
572

 
$
394

 
$
457

Segment Gross Margin
 
$
154

 
$
327

 
$
242

 
$
295

 
$
97

 
$
155

 
$
98

 
$
53

As % of Sales
 
26
%
 
43
%
 
37
%
 
40
%
 
20
%
 
27
 %
 
25
 %
 
12
 %
Segment Gross Margin (excluding CRT)(h)
 
$
200

 
$
375

 
$
320

 
$
350

 
$
156

 
$
211

 
$
116

 
$
91

As % of Sales(h)
 
34
%
 
49
%
 
49
%
 
48
%
 
32
%
 
37
 %
 
30
 %
 
20
 %
International Distribution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
1,398

 
1,113

 
976

 
1,477

 
2,046

 
1,478

 
1,268

 
1,413

Realized average selling price/tonne(g)
 
$
481

 
$
427

 
$
444

 
$
427

 
$
400

 
$
407

 
$
365

 
$
374

Revenue
 
$
684

 
$
516

 
$
439

 
$
637

 
$
825

 
$
605

 
$
467

 
$
534

Segment Gross Margin
 
$
51

 
$
41

 
$
21

 
$
29

 
$
61

 
$
38

 
$
12

 
$
5

As % of Sales
 
7
%
 
8
%
 
5
%
 
4
%
 
7
%
 
6
 %
 
3
 %
 
1
 %





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
371

 
$
467

 
$
351

 
$
372

 
$
250

 
$
364

 
$
242

 
$
304

International
 
222

 
296

 
302

 
358

 
242

 
208

 
152

 
153

Net Sales
 
$
593

 
$
763

 
$
653

 
$
730

 
$
492

 
$
572

 
$
394

 
$
457

Cost of Goods Sold
 
439

 
436

 
411

 
435

 
395

 
417

 
296

 
404

Gross Margin
 
$
154

 
$
327

 
$
242

 
$
295

 
$
97

 
$
155

 
$
98

 
$
53

As % of Sales
 
26
%
 
43
%
 
37
%
 
40
%
 
20
%
 
27
%
 
25
%
 
12
%
Canadian resource taxes
 
46

 
48

 
78

 
55

 
59

 
56

 
18

 
38

Gross Margin (excluding CRT)(h)
 
$
200

 
$
375

 
$
320

 
$
350

 
$
156

 
$
211

 
$
116

 
$
91

As % of Sales(h)
 
34
%
 
49
%
 
49
%
 
48
%
 
32
%
 
37
%
 
30
%
 
20
%
Freight included in revenue & cost of goods sold (in millions)(i)
 
$
51

 
$
69

 
$
47

 
$
47

 
$
34

 
$
56

 
$
46

 
$
69

Net sales less freight
 
$
542

 
$
694

 
$
606

 
$
683

 
$
458

 
$
516

 
$
348

 
$
388

Cost of Goods Sold less freight
 
$
388

 
$
367

 
$
364

 
$
388

 
$
361

 
$
361

 
$
250

 
$
335

Segment Operating Earnings
 
$
69

 
$
229

 
$
204

 
$
259

 
$
66

 
$
113

 
$
86

 
$
18

Depreciation, Depletion and Amortization
 
89

 
87

 
79

 
82

 
75

 
75

 
75

 
79

Write-Down (Up) of Long-Lived Assets
 
59

 
57

 

 

 

 

 

 

Adjusted EBITDA(j)
 
$
217

 
$
373

 
$
283

 
$
341

 
$
141

 
$
188

 
$
161

 
$
97

Cost of Goods Sold Detail (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COGS additional detail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Canadian resource taxes
 
$
46

 
$
48

 
$
78

 
$
55

 
$
59

 
$
56

 
$
18

 
$
38

Royalties
 
6

 
8

 
11

 
9

 
7

 
6

 
6

 
5

Brine Inflow Expenses
 
44

 
47

 
44

 
45

 
37

 
39

 
37

 
42

Depreciation, Depletion and Amortization
 
89

 
87

 
79

 
82

 
75

 
75

 
75

 
79

Total
 
$
185

 
$
190

 
$
212

 
$
191

 
$
178

 
$
176

 
$
136

 
$
164

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crop Nutrients North America(f)
 
696

 
912

 
572

 
641

 
419

 
794

 
650

 
983

Crop Nutrients International(f)
 
919

 
1,228

 
1,248

 
1,544

 
1,041

 
991

 
749

 
905

Non-Agricultural
 
193

 
169

 
207

 
157

 
166

 
146

 
147

 
152

Total(f)
 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

 
1,931

 
1,546

 
2,040

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production Volume
 
1,666

 
2,584

 
2,451

 
2,362

 
1,749

 
1,850

 
2,018

 
1,769

Operating Rate(k)
 
62
%
 
91
%
 
93
%
 
90
%
 
67
%
 
70
%
 
77
%
 
67
%
Realized prices (FOB plant, $/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MOP - North America crop nutrients(g)(l)
 
$
344

 
$
355

 
$
362

 
$
345

 
$
293

 
$
264

 
$
184

 
$
173

MOP - International(g)
 
$
232

 
$
239

 
$
245

 
$
244

 
$
236

 
$
227

 
$
195

 
$
158

MOP - Average(g)(m)
 
$
291

 
$
295

 
$
288

 
$
280

 
$
265

 
$
254

 
$
207

 
$
178

Brine inflow cost/production tonne
 
$
26

 
$
18

 
$
18

 
$
19

 
$
21

 
$
21

 
$
18

 
$
24

Cash COGS/sales tonne
 
$
137

 
$
97

 
$
97

 
$
103

 
$
135

 
$
116

 
$
98

 
$
104

Operating earnings/sales tonne(n)
 
$
38

 
$
99

 
$
101

 
$
111

 
$
41

 
$
59

 
$
56

 
$
9

Adjusted EBITDA(j)/sales tonne(n)
 
$
87

 
$
137

 
$
140

 
$
146

 
$
87

 
$
97

 
$
104

 
$
48

Potash CAPEX  (in millions)
 
$
92

 
$
141

 
$
95

 
$
88

 
$
119

 
$
130

 
$
113

 
$
98







The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
636

 
$
714

 
$
683

 
$
705

 
$
570

 
$
809

 
$
597

 
$
476

International
 
497

 
498

 
489

 
680

 
462

 
222

 
312

 
500

Net Sales
 
$
1,133

 
$
1,212

 
$
1,172

 
$
1,385

 
$
1,032

 
$
1,031

 
$
909

 
$
976

Cost of Goods Sold
 
897

 
981

 
950

 
1,089

 
833

 
910

 
844

 
876

Gross Margin
 
$
236

 
$
231

 
$
222

 
$
296

 
$
199

 
$
121

 
$
65

 
$
100

As % of Sales
 
21
%
 
19
%
 
19
%
 
21
%
 
19
%
 
12
%
 
7
%
 
10
%
Freight included in revenue & cost of goods sold (in millions)
 
$
88

 
$
103

 
$
82

 
$
98

 
$
79

 
$
84

 
$
82

 
$
87

Net sales less freight
 
$
1,045

 
$
1,109

 
$
1,090

 
$
1,287

 
$
953

 
$
947

 
$
827

 
$
889

Cost of Goods Sold less freight
 
$
809

 
$
878

 
$
868

 
$
991

 
$
754

 
$
826

 
$
762

 
$
789

Segment Operating Earnings
 
$
188

 
$
157

 
$
190

 
$
259

 
$
157

 
$
47

 
$
18

 
$
12

Depreciation, Depletion and Amortization
 
91

 
97

 
94

 
99

 
96

 
101

 
99

 
101

Write-Down (Up) of Long-Lived Assets
 

 

 

 

 
10

 

 

 
47

Adjusted EBITDA(j)
 
$
279

 
$
254

 
$
284

 
$
358

 
$
263

 
$
148

 
$
117

 
$
160

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America - DAP/MAP
 
805

 
837

 
951

 
895

 
709

 
1,049

 
951

 
738

International - DAP/MAP(f)
 
878

 
882

 
754

 
1,224

 
819

 
595

 
656

 
1,022

MicroEssentials®(f)
 
357

 
502

 
440

 
516

 
389

 
437

 
468

 
567

Feed and Other
 
136

 
171

 
152

 
153

 
132

 
131

 
131

 
122

Total
 
2,176

 
2,392

 
2,297

 
2,788

 
2,049

 
2,212

 
2,206

 
2,449

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total tonnes produced(o)
 
2,480

 
2,364

 
2,299

 
2,504

 
2,434

 
2,226

 
2,205

 
2,391

Operating Rate
 
85
%
 
81
%
 
79
%
 
86
%
 
83
%
 
76
%
 
75
%
 
82
%
Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP (FOB plant)(g)
 
$
463

 
$
447

 
$
458

 
$
450

 
$
451

 
$
410

 
$
355

 
$
343

Realized costs  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(p)
 
$
508

 
$
544

 
$
519

 
$
417

 
$
418

 
$
404

 
$
370

 
$
320

Sulfur (long ton)(q)
 
$
148

 
$
154

 
$
145

 
$
161

 
$
151

 
$
146

 
$
130

 
$
112

Blended rock
 
$
60

 
$
58

 
$
61

 
$
61

 
$
61

 
$
60

 
$
60

 
$
65

Average Market prices  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(r)
 
$
547

 
$
625

 
$
497

 
$
462

 
$
454

 
$
412

 
$
322

 
$
311

Sulfur (long ton)(s)
 
$
135

 
$
131

 
$
141

 
$
135

 
$
136

 
$
115

 
$
98

 
$
73

Natural Gas(t)
 
$
4.0

 
$
3.9

 
$
2.8

 
$
2.7

 
$
2.7

 
$
2.2

 
$
2.0

 
$
2.2

Full production conversion cost/production tonne
 
$
82

 
$
90

 
$
91

 
$
83

 
$
89

 
$
100

 
$
90

 
$
85

Operating earnings/sales tonne(n)
 
$
86

 
$
66

 
$
83

 
$
93

 
$
77

 
$
21

 
$
8

 
$
5

Adjusted EBITDA(j)/sales tonne(n)
 
$
126

 
$
109

 
$
123

 
$
128

 
$
123

 
$
67

 
$
54

 
$
65

Phosphates CAPEX (in millions)
 
$
85

 
$
98

 
$
129

 
$
128

 
$
118

 
$
153

 
$
112

 
$
90







The Mosaic Company - International Distribution Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
684

 
$
516

 
$
439

 
$
637

 
$
825

 
$
605

 
$
467

 
$
534

Cost of Goods Sold
 
633

 
475

 
418

 
608

 
764

 
567

 
455

 
529

Gross Margin
 
$
51

 
$
41

 
$
21

 
$
29

 
$
61

 
$
38

 
$
12

 
$
5

As % of Sales
 
7
%
 
8
%
 
5
%
 
4
%
 
7
%
 
6
%
 
3
%
 
1
%
Per tonne
 
$
36

 
$
37

 
$
21

 
$
19

 
$
30

 
$
26

 
$
9

 
$
3

SG&A and Other Operating Expenses
 
$
21

 
$
19

 
$
18

 
$
21

 
$
17

 
$
24

 
$
16

 
$
16

Segment Operating Earnings
 
$
30

 
$
22

 
$
3

 
$
8

 
$
44

 
$
14

 
$
(4
)
 
$
(11
)
Depreciation, Depletion and Amortization
 
2

 
2

 
3

 
5

 
3

 
3

 
4

 
4

Write-Down (Up ) of Long-Lived Assets
 
(18
)
 
10

 

 

 

 

 

 

Adjusted EBITDA(j)
 
$
14

 
$
34

 
$
6

 
$
13

 
$
47

 
$
17

 
$

 
$
(7
)
Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
1,398

 
1,113

 
976

 
1,477

 
2,046

 
1,478

 
1,268

 
1,413

Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average selling price (FOB destination)(u)
 
$
481

 
$
456

 
$
444

 
$
427

 
$
400

 
$
407

 
$
365

 
$
374

Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
 
331

 
214

 
138

 
363

 
349

 
137

 
167

 
505

MicroEssentials® from Mosaic
 
83

 
56

 
125

 
198

 
155

 
11

 
101

 
303

Potash from Mosaic/Canpotex
 
261

 
334

 
249

 
769

 
556

 
464

 
360

 
822

International Distribution CAPEX (in millions)
 
$
7

 
$
9

 
$
4

 
$
6

 
$
4

 
$
9

 
$
5

 
$
7

Working Capital (in millions)(v)
 
$
184

 
$
186

 
$
145

 
$
149

 
$
105

 
$
109

 
$
84

 
$
28

Operating earnings/sales tonne(n)
 
$
21

 
$
20

 
$
3

 
$
5

 
$
22

 
$
9

 
$
(3
)
 
$
(8
)
Adjusted EBITDA(j)/sales tonne(n)
 
$
23

 
$
22

 
$
6

 
$
9

 
$
23

 
$
12

 
$

 
$
(5
)






The Mosaic Company - Corporate and Other Segment
Selected Calendar Quarter Financial Information
(Unaudited)

 
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
(159
)
 
$
(112
)
 
$
(125
)
 
$
(265
)
 
$
(243
)
 
$
(45
)
 
$
(96
)
 
$
(292
)
Cost of Goods Sold
 
(133
)
 
(92
)
 
(60
)
 
(253
)
 
(222
)
 
(87
)
 
(158
)
 
(288
)
Gross Margin (loss)
 
$
(26
)
 
$
(20
)
 
$
(65
)
 
$
(12
)
 
$
(21
)
 
$
42

 
$
62

 
$
(4
)
Elimination of profit in inventory income (loss) included in COGS
 
$
3

 
$
18

 
$
(18
)
 
$
(34
)
 
$
12

 
$
50

 
$
18

 
$
(25
)
Unrealized gain (loss) on derivatives included in COGS
 
$
(23
)
 
$
(31
)
 
$
(38
)
 
$
27

 
$
(22
)
 
$
1

 
$
53

 
$
30

Segment Operating Earnings (Loss)
 
$
(10
)
 
$
(43
)
 
$
(78
)
 
$
(16
)
 
$
(21
)
 
$
30

 
$
64

 
$
(7
)
Plus: Depreciation, Depletion and Amortization
 
8

 
7

 
6

 
5

 
7

 
7

 
6

 
5

Less: Unrealized gain (loss) on derivatives included in COGS
 
(23
)
 
(31
)
 
(38
)
 
27

 
(22
)
 
1

 
53

 
30

Adjusted EBITDA(j)
 
$
21

 
$
(5
)
 
$
(34
)
 
$
(38
)
 
$
8

 
$
36

 
$
17

 
$
(32
)






The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Notable Items
Q2 2016
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
15

 
$
(1
)
 
$
0.04

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
30

 
(3
)
 
0.08

Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
(5
)
 
(0.01
)
Restructuring
Consolidated
Other operating income (expense)
 
(11
)
 
1

 
(0.03
)
Prince Rupert write-off
Potash
Equity earnings
 
(24
)
 
8

 
(0.05
)
Asset write-off
Phosphates
Other operating income (expense)
 
(47
)
 
4

 
(0.12
)
Total Notable Items
 
 
 
$
(37
)
 
$
4

 
$
(0.09
)

Note: The tax effect is calculated based on our estimated annual effective rate. Our tax rate is impacted by the mix of earnings in the jurisdictions in which we operate and a benefit associated with depletion. The tax effect of the Prince Rupert write-off includes an income tax component of 20.6% which is calculated based on the rate specific to those earnings, and an impact related to Canadian Resource Tax of 12.4%.
Q1 2016
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
88

 
$
(14
)
 
$
0.21

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
53

 
(8
)
 
0.13

Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
64

 
0.18

Carlsbad insurance proceeds
Potash
Other operating income (expense)
 
28

 
(4
)
 
0.07

Total Notable Items
 
 
 
$
169

 
$
38

 
$
0.59







Q4 2015
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(41
)
 
$
5

 
$
(0.10
)
Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
1

 

 

Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
6

 
0.02

ARO year-end adjustment
Potash
Other operating income (expense)
 
(6
)
 
1

 
(0.02
)
ARO year-end adjustment
Phosphates
Other operating income (expense)
 
(26
)
 
3

 
(0.06
)
Total Notable Items
 
 
 
$
(72
)
 
$
15

 
$
(0.16
)

Q3 2015
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(49
)
 
$
8

 
$
(0.12
)
Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(22
)
 
4

 
(0.05
)
Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
3

 
0.01

Write-off of fixed assets
Phosphates
Other operating income (expense)
 
(10
)
 
2

 
(0.02
)
Consumption tax refund
Potash
Cost of goods sold
 
6

 
(1
)
 
0.01

Total Notable Items
 
 
 
$
(75
)
 
$
16

 
$
(0.17
)

Q2 2015
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
(16
)
 
$
3

 
$
(0.04
)
Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
27

 
(5
)
 
0.06

Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
10

 
0.03

Write down of equity investment
Corporate & Other
Other non-operating income (expense)
 
(8
)
 

 
(0.02
)
Total Notable Items
 
 
 
$
3

 
$
8

 
$
0.03


Note: For the loss on the write-down of an equity investment we recorded a full valuation allowance and therefore, there was no tax impact.





Q1 2015
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
45

 
$
(8
)
 
$
0.09

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(38
)
 
7

 
(0.08
)
Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
28

 
0.08

Sales tax refund
Phosphates
Other operating income (expense)
 
8

 
(1
)
 
0.02

Remediation of a pre-combination environmental matter
Phosphates
Other income (expense)
 
(6
)
 
1

 
(0.01
)
Total Notable Items
 
 
 
$
9

 
$
27

 
$
0.10


Q4 2014
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
48

 
$
(14
)
 
$
0.09

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(30
)
 
9

 
(0.06
)
Discrete tax items
Consolidated
Provision for (benefit from) income taxes
 
 
 
76

 
0.20

Adjustment to assets held for sale
International Distribution
Other operating income (expense)
 
(10
)
 
3

 
(0.02
)
Loss on write-down of Carlsbad
Potash
Carlsbad restructuring expense
 
(59
)
 
24

 
(0.09
)
Insurance proceeds
Potash
Other operating income (expense)
 
10

 
(3
)
 
0.02

ARO year-end adjustment
Phosphates
Other operating income (expense)
 
(22
)
 
6

 
(0.04
)
Total Notable Items
 
 
 
$
(63
)
 
$
101

 
$
0.10


Note: The Carlsbad restructuring expense is considered a discrete item (defined as significant unusual or extraordinary) because it is recorded as a separate line item on financial statements which resulted in a tax rate of 41.4% for this item.





Q3 2014
Description
Segment
Line Item
 
Amount (in millions)
 
Tax Effect(w) (in millions)
 
EPS Impact (per share)
 
 
 
 
 
 
 
 
 
Foreign currency transaction gain (loss)
Consolidated
Foreign currency transaction gain (loss)
 
$
27

 
$
(8
)
 
$
0.06

Unrealized gain (loss) on derivatives
Corporate & Other
Cost of goods sold
 
(23
)
 
6

 
(0.04
)
Share repurchase
Consolidated
Gain (loss) in value of share repurchase agreement
 
5

 

 
0.01

Severance
Corporate & Other
Other operating income (expense)
 
(3
)
 
1

 
(0.01
)
Adjustments to Argentine assets held for sale
International Distribution
Other operating income (expense)
 
18

 
(5
)
 
0.03

Gain on sale of Hersey
Potash
Other operating income (expense)
 
14

 
(4
)
 
0.03

Carlsbad restructuring expense
Potash
Carlsbad restructuring expense
 
(67
)
 
28

 
(0.10
)
Total Notable Items
 
 
 
$
(29
)
 
$
18

 
$
(0.02
)

Note: The gain (loss) in value of share repurchase agreement is not recognized for tax purposes therefore, there is no tax impact. The Carlsbad restructuring expense considered discrete item (defined as significant unusual or extraordinary) because it is recorded as a separate line item on financial statements which resulted in a tax rate of 41.3% for this item.





Footnotes
 
(a)
For Q3 2014 and Q4 2014, diluted weighted average number of shares reflects the impact of shares subject to the forward contract for our contractual share repurchase obligations.
(b)
Notable items impact on Earnings Per Share is calculated as notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares.
(c)
Includes a discrete income tax benefit of approximately $29 million in Q3 2014, $100 million in Q4 2014, $28 million in Q1 2015, $10 million in Q2 2015, $3 million in Q3 2015, $6 million in Q4 2015, and $64 million in Q1 2016 and a discrete income tax expense of approximately $5 million in Q2 2016.
(d)
The Company defines Consolidated Adjusted EBITDA, a Non-GAAP measure, as Consolidated Net Income excluding the effects of non-operational items, as further described in "Non-GAAP Reconciliations".
(e)
Includes elimination of intersegment sales.
(f)
Sales volumes include intersegment sales.
(g)
FOB Plant, sales to unrelated parties.
(h)
Gross margin (excluding CRT) is calculated as GAAP gross margin less Canadian resource taxes (CRT), and Gross margin (excluding CRT) As % of Sales is calculated as GAAP gross margin less CRT as a percentage of sales. Gross margin (excluding CRT) is a non-GAAP financial measure and Gross margin (excluding CRT) As % of Sales is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliations."
(i)
Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales.
(j)
The Company defines segment Adjusted EBITDA as the related segment's operating earnings plus depreciation, depletion and amortization plus write-off (up) of long-lived assets less unrealized mark-to-market gain (loss) on derivatives. Segment Adjusted EBITDA/sales tonne is calculated as the related segment's Adjusted EBITDA per sales tonne. Adjusted EBITDA presented on a segment basis is a Non-GAAP financial measure and segment EBITDA/sales tonne is calculated based on a non-GAAP financial measure. See "Non-GAAP Reconciliation."
(k)
Q4 2014 operating rate includes an additional 600 thousand metric tonnes of annual capacity from our Colonsay expansion.
(l)
This price excludes industrial and feed sales.
(m)
This price includes industrial and feed sales.
(n)
Segment Operating Earnings/sales tonne is calculated for each segment as that segment’s Operating Earnings divided by sales tonnes.  Segment Adjusted EBITDA/sales tonne is calculated for each segment as that segment’s Adjusted EBITDA divided by sales tonnes.
(o)
Includes crop nutrient dry concentrates and animal feed ingredients.
(p)
Amounts are representative of our average ammonia costs in cost of goods sold.
(q)
Amounts are representative of our average sulfur cost in cost of goods sold.
(r)
Three point quarterly average (Fertecon).
(s)
Three point quarterly average (Green Markets).
(t)
Three point quarterly average (NYMEX).
(u)
Average price of all products sold by International Distribution.
(v)
Calculated as current assets less current liabilities for the International Distribution segment.
(w)
Tax impact is based on our expected annual effective tax rate.

Note: MOP production costs are reflective of actual costs during the period. These costs are captured in inventory and are not necessarily reflective of costs included in costs of goods sold for the period.





The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Non-GAAP Reconciliation
The information in this Selected Calendar Quarter Financial Information includes non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including Consolidated Adjusted EBITDA, segment Adjusted EBITDA, segment Adjusted EBITDA/sales tonne, Potash Gross Margin (excluding CRT), Potash Gross Margin (excluding CRT) As % of Sales and Potash Cash COGS/sales tonne. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Each of the non-GAAP financial measures we present is determined as described below.
The non-GAAP financial measures we present should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because these non-GAAP measures, as presented, are not determined in accordance with GAAP, they are thus susceptible to varying interpretations and calculations and may not be comparable to other similarly titled measures of other companies.
Consolidated Adjusted EBITDA
Consolidated Adjusted EBITDA is defined as consolidated net income before foreign currency transaction gain/loss, net interest expense, unrealized mark-to-market gain/loss on derivatives, gain in the value of share repurchase agreements, equity earnings (loss) in non-consolidated companies, other income/expense, depreciation, depletion and amortization, write-off/(up) of long-lived assets and provision for/(benefit) from income taxes. Adjusted EBITDA is a non-GAAP financial measure that we provide to assist securities analysts, investors, lenders and others in their comparisons of operational performance, valuation and debt capacity across companies with differing capital, tax and legal structures. Consolidated Adjusted EBITDA should not be considered as an alternative to, or more meaningful than, consolidated net income as a measure of operating performance. A reconciliation of Consolidated Net Income to Consolidated Adjusted EBITDA is included below.
(in millions)
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Consolidated Net Income
 
$
202

 
$
361

 
$
295

 
$
391

 
$
160

 
$
155

 
$
257

 
$
(10
)
Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Foreign Currency Gain (Loss)
 
27

 
47

 
45

 
(16
)
 
(49
)
 
(41
)
 
88

 
15

Consolidated Interest Expense, Net
 
(25
)
 
(31
)
 
(31
)
 
(24
)
 
(24
)
 
(19
)
 
(26
)
 
(33
)
Consolidated Unrealized Mark-to-Market Gain (Loss) on Derivatives
 
(23
)
 
(31
)
 
(38
)
 
27

 
(22
)
 
1

 
53

 
30

Consolidated Gain in Value of Share Repurchase Agreement
 
5

 

 

 

 

 

 

 

Consolidated Equity Earnings (Loss)
 
(4
)
 
7

 
(1
)
 
1

 
(1
)
 
(1
)
 
3

 
(14
)
Consolidated Other Income (Expense)
 

 

 
(6
)
 
1

 
(2
)
 
(2
)
 
(1
)
 

Plus:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Consolidated Depreciation, Depletion & Amortization
 
190

 
193

 
182

 
191

 
181

 
186

 
184

 
189

Consolidated Write-Off (Up) of Long-Lived Assets
 
41

 
67

 

 
8

 
10

 

 

 
47

Consolidated Provision for (Benefit from) Income Taxes
 
78

 
27

 
31

 
73

 
10

 
(14
)
 
(29
)
 
(10
)
Consolidated Adjusted EBITDA(d)
 
$
531

 
$
656

 
$
539

 
$
674

 
$
459

 
$
389

 
$
295

 
$
218


Segment Adjusted EBITDA and Segment Adjusted EBITDA/sales tonne
Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings plus depreciation, depletion and amortization plus write-off (up) of long-lived assets less unrealized mark-to-market gain (loss) on derivatives. Segment EBITDA/sales tonne is calculated as the related segment's Adjusted EBITDA per sales tonne. We provide these non-GAAP financial measures because we believe they are relevant and useful to securities analysts, investors and others because they are part of our internal management reporting and planning process, and our management uses these measures to evaluate the operational performance and valuation of our segments. Management also uses these measures as a method of comparing segment, performance with that of its competitors. Segment Adjusted EBITDA and segment Adjusted EBITDA/sales tonne





should not be considered as alternatives to, or more meaningful than, segment Operating Earnings and segment Operating Earnings/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings and segment Operating Earnings/sales tonne, respectively, are the most directly comparable GAAP measures because we do not allocate taxes on a segment basis. Reconciliations of segment Adjusted EBITDA and segment Adjusted EBITDA/sales tonne to segment Operating Earnings and segment Operating Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.
Potash Cash COGS/sales tonne
For the Potash segment, Cash COGS/sales tonne is defined as cost of goods sold per sales tonne less depreciation, depletion, amortization, Canadian royalties and resource taxes and freight included in revenue and cost of goods sold.  Cash COGS/sales tonne is provided to assist securities analysts, lenders and others in their comparisons of operational performance but should not be considered as an alternative to, or more meaningful than, Potash Cost of Goods Sold as a measure of operating performance.  A reconciliation of Cash COGS/sales tonne to Potash Cost of Goods Sold is included below.
(in millions, except sales tonnes)
 
Q3 2014
 
Q4 2014
 
Q1 2015
 
Q2 2015
 
Q3 2015
 
Q4 2015
 
Q1 2016
 
Q2 2016
Potash Cost of Goods Sold
 
$
439

 
$
436

 
$
411

 
$
435

 
$
395

 
$
417

 
$
296

 
$
404

Less:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Freight included in revenue & cost of goods sold(i)
 
51

 
69

 
47

 
47

 
34

 
56

 
46

 
69

Canadian resource taxes
 
46

 
48

 
78

 
55

 
59

 
56

 
18

 
38

Royalties
 
6

 
8

 
11

 
9

 
7

 
6

 
6

 
5

Potash Depreciation, Depletion & Amortization
 
89

 
87

 
79

 
82

 
75

 
75

 
75

 
79

Cash Cost of Goods Sold
 
$
247

 
$
224

 
$
196

 
$
242

 
$
220

 
$
224

 
$
151

 
$
213

Sales tonnes (in thousands of mt)
 
1,808

 
2,309

 
2,027

 
2,342

 
1,626

 
1,931

 
1,546

 
2,040

Cash COGS/sales tonne
 
$
137

 
$
97

 
$
97

 
$
103

 
$
135

 
$
116

 
$
98

 
$
104


Potash Gross Margin (excluding CRT) and Gross Margin (excluding CRT) as % of Sales
For the Potash segment, Segment Gross Margin (excluding CRT) is calculated as GAAP Segment Gross Margin less Canadian resource taxes (CRT), and Segment Gross Margin (excluding CRT) As % of Sales is calculated as GAAP Segment Gross Margin less CRT as a percentage of Sales. Segment Gross Margin (excluding CRT) and Segment Gross Margin (excluding CRT) As % of Sales provide measures that we believe enhance the reader’s ability to compare our Gross Margin with that of other peer companies that incur CRT expense and classify it in a manner differently than we do in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, our management believes that our presentation of Gross Margin (excluding CRT) and Gross Margin (excluding CRT) As % of Sales for Potash affords them greater transparency in assessing our financial performance for this segment against competitors. When measuring the performance of our Potash business, our management regularly utilizes gross margin before CRT. Reconciliations of Potash Segment Gross Margin (excluding CRT) to Segment Gross Margin and Segment Gross Margin (excluding CRT) As % of Sales to Gross Margin As % of Sales are included in the Company’s earnings news release dated August 2, 2016.