Form8-K-SegmentReportingMarch2015
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
  
 
 
FORM 8-K
 
 

 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): March 13, 2015
  
 
 
THE MOSAIC COMPANY
(Exact name of registrant as specified in its charter)
 
 
 
 
 
 
 
 
Delaware
 
001-32327
 
20-1026454
(State or other jurisdiction
of incorporation)
 
(Commission File Number)
 
(IRS Employer
Identification No.)
 
 
 
 
3033 Campus Drive
Suite E490
Plymouth, Minnesota
 
55441
(Address of principal executive offices)
 
(Zip Code)
 
Registrant’s telephone number, including area code: (800) 918-8270
 
Not applicable
(Former Name or Former Address, if Changed Since Last Report)
 
 
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
 
 



Item 2.02. Results of Operations and Financial Condition.

The following information is being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed to be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act, except as expressly set forth by specific reference in such filing:

MOSAIC SEGMENT REALIGNMENT

This report should be read in conjunction with The Mosaic Company’s annual report on Form 10-K for the fiscal year ended December 31, 2014, including the Management’s Discussion and Analysis of Results of Operations and Financial Condition and the consolidated financial statements and accompanying notes.
On March 13, 2015, The Mosaic Company (“Mosaic”, and individually or in any combination with its consolidated subsidiaries, “we”, “us”, “our”, or the “Company”) announced that it was realigning its business segments (the “Realignment”) to more clearly reflect the Company’s evolving business model. Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of Mosaic’s announcement regarding the Realignment. 
Our business 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 readily available for our chief operating decision maker. As part of the Realignment, our international distribution activities, which had previously been reported in our Phosphates business segment, are being moved into a separate International Distribution segment, as this is how our chief operating decision maker began viewing and evaluating our operations during the first quarter. The Corporate and Other segment will now include inter-segment eliminations, mark-to-market gains/losses on derivatives that had previously been reported in our Phosphates and Potash business segments, debt expenses, and our legacy Argentina and Chile results.
The tables below provide certain performance data for our reportable segments for each of the eight quarters through the quarter ended December 31, 2014, adjusted to reflect the Realignment.  The recasting of previously issued financial information does not represent a restatement of previously issued financial statements. The information contained in this Form 8-K is being furnished in order to provide the financial community with historical financial data that is presented on a basis consistent with the Company’s new reporting structure. Beginning with the quarter ending March 31, 2015, the Company’s financial statements will reflect the new reporting structure with prior periods adjusted accordingly.




The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Consolidated data (in millions, except per share)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted net earnings per share(a)
 
$
0.89

 
$
1.01

 
$
0.29

 
$
0.30

 
$
0.54

 
$
0.64

 
$
0.54

 
$
0.97

Diluted weighted average # of shares outstanding(b)
 
427.2

 
427.2

 
427.1

 
415.5

 
379.6

 
376.2

 
375.9

 
372.0

Total Net Sales
 
$
2,312

 
$
2,619

 
$
1,909

 
$
2,182

 
$
1,986

 
$
2,440

 
$
2,251

 
$
2,379

Gross Margin
 
$
642

 
$
665

 
$
387

 
$
322

 
$
412

 
$
521

 
$
415

 
$
579

As % of Sales
 
28
%
 
25
%
 
20
 %
 
15
%
 
21
 %
 
21
%
 
18
%
 
24
%
SG&A
 
92

 
116

 
94

 
91

 
120

 
88

 
84

 
91

Consolidated Foreign Currency Gain/(Loss)
 
17

 
22

 
(30
)
 
25

 
43

 
(39
)
 
27

 
47

Effective Tax Rate(c)
 
26
%
 
23
%
 
(6
)%
 
51
%
 
(1
)%
 
25
%
 
27
%
 
7
%
Net Income
 
$
380

 
$
430

 
$
124

 
$
129

 
$
218

 
$
248

 
$
202

 
$
361

As % of Sales
 
16
%
 
16
%
 
7
 %
 
6
%
 
11
 %
 
10
%
 
9
%
 
15
%
EBITDA(d)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potash
 
$
392

 
$
451

 
$
155

 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

Phosphate
 
271

 
267

 
136

 
143

 
221

 
309

 
275

 
239

International Distribution
 
(8
)
 
19

 
38

 
12

 
10

 
18

 
32

 
24

Corporate and Other(e)
 
(7
)
 
(38
)
 
(16
)
 
23

 
(50
)
 
(13
)
 
(2
)
 
(14
)
Consolidated EBITDA(d)
 
$
648

 
$
699

 
$
313

 
$
351

 
$
438

 
$
595

 
$
463

 
$
565

Total Debt
 
$
1,081

 
$
1,033

 
$
1,027

 
$
3,032

 
$
3,051

 
$
3,026

 
$
3,816

 
$
3,833

Cash & cash equivalents
 
3,511

 
3,916

 
3,339

 
5,293

 
2,491

 
2,367

 
2,971

 
2,375

Net debt
 
$
(2,430
)
 
$
(2,883
)
 
$
(2,312
)
 
$
(2,261
)
 
$
560

 
$
659

 
$
845

 
$
1,458

Cash flow from operations
 
$
579

 
$
982

 
$
(45
)
 
$
503

 
$
627

 
$
796

 
$
489

 
$
382

Cash flow from investments
 
(378
)
 
(381
)
 
(466
)
 
(370
)
 
(1,634
)
 
(360
)
 
(158
)
 
(586
)
Cash flow from financing
 
(85
)
 
(152
)
 
(89
)
 
1,842

 
(1,770
)
 
(575
)
 
323

 
(319
)
Effect of exchange rate changes on cash
 
(10
)
 
(45
)
 
23

 
(20
)
 
(25
)
 
15

 
(50
)
 
(73
)
Net cash flow
 
$
106

 
$
404

 
$
(577
)
 
$
1,955

 
$
(2,802
)
 
$
(124
)
 
$
604

 
$
(596
)
Cash dividends paid
 
$
(106
)
 
$
(107
)
 
$
(107
)
 
$
(107
)
 
$
(100
)
 
$
(95
)
 
$
(94
)
 
$
(94
)
Operating Earnings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Potash
 
$
313

 
$
362

 
$
69

 
$
89

 
$
170

 
$
189

 
$
69

 
$
229

Phosphates
 
201

 
191

 
61

 
64

 
146

 
219

 
188

 
135

International Distribution
 
(10
)
 
17

 
36

 
10

 
8

 
16

 
30

 
22

Corporate and Other(e)
 
(13
)
 
(44
)
 
(22
)
 
16

 
(57
)
 
(21
)
 
(10
)
 
(21
)
Consolidated Operating Earnings
 
$
491

 
$
526

 
$
144

 
$
179

 
$
267

 
$
403

 
$
277

 
$
365

Segment data  (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Phosphates
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(f)(g)
 
2,065

 
2,077

 
1,754

 
2,395

 
2,051

 
2,637

 
2,176

 
2,392

Realized average DAP price/tonne(h)
 
$
486

 
$
476

 
$
436

 
$
370

 
$
413

 
$
465

 
$
463

 
$
447

Revenue
 
$
1,143

 
$
1,182

 
$
893

 
$
1,072

 
$
959

 
$
1,333

 
$
1,133

 
$
1,212

Segment Gross Margin
 
$
252

 
$
257

 
$
129

 
$
134

 
$
200

 
$
271

 
$
236

 
$
231

As % of Sales
 
22
%
 
22
%
 
14
 %
 
13
%
 
21
 %
 
20
%
 
21
%
 
19
%
Potash
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)(g)
 
2,007

 
2,448

 
1,380

 
1,862

 
2,355

 
2,500

 
1,808

 
2,309

Realized average MOP price/tonne(h)
 
$
376

 
$
366

 
$
342

 
$
303

 
$
267

 
$
267

 
$
291

 
$
295

Revenue
 
$
825

 
$
974

 
$
523

 
$
652

 
$
733

 
$
762

 
$
593

 
$
763

Segment Gross Margin
 
$
404

 
$
405

 
$
162

 
$
135

 
$
216

 
$
226

 
$
154

 
$
327

As % of Sales
 
49
%
 
42
%
 
31
 %
 
21
%
 
29
 %
 
30
%
 
26
%
 
43
%
International Distribution
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
792

 
1,102

 
1,282

 
1,133

 
870

 
1,185

 
1,398

 
1,113

Realized average Blend price/tonne(h)
 
$
557

 
$
557

 
$
504

 
$
455

 
$
449

 
$
454

 
$
469

 
$
427

Revenue
 
$
456

 
$
615

 
$
665

 
$
549

 
$
393

 
$
542

 
$
684

 
$
516

Segment Gross Margin
 
$
6

 
$
36

 
$
50

 
$
29

 
$
22

 
$
34

 
$
51

 
$
41

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





The Mosaic Company - Potash Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
440

 
$
480

 
$
279

 
$
470

 
$
515

 
$
447

 
$
396

 
$
494

International
 
385

 
494

 
244

 
182

 
218

 
315

 
197

 
269

Net Sales
 
$
825

 
$
974

 
$
523

 
$
652

 
$
733

 
$
762

 
$
593

 
$
763

Cost of Goods Sold
 
421

 
569

 
361

 
517

 
517

 
536

 
439

 
436

Gross Margin
 
$
404

 
$
405

 
$
162

 
$
135

 
$
216

 
$
226

 
$
154

 
$
327

As % of Sales
 
49
%
 
42
%
 
31
%
 
21
%
 
29
%
 
30
%
 
26
%
 
43
%
Freight included in revenue & cost of goods sold (in millions)(i)
 
$
44

 
$
51

 
$
28

 
$
61

 
$
73

 
$
57

 
$
51

 
$
69

Net sales less freight
 
$
781

 
$
923

 
$
495

 
$
591

 
$
660

 
$
705

 
$
542

 
$
694

Cost of Goods Sold less freight
 
$
377

 
$
518

 
$
333

 
$
456

 
$
444

 
$
479

 
$
388

 
$
367

Resources Taxes
 
$
32

 
$
67

 
$
31

 
$
57

 
$
30

 
$
45

 
$
46

 
$
48

Royalties
 
15

 
14

 
11

 
9

 
6

 
7

 
6

 
8

Total Resources Taxes & Royalties
 
$
47

 
$
81

 
$
42

 
$
66

 
$
36

 
$
52

 
$
52

 
$
56

Gross Margin (excluding Resources Taxes & Royalties)(j)
 
$
451

 
$
486

 
$
204

 
$
201

 
$
252

 
$
278

 
$
206

 
$
383

As % of Sales
 
55
%
 
50
%
 
39
%
 
31
%
 
34
%
 
36
%
 
35
%
 
50
%
Segment Operating Earnings
 
$
313

 
$
362

 
$
69

 
$
89

 
$
170

 
$
189

 
$
69

 
$
229

Depreciation, Depletion and Amortization
 
79

 
89

 
86

 
84

 
87

 
92

 
89

 
87

EBITDA(d)
 
$
392

 
$
451

 
$
155

 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

Cost of Goods Sold Detail (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
COGS additional detail
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Resource Taxes
 
$
32

 
$
67

 
$
31

 
$
57

 
$
30

 
$
45

 
$
46

 
$
48

Royalties
 
15

 
14

 
11

 
9

 
6

 
7

 
6

 
8

Brine Inflow Expenses
 
53

 
51

 
48

 
50

 
44

 
46

 
44

 
47

Depreciation, Depletion and Amortization
 
79

 
89

 
86

 
84

 
87

 
92

 
89

 
87

Total
 
$
179

 
$
221

 
$
176

 
$
200

 
$
167

 
$
190

 
$
185

 
$
190

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Crop Nutrients North America(g)
 
705

 
804

 
417

 
933

 
1,111

 
873

 
691

 
964

Crop Nutrients International(g)
 
1,134

 
1,468

 
781

 
744

 
1,065

 
1,427

 
919

 
1,228

Non-Agricultural
 
168

 
176

 
182

 
185

 
179

 
200

 
198

 
117

Total(g)
 
2,007

 
2,448

 
1,380

 
1,862

 
2,355

 
2,500

 
1,808

 
2,309

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Production Volume
 
2,197

 
2,161

 
1,957

 
1,741

 
1,871

 
2,044

 
1,666

 
2,584

Operating Rate(k)
 
83
%
 
81
%
 
73
%
 
65
%
 
70
%
 
76
%
 
62
%
 
91
%
Realized prices (FOB plant, $/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
MOP - North America crop nutrients(h)(l)
 
$
426

 
$
415

 
$
364

 
$
332

 
$
300

 
$
308

 
$
344

 
$
355

MOP - International(h)
 
$
327

 
$
326

 
$
294

 
$
225

 
$
209

 
$
225

 
$
232

 
$
239

MOP - Average(h)
 
$
376

 
$
366

 
$
342

 
$
303

 
$
267

 
$
267

 
$
291

 
$
295

Brine inflow cost/production tonne
 
$
24

 
$
24

 
$
25

 
$
29

 
$
24

 
$
23

 
$
26

 
$
18

MOP cash cost/sales tonne
 
$
125

 
$
142

 
$
149

 
$
164

 
$
136

 
$
134

 
$
137

 
$
97

EBITDA(d)/sales tonne(m)
 
$
195

 
$
184

 
$
112

 
$
93

 
$
109

 
$
112

 
$
87

 
$
137

Potash CAPEX  (in millions)
 
$
235

 
$
216

 
$
199

 
$
197

 
$
144

 
$
94

 
$
92

 
$
141






The Mosaic Company - Phosphates Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America
 
$
549

 
$
589

 
$
417

 
$
721

 
$
559

 
$
725

 
$
636

 
$
714

International
 
594

 
593

 
476

 
351

 
400

 
608

 
497

 
498

Net Sales
 
$
1,143

 
$
1,182

 
$
893

 
$
1,072

 
$
959

 
$
1,333

 
$
1,133

 
$
1,212

Cost of Goods Sold
 
891

 
925

 
764

 
938

 
759

 
1,062

 
897

 
981

Gross Margin
 
$
252

 
$
257

 
$
129

 
$
134

 
$
200

 
$
271

 
$
236

 
$
231

As % of Sales
 
22
%
 
22
%
 
14
%
 
13
%
 
21
%
 
20
%
 
21
%
 
19
%
Freight included in revenue & cost of goods sold (in millions)
 
$
75

 
$
90

 
$
74

 
$
112

 
$
81

 
$
100

 
$
88

 
$
103

Net sales less freight
 
$
1,068

 
$
1,092

 
$
819

 
$
960

 
$
878

 
$
1,233

 
$
1,045

 
$
1,109

Cost of Goods Sold less freight
 
$
816

 
$
835

 
$
690

 
$
826

 
$
678

 
$
962

 
$
809

 
$
878

PhosChem sales of other member
 
$
14

 
$
46

 
$
15

 
$
23

 
$
—

 
$
—

 
$
—

 
$
—

Segment Operating Earnings
 
$
201

 
$
191

 
$
61

 
$
64

 
$
146

 
$
219

 
$
188

 
$
135

Depreciation, Depletion and Amortization
 
69

 
71

 
72

 
75

 
79

 
93

 
91

 
97

Equity Earnings (Loss)
 
1

 
5

 
3

 
4

 
(4
)
 
(3
)
 
(4
)
 
7

EBITDA(d)
 
$
271

 
$
267

 
$
136

 
$
143

 
$
221

 
$
309

 
$
275

 
$
239

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
North America - DAP/MAP
 
638

 
682

 
515

 
1,116

 
747

 
948

 
805

 
837

International - DAP/MAP(e)(g)
 
866

 
795

 
687

 
577

 
650

 
1,040

 
878

 
882

MicroEssentials®(g)
 
430

 
459

 
407

 
541

 
510

 
481

 
357

 
502

Feed and Other
 
131

 
141

 
145

 
161

 
144

 
168

 
136

 
171

Total(f)
 
2,065

 
2,077

 
1,754

 
2,395

 
2,051

 
2,637

 
2,176

 
2,392

Production Volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total tonnes produced(n)
 
2,038

 
2,049

 
2,123

 
1,960

 
1,971

 
2,458

 
2,480

 
2,364

Operating Rate
 
84
%
 
84
%
 
88
%
 
81
%
 
79
%
 
84
%
 
85
%
 
81
%
Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP (FOB plant)(f)
 
$
486

 
$
476

 
$
436

 
$
370

 
$
413

 
$
465

 
$
463

 
$
447

Realized costs  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(o)
 
$
550

 
$
517

 
$
486

 
$
422

 
$
374

 
$
473

 
$
508

 
$
544

Sulfur (long ton)(p)
 
$
178

 
$
169

 
$
167

 
$
123

 
$
96

 
$
128

 
$
148

 
$
154

Blended rock
 
$
64

 
$
64

 
$
58

 
$
62

 
$
64

 
$
68

 
$
60

 
$
58

Average Market prices  ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ammonia (tonne)(q)
 
$
644

 
$
578

 
$
489

 
$
467

 
$
455

 
$
557

 
$
547

 
$
625

Sulfur (long ton)(r)
 
$
153

 
$
153

 
$
111

 
$
77

 
$
104

 
$
131

 
$
135

 
$
131

Natural Gas(s)
 
$
3.5

 
$
4.0

 
$
3.6

 
$
3.9

 
$
4.7

 
$
4.6

 
$
4.0

 
$
3.9

Full production conversion cost/production tonne
 
$
79

 
$
76

 
$
76

 
$
81

 
$
89

 
$
87

 
$
82

 
$
90

EBITDA(d)/sales tonne(m)
 
$
131

 
$
129

 
$
78

 
$
60

 
$
108

 
$
117

 
$
126

 
$
100

Phosphates CAPEX (in millions)
 
$
98

 
$
127

 
$
114

 
$
135

 
$
116

 
$
104

 
$
85

 
$
98






The Mosaic Company - International Distribution Segment
Selected Calendar Quarter Financial Information
(Unaudited)
 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Net Sales and Gross Margin (in millions, except per tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
456

 
$
615

 
$
665

 
$
549

 
$
393

 
$
542

 
$
684

 
$
516

Cost of Goods Sold
 
450

 
579

 
615

 
520

 
371

 
508

 
633

 
475

Gross Margin
 
$
6

 
$
36

 
$
50

 
$
29

 
$
22

 
$
34

 
$
51

 
$
41

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

 
$
33

 
$
39

 
$
26

 
$
25

 
$
29

 
$
36

 
$
37

SG&A and Other Operating Expenses
 
$
16

 
$
19

 
$
14

 
$
19

 
$
14

 
$
18

 
$
21

 
$
19

Segment Operating Earnings
 
$
(10
)
 
$
17

 
$
36

 
$
10

 
$
8

 
$
16

 
$
30

 
$
22

Depreciation, Depletion and Amortization
 
2

 
2

 
2

 
2

 
2

 
2

 
2

 
2

EBITDA(d)
 
$
(8
)
 
$
19

 
$
38

 
$
12

 
$
10

 
$
18

 
$
32

 
$
24

Operating Data
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Sales volumes ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total
 
792

 
1,102

 
1,282

 
1,133

 
870

 
1,185

 
1,398

 
1,113

Realized prices ($/tonne)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Blends (FOB destination)
 
$
557

 
$
557

 
$
504

 
$
455

 
$
449

 
$
454

 
$
469

 
$
427

Purchases ('000 tonnes)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DAP/MAP from Mosaic
 
83

 
127

 
220

 
212

 
93

 
290

 
331

 
214

MicroEssentials® from Mosaic
 
106

 
124

 
161

 
131

 
147

 
168

 
83

 
56

Potash from Mosaic/Canpotex
 
216

 
377

 
205

 
340

 
269

 
484

 
261

 
334

International Distribution CAPEX (in millions)
 
$
1

 
$
12

 
$
6

 
$
8

 
$
8

 
$
11

 
$
7

 
$
9

Working Capital (in millions)(t)
 
$
56

 
$
(51
)
 
$
103

 
$
87

 
$
38

 
$
(35
)
 
$
43

 
$
170

EBITDA(d)/sales tonne(m)
 
$
(10
)
 
$
17

 
$
30

 
$
11

 
$
11

 
$
15

 
$
23

 
$
22






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

 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Net Sales and Gross Margin (in millions)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Segment income statement
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net Sales
 
$
(112
)
 
$
(152
)
 
$
(172
)
 
$
(91
)
 
$
(99
)
 
$
(197
)
 
$
(159
)
 
$
(112
)
Cost of Goods Sold
 
(92
)
 
(119
)
 
(218
)
 
(115
)
 
(73
)
 
(187
)
 
(133
)
 
(92
)
Gross Margin (loss)
 
$
(20
)
 
$
(33
)
 
$
46

 
$
24

 
$
(26
)
 
$
(10
)
 
$
(26
)
 
$
(20
)
Elimination of profit in inventory (income) loss included in COGS
 
$
6

 
$
8

 
$
(30
)
 
$
(30
)
 
$
9

 
$
29

 
$
(3
)
 
$
(18
)
Unrealized (gain) loss on derivatives included in COGS
 
$
2

 
$
19

 
$
(24
)
 
$
3

 
$
4

 
$
(26
)
 
$
23

 
$
31

Segment Operating Earnings
 
$
(13
)
 
$
(44
)
 
$
(22
)
 
$
16

 
$
(57
)
 
$
(21
)
 
$
(10
)
 
$
(21
)
Depreciation, Depletion and Amortization
 
5

 
6

 
6

 
6

 
6

 
7

 
8

 
7

Equity Earnings (Loss)
 
1

 
—

 
—

 
1

 
1

 
1

 
—

 
—

EBITDA(d)
 
$
(7
)
 
$
(38
)
 
$
(16
)
 
$
23

 
$
(50
)
 
$
(13
)
 
$
(2
)
 
$
(14
)





Footnotes

(a)
Diluted earnings per share has been previously published in our Form 10-Q reports and quarterly performance data. It is not impacted by the change in operating segments.
(b)
Since Q4 2013, diluted weighted average number of shares reflects the impact of shares subject to the forward contract for our contractual share repurchase obligations.
(c)
Includes a discrete income tax benefit of approximately $45 million in Q3 2013, $63 million in Q1 2014, $14 million in Q2 2014, $29 million in Q3 2014, $100 million in Q4 2014 and a discrete income tax expense of approximately $104 million in Q4 2013.
(d)
The Company defines EBITDA as operating earnings plus depreciation, depletion and amortization plus equity earnings in nonconsolidated companies. EBITDA is a non-GAAP financial measure. 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"). A reconciliation of EBITDA to the nearest comparable GAAP measure and an explanation of why we include EBITDA appear below under "Non-GAAP Reconciliation".
(e)
Includes elimination of intersegment sales.
(f)
Excludes tonnes sold by PhosChem for its other member. Effective December 31, 2013, we and PhosChem's other member each assumed responsibility for PhosChem's former activities as they related to our respective products. We subsequently dissolved PhosChem.
(g)
Sales volumes include intersegment sales.
(h)
FOB Plant, sales to unrelated parties.
(i)
Includes inbound freight, outbound freight and warehousing costs on domestic MOP sales.
(j)
The Company has presented gross margin excluding Canadian resource taxes and royalties (“CRT”) for Potash which is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with GAAP. Gross margin excluding CRT provides a measure that we believe enhances the reader’s ability to compare our gross margin with that of other companies which incur CRT expense and classify it in a manner different than the Company in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, the Company’s management believes that the Company's presentation of gross margin excluding CRT for Potash affords them greater transparency in assessing the Company’s financial performance against competitors. Because not all companies use identical calculations, investors should consider that the Company's calculation may not be comparable to other similarly titled measures presented by other companies. Gross margin excluding CRT, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.
(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)
Calculated as EBITDA divided by sales tonnes.
(n)
Includes crop nutrient dry concentrates and animal feed ingredients.
(o)
Amounts are representative of our average ammonia costs in cost of goods sold.
(p)
Amounts are representative of our average sulfur cost in cost of goods sold.
(q)
Three point quarterly average (Fertecon).
(r)
Three point quarterly average (Green Markets).
(s)
Three point quarterly average (NYMEX).
(t)
Calculated as current assets less cash and liabilities for the International Distribution segment.





The Mosaic Company
Selected Calendar Quarter Financial Information
(Unaudited)

Non-GAAP Reconciliation
EBITDA is provided 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.  EBITDA should not be considered as an alternative to, or more meaningful than, net income as a measure of operating performance.  Since EBITDA is not a measure determined in accordance with GAAP and is thus susceptible to varying interpretations and calculations, EBITDA, as presented, may not be comparable to other similarly titled measures of other companies.  A reconciliation of net income to EBITDA is included below.

 
 
Q1 2013
 
Q2 2013
 
Q3 2013
 
Q4 2013
 
Q1 2014
 
Q2 2014
 
Q3 2014
 
Q4 2014
Potash EBITDA(d)
 
$
392

 
$
451

 
$
155

 
$
173

 
$
257

 
$
281

 
$
158

 
$
316

Phosphates EBITDA(d)
 
271

 
267

 
136

 
143

 
221

 
309

 
275

 
239

ID EBITDA(d)
 
(8
)
 
19

 
38

 
12

 
10

 
18

 
32

 
24

Corporate EBITDA(d)
 
(7
)
 
(38
)
 
(16
)
 
23

 
(50
)
 
(13
)
 
(2
)
 
(14
)
Consolidated EBITDA(d)
 
$
648

 
$
699

 
$
313

 
$
351

 
$
438

 
$
595

 
$
463

 
$
565

Consolidated Foreign Currency Gain/(Loss)
 
17

 
22

 
(30
)
 
25

 
43

 
(39
)
 
27

 
47

Consolidated Gain (Loss) in Value of Share Repurchase Agreement
 
—

 
—

 
—

 
73

 
(60
)
 
(5
)
 
5

 
—

Consolidated Interest Income/(Expense)
 
4

 
—

 
2

 
(12
)
 
(27
)
 
(25
)
 
(25
)
 
(31
)
Consolidated Depreciation, Depletion & Amortization
 
155

 
168

 
166

 
167

 
174

 
194

 
190

 
193

Consolidated Non-Controlling Interest
 
—

 
—

 
1

 
1

 
—

 
—

 
1

 
1

Consolidated Provision from/(Benefit for)Income Taxes
 
134

 
126

 
(6
)
 
131

 
(3
)
 
83

 
78

 
27

Consolidated Other Income (Expense)
 
—

 
3

 
—

 
(9
)
 
(5
)
 
(1
)
 
1

 
1

Consolidated Net Income
 
$
380

 
$
430

 
$
124

 
$
129

 
$
218

 
$
248

 
$
202

 
$
361







Furnished herewith as Exhibit 99.2 and incorporated by reference herein is a copy of a presentation entitled “Segment Reporting Changes March 2015,” which provides additional information regarding the Realignment and updated first quarter and full year guidance for 2015 reflecting the Realignment.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Reference is made to the Exhibit Index hereto with respect to the exhibits furnished herewith. The exhibits listed in the Exhibit Index hereto are being “furnished” in accordance with General Instruction B.2. of Form 8-K and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall they be deemed to be incorporated by reference in any filing under the Securities Act or the Exchange Act, except as expressly set forth by specific reference in such filing.

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
 
 
 
 
 
 
 
 
 
 
 
THE MOSAIC COMPANY
 
 
 
 
Date: March 13, 2015
 
 
 
By:
 
/s/ Mark J. Isaacson
 
 
 
 
Name:
 
Mark J. Isaacson
 
 
 
 
Title:
 
Vice President, General Counsel
 
 
 
 
 
 
and Corporate Secretary





EXHIBIT INDEX
Exhibit No.
  
Description
 
 
99.1
  
Press release, dated March 13, 2015, of The Mosaic Company regarding the realignment of its business segments.
 
 
99.2
  
Presentation entitled "Segment Reporting Changes March 2015"