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Published: 2023-11-07 16:11:28 ET

EX-99.2 3 performancedataq32023-ex992.htm EX-99.2 - PERFORMANCE DATA Document

Exhibit 99.2

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)


	Q4 2021			Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			Q3 2023
Consolidated data (in millions, except per share)
Diluted net earnings (loss) per share	$	1.76		$	3.19		$	2.85		$	2.42		$	1.52		$	1.28		$	1.11		$	(0.01)
Notable items impact on earnings per share(a)	(0.19)			0.78			(0.79)			(0.80)			(0.22)			0.14			0.07			(0.69)
Adjusted diluted net earnings per share(a)	$	1.95		$	2.41		$	3.64		$	3.22		$	1.74		$	1.14		$	1.04		$	0.68
Diluted weighted average # of shares outstanding	377.5			370.1			363.1			347.7			343.8			338.7			333.7			332.0

Total Net Sales	$	3,841		$	3,922		$	5,373		$	5,348		$	4,481		$	3,604		$	3,395		$	3,548
Cost of goods sold	2,693			2,483			3,526			3,846			3,512			2,934			2,824			3,139
Gross Margin	$	1,148		$	1,439		$	1,847		$	1,502		$	969		$	670		$	571		$	409
SG&A	123			133			108			124			133			127			130			120
Other operating (income) expense	55			50			65			224			136			(2)			72			144
Operating earnings	$	970		$	1,256		$	1,674		$	1,154		$	700		$	545		$	369		$	145
Interest expense, net	(39)			(40)			(34)			(31)			(34)			(41)			(36)			(17)
Consolidated foreign currency gain/(loss)	(44)			311			(227)			(61)			75			51			149			(97)
Earnings from consolidated companies before income taxes	886			1,527			1,377			1,061			677			546			474			(19)
Provision for (benefit from) income taxes	245			372			369			277			206			118			108			(6)
Earnings (loss) from consolidated companies	$	641		$	1,155		$	1,008		$	784		$	471		$	428		$	366		$	(13)
Equity in net earnings (loss) of nonconsolidated companies	20			31			36			72			57			31			13			16
Less: Net earnings (loss) attributable to noncontrolling interests	(4)			4			8			14			5			24			10			7
Net earnings (loss) attributable to Mosaic	$	665		$	1,182		$	1,036		$	842		$	523		$	435		$	369		$	(4)
After tax Notable items included in earnings	$	(73)		$	288		$	(286)		$	(277)		$	(75)		$	46		$	22		$	(231)

Gross Margin Rate	30		%	37		%	34		%	28		%	22		%	19		%	17		%	12		%

Effective Tax Rate (including discrete tax)	28		%	24		%	27		%	26		%	30		%	22		%	23		%	32		%
Discrete Tax benefit (expense)	$	(26)		$	9		$	(14)		$	(12)		$	(9)		$	14		$	10		$	17

Depreciation, Depletion and Amortization	$	214		$	226		$	245		$	229		$	233		$	220		$	244		$	239
Accretion Expense	$	19		$	20		$	20		$	19		$	22		$	23		$	23		$	23
Share-Based Compensation Expense	$	6		$	16		$	(1)		$	6		$	6		$	12		$	9		$	6
Notable Items	$	59		$	(374)		$	361		$	354		$	84		$	(66)		$	(32)		$	335
Adjusted EBITDA(b)	$	1,227		$	1,451		$	2,028		$	1,686		$	1,051		$	777		$	744		$	594

Net cash provided by (used in) operating activities	$	431		$	506		$	1,585		$	889		$	956		$	149		$	1,073		$	647
Cash paid for interest (net of amount capitalized)	82			4			80			3			83			8			80			5
Cash paid for income taxes (net of refunds)	36			259			233			253			370			226			147			49
Net cash used in investing activities	$	(392)		$	(297)		$	(265)		$	(355)		$	(343)		$	(221)		$	(312)		$	(422)
Capital expenditures	(363)			(291)			(263)			(354)			(341)			(322)			(310)			(412)
Net cash (used in) provided by financing activities	$	(107)		$	(125)		$	(1,331)		$	(650)		$	(573)		$	(209)		$	(607)		$	(254)
Cash dividends paid	(28)			(41)			(54)			(51)			(51)			(152)			(68)			(66)
Effect of exchange rate changes on cash	$	(5)		$	31		$	(33)		$	(20)		$	(8)		$	4		$	9		$	(10)
Net change in cash and cash equivalents	$	(72)		$	115		$	(44)		$	(135)		$	32		$	(277)		$	164		$	(39)

Short-term debt	$	303		$	481		$	17		$	201		$	225		$	855		$	229		$	300
Long-term debt (including current portion)	3,979			3,977			3,960			3,959			3,397			3,389			3,393			3,357
Cash & cash equivalents	770			882			839			703			735			465			626			591
Net debt	$	3,512		$	3,576		$	3,138		$	3,457		$	2,887		$	3,779		$	2,996		$	3,066

Segment Contributions (in millions)
Phosphate	$	1,466		$	1,496		$	1,801		$	1,577		$	1,310		$	1,382		$	1,286		$	986
Potash	897			1,060			1,580			1,432			1,136			907			849			720
Mosaic Fertilizantes	1,535			1,488			2,260			2,629			1,910			1,343			1,419			1,731
Corporate and Other(c)	(57)			(122)			(268)			(290)			125			(28)			(159)			111
Total net sales	$	3,841		$	3,922		$	5,373		$	5,348		$	4,481		$	3,604		$	3,395		$	3,548

Phosphate	$	418		$	493		$	578		$	131		$	145		$	266		$	146		$	(58)
Potash	443			563			915			793			497			402			328			200
Mosaic Fertilizantes	195			187			420			323			(20)			(32)			(20)			77
Corporate and Other(c)	(86)			13			(239)			(93)			78			(91)			(85)			(74)
Consolidated operating earnings	$	970		$	1,256		$	1,674		$	1,154		$	700		$	545		$	369		$	145



Phosphate(d)	1,813	1,661	1,675	1,651	1,571	1,836	1,922	1,651
Potash(d)	2,072	1,792	2,304	2,142	1,863	1,910	2,163	2,220
Mosaic Fertilizantes	2,347	1,822	2,320	2,824	2,472	2,080	2,385	3,060
Corporate and Other	432	370	533	221	466	420	359	482
Total finished product tonnes sold ('000 tonnes)	6,664	5,645	6,832	6,838	6,372	6,246	6,829	7,413
Sales of Performance Products ('000 tonnes)(e)	1,077	711	741	790	1,265	819	977	1,305

The Mosaic Company - Phosphate Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q4 2021			Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			Q3 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	1,466		$	1,496		$	1,801		$	1,577		$	1,310		$	1,382		$	1,286		$	986
Cost of Goods Sold	1,006			968			1,159			1,219			1,078			1,123			1,070			899
Gross Margin	$	460		$	528		$	642		$	358		$	232		$	259		$	216		$	87
Notable Items Included in Gross Margin	(9)			—			—			(9)			(30)			—			(31)			—
Adjusted Gross Margin(b)	$	469		$	528		$	642		$	367		$	262		$	259		$	247		$	87

SG&A	15			8			10			8			15			10			11			10
Other operating (income) expense	27			27			54			219			72			(17)			59			135

Operating Earnings	$	418		$	493		$	578		$	131		$	145		$	266		$	146		$	(58)
Plus: Depreciation, Depletion and Amortization	115			120			133			121			111			116			129			117
Plus: Accretion Expense	13			13			14			13			15			16			16			16
Plus: Foreign Exchange Gain (Loss)	(11)			(7)			—			3			(4)			(2)			(2)			4
Plus: Other Income (Expense)	—			—			(24)			1			(9)			—			(1)			(6)
Plus: Dividends from equity investments	—			—			—			—			—			25			—			—
Less: Earnings (loss) from Consolidated Noncontrolling Interests	(3)			4			9			14			5			25			12			8
Plus: Notables Items	33			17			66			226			95			(14)			109			136
Adjusted EBITDA(b)	$	571		$	632		$	758		$	481		$	348		$	382		$	385		$	201

Capital expenditures	$	187		$	148		$	157		$	168		$	159		$	142		$	119		$	157
Gross Margin $ / tonne of finished product	$	254		$	318		$	383		$	217		$	148		$	141		$	112		$	53
Adjusted Gross Margin $ / tonne of finished product	$	259		$	318		$	383		$	222		$	167		$	141		$	129		$	53
Gross margin as a percent of sales	31		%	35		%	36		%	23		%	18		%	19		%	17		%	9		%

Freight included in finished goods (in millions)	$	103		$	90		$	94		$	98		$	95		$	96		$	102		$	92
Idle/Turnaround costs (excluding notable items)	$	25		$	31		$	79		$	79		$	70		$	42		$	34		$	25

Operating Data
Sales volumes ('000 tonnes)(d)
DAP/MAP	907			917			814			824			844			1,022			928			913
Performance & other products(f)	813			659			780			750			640			740			919			673
Other products(i)	93			85			81			77			87			74			75			65
Total Finished Product(d)	1,813			1,661			1,675			1,651			1,571			1,836			1,922			1,651

DAP selling price (fob plant)(q)	$	676		$	785		$	920		$	809		$	722		$	660		$	585		$	487
Average finished product selling price (destination)(g)	$	758		$	877		$	1,048		$	924		$	794		$	717		$	634		$	569

Production Volumes ('000 tonnes)
Total tonnes produced(h)	1,857			1,745			1,636			1,664			1,602			1,836			1,660			1,593
Operating Rate	75		%	70		%	66		%	67		%	65		%	74		%	67		%	64		%

Raw Materials
Ammonia used in production	$	287		$	258		$	236		$	236		$	243		$	274		$	240		$	234
% manufactured ammonia used in production	20		%	34		%	22		%	5		%	42		%	29		%	44		%	32		%
Sulfur used in production	$	848		$	818		$	764		$	781		$	745		$	840		$	771		$	735
% prilled sulfur used in production	17		%	11		%	5		%	—		%	3		%	7		%	11		%	5		%

Realized costs ($/tonne)
Ammonia (tonne)(j)	$	463		$	532		$	591		$	665		$	653		$	605		$	441		$	353
Sulfur (long ton)(k)	$	229		$	281		$	385		$	436		$	348		$	236		$	195		$	156
Blended rock	$	64		$	61		$	64		$	68		$	78		$	77		$	79		$	81

Phosphate cash conversion costs, production / tonne(r)	$	71		$	76		$	86		$	85		$	96		$	96		$	105		$	105
Cash costs of U.S. mined rock/production tonne(s)	$	44		$	50		$	46		$	41		$	48		$	58		$	56		$	56

ARO cash spending (in millions)	$	26		$	33		$	28		$	33		$	43		$	41		$	41		$	42


MWSPC equity earnings (loss)	$	20	$	31	$	34	$	72	$	58	$	31	$	10	$	17
MWSPC total sales tonnes (DAP/MAP/NPK)	653		592		413		599		684		762		649		771

Miski Mayo external sales revenue	$	18	$	26	$	21	$	33	$	38	$	41	$	47	$	33

The Mosaic Company - Potash Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q4 2021			Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			Q3 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	897		$	1,060		$	1,580		$	1,432		$	1,136		$	907		$	849		$	720
Cost of Goods Sold	433			481			652			633			598			494			513			510
Gross Margin	$	464		$	579		$	928		$	799		$	538		$	413		$	336		$	210
Notable Items Included in Gross Margin	—			—			—			—			—			—			—			—
Adjusted Gross Margin(b)	$	464		$	579		$	928		$	799		$	538		$	413		$	336		$	210

SG&A	11			7			8			6			9			8			7			6
Other operating (income) expense	10			9			5			—			32			3			1			4

Operating Earnings	$	443		$	563		$	915		$	793		$	497		$	402		$	328		$	200
Plus: Depreciation, Depletion and Amortization	68			77			81			76			73			70			74			66
Plus: Accretion Expense	2			2			2			2			2			2			2			2
Plus: Foreign Exchange Gain (Loss)	3			17			(23)			(19)			6			3			23			(26)
Plus: Other Income (Expense)	—			—			—			—			—			—			—			(43)
Plus: Notable Items	1			(8)			23			19			19			(3)			(19)			68
Adjusted EBITDA(b)	$	517		$	651		$	998		$	871		$	597		$	474		$	408		$	267

Capital expenditures	$	92		$	65		$	67		$	78		$	72		$	93		$	74		$	85
Gross Margin $ / tonne of finished product	$	224		$	323		$	403		$	373		$	289		$	216		$	155		$	95
Adjusted Gross Margin $ / tonne of finished product	$	224		$	323		$	403		$	373		$	289		$	216		$	155		$	95
Gross margin as a percent of sales	52		%	55		%	59		%	56		%	47		%	46		%	40		%	29		%

Supplemental Cost Information
Canadian resource taxes	$	113		$	157		$	274		$	258		$	238		$	121		$	95		$	86
Royalties	$	15		$	27		$	32		$	31		$	24		$	19		$	13		$	9
Freight(l)	$	65		$	70		$	76		$	55		$	66		$	80		$	94		$	99
Idle/Turnaround costs (excluding notable items)	$	11		$	15		$	9		$	13		$	24		$	22		$	35		$	37

Operating Data
Sales volumes ('000 tonnes)(d)
MOP	1,870			1,532			2,045			1,952			1,707			1,696			1,883			2,031
Performance & other products(m)	187			243			245			178			143			201			270			177
Other products(i)	15			17			14			12			13			13			10			12
Total Finished Product(d)	2,072			1,792			2,304			2,142			1,863			1,910			2,163			2,220

Crop Nutrients North America	610			618			727			439			594			739			881			1,129
Crop Nutrients International	1,301			1,020			1,415			1,574			1,145			1,053			1,144			1,007
Non-Agricultural	161			154			162			129			125			118			138			84
Total Finished Product(d)	2,072			1,792			2,304			2,142			1,863			1,910			2,163			2,220

MOP selling price (fob mine)(o)	$	414		$	582		$	678		$	666		$	581		$	421		$	326		$	266
Average finished product selling price (destination)(g)	$	433		$	591		$	686		$	669		$	610		$	475		$	392		$	324

Production Volumes ('000 tonnes)
Production Volume	2,208			2,200			2,436			2,266			2,151			1,944			1,921			1,854
Operating Rate	81		%	80		%	87		%	81		%	77		%	69		%	69		%	66		%

MOP cash costs of production including brine / production tonne(n)	$	71		$	81		$	78		$	78		$	76		$	81		$	74		$	73
ARO cash spending (in millions)	$	15		$	18		$	13		$	11		$	5		$	3		$	3		$	3

Average CAD / USD	$	1.261		$	1.267		$	1.276		$	1.304		$	1.358		$	1.352		$	1.343		$	1.342

The Mosaic Company - Mosaic Fertilizantes Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q4 2021			Q1 2022			Q2 2022			Q3 2022			Q4 2022			Q1 2023			Q2 2023			Q3 2023
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	1,535		$	1,488		$	2,260		$	2,629		$	1,910		$	1,343		$	1,419		$	1,731
Cost of Goods Sold	1,313			1,269			1,810			2,281			1,882			1,344			1,406			1,625
Gross Margin	$	222		$	219		$	450		$	348		$	28		$	(1)		$	13		$	106
Notable Items Included in Gross Margin	23			(18)			—			14			(1)			—			(13)			(2)
Adjusted Gross Margin(b)	$	199		$	237		$	450		$	334		$	29		$	(1)		$	26		$	108

SG&A	24			21			27			25			29			26			29			26
Other operating (income) expense	3			11			3			—			19			5			4			3

Operating Earnings	$	195		$	187		$	420		$	323		$	(20)		$	(32)		$	(20)		$	77
Plus: Depreciation, Depletion and Amortization	28			25			27			28			45			32			38			54
Plus: Accretion Expense	4			4			4			4			5			5			5			5
Plus: Foreign Exchange Gain (Loss)	(31)			119			(83)			(66)			38			23			73			(48)
Plus: Other Income (Expense)	(1)			(1)			(1)			(1)			(1)			(1)			(1)			(1)
Less: Earnings from Consolidated Noncontrolling Interests	—			—			(1)			—			—			—			(2)			—
Plus: Notable Items	2			(101)			76			55			(38)			(24)			(31)			60
Adjusted EBITDA(b)	$	197		$	233		$	444		$	343		$	29		$	3		$	66		$	147

Capital expenditures	$	81		$	75		$	39		$	92		$	100		$	87		$	63		$	118
Gross Margin $ / tonne of finished product	$	95		$	120		$	194		$	123		$	11		$	(1)		$	5		$	35
Adjusted Gross Margin $ / tonne of finished product	$	85		$	130		$	194		$	118		$	12		$	(1)		$	11		$	35
Gross margin as a percent of sales	14		%	15		%	20		%	13		%	1		%	—		%	1		%	6		%
Idle/Turnaround costs (excluding notable items)	$	25		$	9		$	30		$	44		$	29		$	11		$	30		28

Operating Data
Sales volumes ('000 tonnes)
Phosphate produced in Brazil	599			737			638			488			505			510			611			622
Potash produced in Brazil	59			46			46			33			40			44			44			62
Purchased nutrients for distribution(p)	1,689			1,039			1,636			2,303			1,927			1,526			1,730			2,376
Total Finished Product	2,347			1,822			2,320			2,824			2,472			2,080			2,385			3,060

Sales of Performance Products ('000 tonnes)(e)	375			155			290			574			473			211			283			660

Brazil MAP price (Brazil production delivered price to third party)	$	765		$	882		$	1,021		$	866		$	663		$	669		$	653		$	533
Average finished product selling price (destination)(g)	$	654		$	817		$	974		$	931		$	773		$	646		$	595		$	566

Production Volumes ('000 tonnes)
MAP	233			261			266			174			261			235			219			160
TSP	102			131			129			85			82			106			88			131
SSP	349			312			275			343			332			283			240			321
DCP	124			127			85			114			126			108			133			133
NPK	55			64			55			25			49			45			56			62
Total phosphate tonnes produced	863			895			810			741			851			777			736			807
MOP	97			94			38			69			100			82			61			106

Phosphate operating rate	89		%	92		%	83		%	76		%	87		%	78		%	74		%	81		%
Potash operating rate	74		%	72		%	29		%	55		%	80		%	65		%	49		%	85		%

Realized Costs ($/tonne)
Ammonia/tonne	$	775		$	1,145		$	1,396		$	1,267		$	1,354		$	1,150		$	912		$	667


Sulfur (long ton)	$	251	$	337	$	384	$	432	$	402	$	278	$	258	$	219
Blended rock	$	83	$	105	$	102	$	106	$	106	$	124	$	128	$	117

Purchases ('000 tonnes)
DAP/MAP from Mosaic	89		102		102		30		38		146		117		20
MicroEssentials® from Mosaic	243		248		448		370		205		277		427		152
Potash from Mosaic/Canpotex	550		398		663		798		417		235		756		672

Phosphate cash conversion costs in BRL, production / tonne(r)	R$388		R$403		R$506		R$533		R$483		R$538		R$540		R$495
Potash cash conversion costs in BRL, production / tonne	R$1,059		R$1,296		R$2,285		R$1,591		R$1,176		R$1,455		R$1,701		R$1,143
Mined rock costs in BRL, cash produced / tonne	R$456		R$557		R$500		R$525		R$632		R$606		R$533		R$498
ARO cash spending (in millions)	$	5	$	2	$	4	$	5	$	11	$	3	$	4	$	6

Average BRL / USD	$	5.579	$	5.235	$	4.917	$	5.244	$	5.255	$	5.196	$	4.954	$	4.880

The Mosaic Company - Corporate and Other Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		Q3 2023
Net Sales and Gross Margin (in millions)
Segment income statement
Net Sales	$	(57)	$	(122)	$	(268)	$	(290)	$	125	$	(28)	$	(159)	$	111
Cost of Goods Sold	(59)		(235)		(95)		(287)		(46)		(27)		(165)		105
Gross Margin (Loss)	$	2	$	113	$	(173)	$	(3)	$	171	$	(1)	$	6	$	6
Notable items Included in Gross Margin	(18)		100		(62)		(76)		14		(1)		34		(45)
Adjusted Gross Margin (Loss)(b)	$	20	$	13	$	(111)	$	73	$	157	$	—	$	(28)	$	51

SG&A	73		97		63		85		80		83		83		78
Other operating (income) expense	15		3		3		5		13		7		8		2

Operating Earnings (Loss)	$	(86)	$	13	$	(239)	$	(93)	$	78	$	(91)	$	(85)	$	(74)
Plus: Depreciation, Depletion and Amortization	3		4		4		4		4		2		3		2
Plus: Share-Based Compensation Expense	6		16		(1)		6		6		12		9		6
Plus: Foreign Exchange Gain (Loss)	(4)		182		(121)		21		34		27		54		(26)
Plus: Other Income (Expense)	—		2		(11)		(1)		(53)		(7)		(5)		—
Less: Earnings (Loss) from Consolidated Noncontrolling Interests	—		—		—		—		—		—		—		—
Plus: Notable Items	23		(282)		196		54		8		(25)		(91)		71
Adjusted EBITDA(b)	$	(58)	$	(65)	$	(172)	$	(9)	$	77	$	(82)	$	(115)	$	(21)

Elimination of profit in inventory included in COGS	$	(29)	$	(76)	$	(180)	$	104	$	171	$	20	$	35	$	45
Unrealized gain (loss) on derivatives included in COGS	$	(17)	$	100	$	(59)	$	(76)	$	14	$	(1)	$	34	$	(45)

Operating Data
Sales volumes ('000 tonnes)	432		370		533		221		466		420		359		482
Sales of Performance Products ('000 tonnes)	12		1		14		9		6		—		—		—

Average finished product selling price (destination)(g)	$	539	$	597	$	732	$	720	$	692	$	636	$	478	$	423

Purchases ('000 tonnes)
DAP/MAP from Mosaic	—		—		—		6		47		—		31		—
MicroEssentials® from Mosaic	4		15		—		15		1		16		3		—
Potash from Mosaic/Canpotex	304		220		471		332		337		296		126		—

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

Notable Items


Q3 2023
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(107)	$	27	$	(0.23)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(45)		12		(0.10)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(12)		3		(0.03)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(2)		1		—
Realized gain (loss) on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	(6)		1		(0.01)
ARO Adjustment	Phosphate	Other operating income (expense)	(123)		32		(0.28)
Environmental reserve	Phosphate	Other operating income (expense)	(3)		1		(0.01)
Pension plan termination settlement	Potash	Other non-operating income (expense)	(42)		10		(0.10)
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		22		0.07
Total Notable Items			$	(340)	$	109	$	(0.69)


Q2 2023
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Unrealized foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	114	$	(28)	$	0.26
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	34		(9)		0.08
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(12)		3		(0.03)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(13)		3		(0.03)
Realized gain (loss) on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	2		—		—
ARO Adjustment	Phosphate	Other operating income (expense)	(28)		7		(0.06)
Environmental reserve	Phosphate	Other operating income (expense)	(37)		9		(0.08)
Land reclamation	Phosphate	Cost of goods sold	(31)		8		(0.07)
Total Notable Items			$	29	$	(7)	$	0.07


Q1 2023
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	51	$	(12)	$	0.11
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(1)		—		—
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(12)		3		(0.03)
Gain on sale of Streamsong Resort	Phosphate	Other operating income (expense)	57		(14)		0.13
Realized gain (loss) on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	(8)		2		(0.02)
ARO Adjustment	Phosphate	Other operating income (expense)	(20)		5		(0.04)
Environmental reserve	Phosphate	Other operating income (expense)	(6)		1		(0.01)
Total Notable Items			$	61	$	(15)	$	0.14


Q4 2022
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	75	$	(18)	$	0.16
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	14		(4)		0.03
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(11)		3		(0.03)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(1)		—		—
Fixed asset write-off	Phosphate	Other operating income (expense)	(6)		2		(0.01)
ARO Adjustment	Potash	Other operating income (expense)	3		(1)		0.01
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(9)		(0.03)
Realized gain (loss) on RCRA Trust Securities	Phosphates	Other non-operating income (expense)	(20)		5		(0.04)
Environmental reserve	Phosphates	Other operating income (expense)	(44)		11		(0.09)
Hurricane Ian idle costs	Phosphates	Cost of goods sold	(30)		8		(0.07)
Insurance proceeds	Phosphates	Other operating income (expense)	5		(1)		0.01
Pension plan termination settlement	Consolidated	Other non-operating income (expense)	(42)		10		(0.09)
Environmental reserve	Potash	Other operating income (expense)	(28)		7		(0.06)
Lease termination and severance	Corporate and Other	Other operating income (expense)	(4)		1		(0.01)
Total Notable Items			$	(89)	$	14	$	(0.22)


Q3 2022
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(61)	$	16	$	(0.13)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(76)		20		(0.16)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(12)		4		(0.02)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	14		(4)		0.03
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(12)		(0.04)
ARO Adjustment	Phosphates	Other operating income (expense)	(143)		36		(0.31)
Environmental reserve	Phosphates	Other operating income (expense)	(71)		18		(0.15)
Hurricane Ian idle costs	Phosphates	Cost of goods sold	(9)		2		(0.02)
Insurance proceeds	Phosphates	Other operating income (expense)	4		(1)		0.01
ARO Adjustment	Mosaic Fertilizantes	Other operating income (expense)	(3)		1		(0.01)
Total Notable Items			$	(357)	$	80	$	(0.80)


Q2 2022
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(227)	$	57	$	(0.47)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(59)		15		(0.12)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(9)		3		(0.03)
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(14)		(0.04)
Realized gain (loss) on RCRA Trust Securities	Phosphates	Other non-operating income (expense)	(26)		7		(0.05)
Gain on sale of plant	Mosaic Fertilizantes	Other operating income (expense)	7		(2)		0.02
ARO Adjustment	Phosphates	Other operating income (expense)	(5)		1		(0.01)
Environmental reserve	Phosphates	Other operating income (expense)	(30)		7		(0.06)
Write down of investment	Corporate and Other	Other non-operating income (expense)	(12)		3		(0.02)
Inventory lower of cost or market	Corporate and Other	Cost of goods sold	(3)		1		(0.01)
Total Notable Items			$	(364)	$	78	$	(0.79)


Q1 2022
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	311	$	(78)	$	0.62
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	100		(25)		0.21
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(9)		3		(0.02)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(18)		5		(0.03)
Fixed asset write-off	Phosphate	Other operating income (expense)	(4)		1		(0.01)
ARO Adjustment	Potash	Other operating income (expense)	(9)		2		(0.02)
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		9		0.03
Total Notable Items			$	371	$	(83)	$	0.78


Q4 2021
Description	Segment	Line Item	Amount (in millions)		Tax Effect(t) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(44)	$	11	$	(0.09)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(18)		5		(0.03)
Closed and indefinitely idled facility costs	Phosphates	Other operating income (expense)	(9)		3		(0.02)
Pre-acquisition reserve adjustment	Mosaic Fertilizantes	Other operating income (expense)	5		(2)		0.01
Realized gain on RCRA Trust Securities	Phosphates	Other non-operating income (expense)	(2)		1		—
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(26)		(0.06)
ARO Adjustment	Phosphates	Other operating income (expense)	(5)		1		(0.01)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	23		(6)		0.04
Hurricane Ida recovery	Phosphates	Cost of goods sold/Other income (expense)	(9)		2		(0.02)
ARO Adjustment	Potash	Other operating income (expense)	(4)		1		(0.01)
Total Notable Items			$	(63)	$	(10)	$	(0.19)

Footnotes

(a)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. Adjusted Diluted Net Earnings per Share is defined as diluted net earnings (loss) per share excluding the impact of notable items. See "Non-GAAP Reconciliations".

(b)See definitions of Adjusted EBITDA and Adjusted Gross Margin under “Non-GAAP Reconciliations”.

(c)Includes elimination of intersegment sales.

(d)Finished product sales volumes include intersegment sales.

(e)Includes MicroEssentials, K-Mag, Aspire and Sus-Terra sales tonnes.

(f)Includes MicroEssentials performance products.

(g)Average price of all finished products sold by Potash, Phosphate, Mosaic Fertilizantes and India/China.

(h)Includes crop nutrient dry concentrates and animal feed ingredients.

(i)Includes finished goods sales of feed and other products.

(j)Amounts are representative of our average ammonia costs in cost of goods sold.

(k)Amounts are representative of our average sulfur costs in cost of goods sold.

(l)Includes inbound freight, outbound freight and warehousing costs on K-Mag, animal feed and domestic MOP sales.

(m)Includes K-Mag, and Aspire finished performance products.

(n)MOP cash costs of production are reflective of actual costs during the period excluding brine management costs, depreciation, depletion, accretion, carbon-based and Canadian resource tax, idle and turnaround costs. Total Production costs for MOP production excludes K-Mag costs, Aspire raw material costs and incremental Aspire operating costs.

(o)Excludes industrial and feed sales. Price has been calculated using the average monthly foreign exchange rate.

(p)Includes sales volumes of phosphate and potash nutrients purchased from other Mosaic segments and Canpotex.

(q)Includes intersegment sales.

(r)Total production costs less depreciation, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of finished phosphate production in the period.

(s)Total production cost less depreciation/depletion, ARO costs including accretion and idle and turnaround costs divided by metric tonnes of rock produced in the period.

(t)Tax impact is based on our expected annual effective rate.

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

Non-GAAP Financial Measures

In addition to financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), Mosaic has presented in this Selected Calendar Quarter Financial Information certain non-GAAP financial measures, or measures calculated based on non-GAAP financial measures, including: Adjusted Diluted Net Earnings Per Share, Consolidated Adjusted EBITDA, Segment Adjusted EBITDA, and Adjusted Gross Margin. 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. 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.

Adjusted Diluted Net Earnings Per Share

Adjusted diluted net earnings per share is defined as diluted net earnings per share, excluding the impact of notable items. Notable items impact on diluted net 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. Management believes that adjusted diluted net earnings per share provides securities analysts, investors and others, in addition to management, with useful supplemental information regarding our performance by excluding certain items that may not be indicative of or are unrelated to our core operating results. Management utilizes adjusted diluted net earnings per share in analyzing and assessing Mosaic’s overall performance, for financial and operating decision-making, and to forecast and plan for the future periods. Adjusted diluted net earnings per share also assists our management in comparing our and our competitors' operating results. Reconciliations of adjusted diluted net earnings per share to diluted net earnings per share for the periods presented are provided under “Consolidated Data” on the first page of this Selected Calendar Quarter Financial Information.

Consolidated Adjusted EBITDA

Consolidated Adjusted EBITDA is defined as consolidated Net Income (Loss) before net interest expense, depreciation, depletion and amortization, asset retirement obligation accretion, share-based compensation expense and provision for/(benefit from) income taxes less equity in net earnings (loss) of nonconsolidated companies, net of dividends. Consolidated Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. Consolidated 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 (Loss) as a measure of operating performance. A reconciliation of Consolidated Net Income (Loss) to Consolidated Adjusted EBITDA is provided below.


(in millions)	Q4 2021		Q1 2022		Q2 2022		Q3 2022		Q4 2022		Q1 2023		Q2 2023		Q3 2023
Consolidated Net Income (Loss)	$	665	$	1,182	$	1,036	$	842	$	523	$	435	$	369	$	(4)
Less: Consolidated Interest Expense, Net	(39)		(40)		(34)		(31)		(34)		(41)		(36)		(17)
Plus: Consolidated Depreciation, Depletion & Amortization	214		226		245		229		233		220		244		239
Plus: Accretion Expense	19		20		20		19		22		23		23		23
Plus: Share-Based Compensation Expense (Benefit)	6		16		(1)		6		6		12		9		6
Plus: Consolidated Provision for (Benefit from) Income Taxes	245		372		369		277		206		118		108		(6)
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends	20		31		36		72		57		6		13		16
Plus: Notable Items	59		(374)		361		354		84		(66)		(32)		335
Consolidated Adjusted EBITDA	$	1,227	$	1,451	$	2,028	$	1,686	$	1,051	$	777	$	744	$	594

Segment Adjusted EBITDA

Adjusted EBITDA presented at the segment level is defined as the related segment's operating earnings (loss) plus depreciation, depletion and amortization, plus asset retirement obligation accretion, plus foreign exchange gain (loss), plus other income (expense), plus dividends from equity investments, less equity earnings (loss) from noncontrolling interests. Adjusted EBITDA is also adjusted for notable items that management excludes in analyzing our performance. 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 should not be considered as alternatives to, or more meaningful than, segment Operating Earnings (Loss) and segment Operating Earnings (Loss)/sales tonne, respectively, as measures of operating performance. Management believes Operating Earnings (Loss) and segment Operating Earnings (Loss)/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 to segment Operating Earnings (Loss) and segment Operating (Loss) Earnings/sales tonne, respectively, are provided as part of each segment's Selected Calendar Quarter Financial Information.

Adjusted Gross Margin

Adjusted gross margin is defined as gross margin excluding the impact of notable items. Management believes the adjusted measures provides security analysts, investors, management & others with useful supplemental information regarding our performance by excluding certain items that may not be indicative of, or are unrelated to, our core operating results. Management utilizes adjusted gross margin in analyzing and assessing Mosaic's overall performance for financial and operating decision-making and to forecast and plan for future periods.