2016 Q4 Form 10-Q Financial Statement

#000161803416000043 Filed on November 01, 2016

View on sec.gov

Income Statement

Concept 2016 Q4 2016 Q3 2015 Q3
Revenue $1.862B $1.952B $2.106B
YoY Change -13.92% -7.28% -6.45%
Cost Of Revenue $1.656B $1.739B $1.770B
YoY Change -8.38% -1.77% -3.58%
Gross Profit $205.8M $213.3M $335.3M
YoY Change -42.11% -36.39% -19.15%
Gross Profit Margin 11.05% 10.93% 15.92%
Selling, General & Admin $74.60M $66.90M $76.60M
YoY Change -21.39% -12.66% -8.7%
% of Gross Profit 36.25% 31.36% 22.85%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $165.5M $172.7M $180.9M
YoY Change -10.54% -4.53% -4.54%
% of Gross Profit 80.42% 80.97% 53.95%
Operating Expenses $132.2M $66.90M $76.60M
YoY Change -12.57% -12.66% -8.7%
Operating Profit $73.60M $69.70M $246.0M
YoY Change -63.97% -71.67% -11.29%
Interest Expense -$57.30M -$57.90M -$72.80M
YoY Change -4.34% -20.47% -3931.58%
% of Operating Profit -77.85% -83.07% -29.59%
Other Income/Expense, Net -$4.600M $500.0K -$1.100M
YoY Change 70.37% -145.45% -1200.0%
Pretax Income $11.70M $12.30M $172.1M
YoY Change -91.74% -92.85% -39.53%
Income Tax -$5.500M -$30.10M $10.10M
% Of Pretax Income -47.01% -244.72% 5.87%
Net Earnings $11.90M $39.20M $160.0M
YoY Change -92.32% -75.5% -20.75%
Net Earnings / Revenue 0.64% 2.01% 7.6%
Basic Earnings Per Share $0.11 $0.45
Diluted Earnings Per Share $33.84K $0.11 $0.45
COMMON SHARES
Basic Shares Outstanding 350.2M shares 350.1M shares 354.3M shares
Diluted Shares Outstanding 351.5M shares 356.0M shares

Balance Sheet

Concept 2016 Q4 2016 Q3 2015 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $673.0M $654.0M $1.285B
YoY Change -47.26% -49.11% -57.35%
Cash & Equivalents $673.1M $653.5M $1.285B
Short-Term Investments
Other Short-Term Assets $365.7M $783.2M $578.5M
YoY Change -41.82% 35.38% 22.9%
Inventory $1.391B $1.500B $1.550B
Prepaid Expenses $99.90M $135.3M $70.90M
Receivables $628.0M $512.0M $675.0M
Other Receivables $146.0M $257.0M $185.0M
Total Short-Term Assets $3.058B $3.449B $4.263B
YoY Change -26.2% -19.09% -24.66%
LONG-TERM ASSETS
Property, Plant & Equipment $9.199B $9.231B $8.734B
YoY Change 5.48% 5.69% -7.22%
Goodwill $1.631B $1.652B $1.625B
YoY Change 2.23% 1.64% -6.68%
Intangibles
YoY Change
Long-Term Investments $1.063B $1.064B $876.1M
YoY Change 8.42% 21.48% 4.3%
Other Assets $1.054B $1.079B $1.196B
YoY Change -16.17% -9.84% 94.66%
Total Long-Term Assets $13.78B $13.81B $12.85B
YoY Change 4.05% 7.46% 0.45%
TOTAL ASSETS
Total Short-Term Assets $3.058B $3.449B $4.263B
Total Long-Term Assets $13.78B $13.81B $12.85B
Total Assets $16.84B $17.26B $17.12B
YoY Change -3.16% 0.85% -7.25%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $471.8M $486.9M $657.0M
YoY Change -9.37% -25.89% -13.8%
Accrued Expenses $837.3M $802.4M $896.3M
YoY Change -14.34% -10.48% 25.88%
Deferred Revenue
YoY Change
Short-Term Debt $100.0K $53.60M $18.00M
YoY Change -99.61% 197.78% 4400.0%
Long-Term Debt Due $39.00M $373.0M $42.00M
YoY Change -7.14% 788.1% 2.44%
Total Short-Term Liabilities $1.477B $1.939B $1.872B
YoY Change -27.86% 3.63% 20.77%
LONG-TERM LIABILITIES
Long-Term Debt $3.779B $3.450B $3.738B
YoY Change 0.24% -7.7% -0.95%
Other Long-Term Liabilities $952.9M $937.7M $986.0M
YoY Change -7.54% -4.9% -18.19%
Total Long-Term Liabilities $952.9M $937.7M $986.0M
YoY Change -7.54% -4.9% -18.19%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.477B $1.939B $1.872B
Total Long-Term Liabilities $952.9M $937.7M $986.0M
Total Liabilities $2.430B $2.877B $2.858B
YoY Change -21.05% 0.69% 3.72%
SHAREHOLDERS EQUITY
Retained Earnings $10.86B $11.05B $11.06B
YoY Change -1.37% -0.12% -0.85%
Common Stock $33.40M $19.30M $900.0K
YoY Change 421.88% 2044.44% 80.0%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.585B $9.837B $9.614B
YoY Change
Total Liabilities & Shareholders Equity $16.84B $17.26B $17.12B
YoY Change -3.16% 0.85% -7.25%

Cashflow Statement

Concept 2016 Q4 2016 Q3 2015 Q3
OPERATING ACTIVITIES
Net Income $11.90M $39.20M $160.0M
YoY Change -92.32% -75.5% -20.75%
Depreciation, Depletion And Amortization $165.5M $172.7M $180.9M
YoY Change -10.54% -4.53% -4.54%
Cash From Operating Activities $322.5M $88.30M $188.5M
YoY Change -37.69% -53.16% -47.12%
INVESTING ACTIVITIES
Capital Expenditures -$209.4M $196.4M $245.3M
YoY Change -29.76% -19.93% 30.2%
Acquisitions
YoY Change
Other Investing Activities -$56.70M -$778.9M -$577.3M
YoY Change -110.73% 34.92% -2005.28%
Cash From Investing Activities -$266.1M -$975.3M -$822.6M
YoY Change -215.44% 18.56% 420.3%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -254.5M -111.6M -131.0M
YoY Change -287.96% -14.81% -128.77%
NET CHANGE
Cash From Operating Activities 322.5M 88.30M 188.5M
Cash From Investing Activities -266.1M -975.3M -822.6M
Cash From Financing Activities -254.5M -111.6M -131.0M
Net Change In Cash -198.1M -998.6M -765.1M
YoY Change -122.42% 30.52% -217.02%
FREE CASH FLOW
Cash From Operating Activities $322.5M $88.30M $188.5M
Capital Expenditures -$209.4M $196.4M $245.3M
Free Cash Flow $531.9M -$108.1M -$56.80M
YoY Change -34.79% 90.32% -133.79%

Facts In Submission

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us-gaap Income Loss From Equity Method Investments
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Loss From Equity Method Investments Net Of Dividends Or Distributions
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us-gaap Income Tax Expense Benefit
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us-gaap Income Tax Reconciliation Other Reconciling Items
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us-gaap Income Tax Reconciliation Tax Settlements
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us-gaap Increase Decrease In Deferred Income Taxes
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us-gaap Increase Decrease In Deferred Income Taxes
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233500000 USD
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us-gaap Minority Interest Decrease From Distributions To Noncontrolling Interest Holders
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17100000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits Income Tax Penalties And Interest Accrued
UnrecognizedTaxBenefitsIncomeTaxPenaltiesAndInterestAccrued
1700000 USD
us-gaap Unrecognized Tax Benefits Period Increase Decrease
UnrecognizedTaxBenefitsPeriodIncreaseDecrease
-74400000 USD
CY2016Q3 us-gaap Unrecognized Tax Benefits That Would Impact Effective Tax Rate
UnrecognizedTaxBenefitsThatWouldImpactEffectiveTaxRate
8000000 USD
CY2015Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
356000000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
362300000 shares
CY2016Q3 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
351500000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
351700000 shares
CY2015Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
354300000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
360500000 shares
CY2016Q3 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
350100000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
350400000 shares
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Nature of Business </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Mosaic Company ("</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Mosaic</font><font style="font-family:inherit;font-size:10pt;">", and, with its consolidated subsidiaries, "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">we</font><font style="font-family:inherit;font-size:10pt;">", "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">us</font><font style="font-family:inherit;font-size:10pt;">", "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">our</font><font style="font-family:inherit;font-size:10pt;">", or the "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Company</font><font style="font-family:inherit;font-size:10pt;">") produces and markets concentrated phosphate and potash crop nutrients. We conduct our business through wholly and majority owned subsidiaries as well as businesses in which we own less than a majority or a noncontrolling interest, including consolidated variable interest entities and investments accounted for by the equity method. </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are organized into the following business segments:</font></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Phosphates</font><font style="font-family:inherit;font-size:10pt;"> business segment owns and operates mines and production facilities in Florida which produce concentrated phosphate crop nutrients and phosphate-based animal feed ingredients, and processing plants in Louisiana which produce concentrated phosphate crop nutrients. Included in the Phosphates segment is our </font><font style="font-family:inherit;font-size:10pt;">35%</font><font style="font-family:inherit;font-size:10pt;"> economic interest in a joint venture that owns the Miski Mayo Phosphate Mine in Peru and our </font><font style="font-family:inherit;font-size:10pt;">25%</font><font style="font-family:inherit;font-size:10pt;"> interest in the Ma'aden Wa'ad Al Shamal Phosphate Company (the "</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">MWSPC</font><font style="font-family:inherit;font-size:10pt;">") a joint venture to develop, own and operate integrated phosphate production facilities in the Kingdom of Saudi Arabia. Once operational, we will market approximately </font><font style="font-family:inherit;font-size:10pt;">25%</font><font style="font-family:inherit;font-size:10pt;"> of the MWSPC production.</font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Potash</font><font style="font-family:inherit;font-size:10pt;"> business segment owns and operates potash mines and production facilities in Canada and the U.S. which produce potash-based crop nutrients, animal feed ingredients and industrial products. Potash sales include domestic and international sales. We are a member of Canpotex, Limited ("</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Canpotex</font><font style="font-family:inherit;font-size:10pt;">"), an export association of Canadian potash producers through which we sell our Canadian potash outside the U.S. and Canada. </font></div></td></tr></table><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;" rowspan="1" colspan="1"></td><td rowspan="1" colspan="1"></td></tr><tr><td style="vertical-align:top" rowspan="1" colspan="1"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><font style="font-family:inherit;font-size:10pt;">&#8226;</font></div></td><td style="vertical-align:top;" rowspan="1" colspan="1"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our </font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">International Distribution</font><font style="font-family:inherit;font-size:10pt;"> business segment consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in several key non-U.S. countries, including Brazil, Paraguay, India and China. Our International Distribution segment serves as a distribution outlet for our Phosphates and Potash segments, but also purchases and markets products from other suppliers. </font></div></td></tr></table><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, and debt expenses are included within Corporate, Eliminations and Other. See Note </font><font style="font-family:inherit;font-size:10pt;">15</font><font style="font-family:inherit;font-size:10pt;"> of the Condensed Consolidated Financial Statements in this report for segment results.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:12px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Accounting Estimates </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Preparation of the Condensed Consolidated Financial Statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of net sales and expenses during the reporting periods. The most significant estimates made by management relate to the estimates of fair value of acquired assets and liabilities, the recoverability of non-current assets including goodwill, the useful lives and net realizable values of long-lived assets, environmental and reclamation liabilities including asset retirement obligations ("</font><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ARO</font><font style="font-family:inherit;font-size:10pt;">"), the costs of our employee benefit obligations for pension plans and postretirement benefits, income tax related accounts, including the valuation allowance against deferred income tax assets, inventory valuation and accruals for pending legal and environmental matters. Actual results could differ from these estimates. </font></div></div>

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