2019 Q4 Form 10-K Financial Statement

#000161803420000003 Filed on February 20, 2020

View on sec.gov

Income Statement

Concept 2019 Q4 2018 Q4 2018 Q1
Revenue $2.076B $2.521B $1.934B
YoY Change -17.62% 20.49% 22.53%
Cost Of Revenue $1.996B $2.054B $1.692B
YoY Change -2.86% 13.38% 16.78%
Gross Profit $80.70M $466.2M $242.1M
YoY Change -82.69% 66.44% 86.81%
Gross Profit Margin 3.89% 18.5% 12.52%
Selling, General & Admin $104.3M $89.70M $93.60M
YoY Change 16.28% 7.94% 15.7%
% of Gross Profit 129.24% 19.24% 38.66%
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $233.1M $235.1M $217.5M
YoY Change -0.85% 36.69% 36.96%
% of Gross Profit 288.85% 50.43% 89.84%
Operating Expenses $157.0M $207.8M $93.60M
YoY Change -24.45% 71.74% 15.7%
Operating Profit -$76.30M $258.4M $80.70M
YoY Change -129.53% 62.41% 168.11%
Interest Expense -$16.10M -$109.5M -$81.60M
YoY Change -85.3% 64.91% 382.84%
% of Operating Profit -42.38% -101.12%
Other Income/Expense, Net -$3.400M -$3.200M -$5.600M
YoY Change 6.25% 113.33% 24.44%
Pretax Income -$1.214B $145.3M -$6.500M
YoY Change -935.58% 145.44% -174.71%
Income Tax -$288.8M $32.70M -$49.90M
% Of Pretax Income 22.51%
Net Earnings -$921.0M $112.3M $42.30M
YoY Change -920.12% -126.05% -4800.0%
Net Earnings / Revenue -44.36% 4.46% 2.19%
Basic Earnings Per Share $0.11
Diluted Earnings Per Share -$2.432M $290.0K $0.11
COMMON SHARES
Basic Shares Outstanding 378.8M shares 385.5M shares 382.6M shares
Diluted Shares Outstanding 384.1M shares

Balance Sheet

Concept 2019 Q4 2018 Q4 2018 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments $519.0M $848.0M $659.0M
YoY Change -38.8% -60.63% -2.37%
Cash & Equivalents $519.1M $847.7M $659.4M
Short-Term Investments
Other Short-Term Assets $318.8M $280.6M $414.6M
YoY Change 13.61% 2.71% -3.45%
Inventory $2.076B $2.270B $1.534B
Prepaid Expenses $110.7M $86.80M $86.80M
Receivables $804.0M $839.0M $708.0M
Other Receivables $179.0M $149.0M $220.0M
Total Short-Term Assets $3.718B $4.237B $3.841B
YoY Change -12.24% -8.22% 19.44%
LONG-TERM ASSETS
Property, Plant & Equipment $11.69B $11.75B $11.87B
YoY Change -0.48% 20.95% 27.65%
Goodwill $1.157B $1.708B $1.761B
YoY Change -32.25% 0.82% 7.41%
Intangibles
YoY Change
Long-Term Investments $763.6M $826.6M $836.3M
YoY Change -7.62% -24.13% -21.37%
Other Assets $1.454B $1.258B $1.653B
YoY Change 15.63% -0.77% 54.06%
Total Long-Term Assets $15.58B $15.88B $16.61B
YoY Change -1.9% 13.31% 19.67%
TOTAL ASSETS
Total Short-Term Assets $3.718B $4.237B $3.841B
Total Long-Term Assets $15.58B $15.88B $16.61B
Total Assets $19.30B $20.12B $20.45B
YoY Change -4.08% 7.97% 19.63%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $680.4M $780.9M $679.4M
YoY Change -12.87% 44.37% 26.59%
Accrued Expenses $1.082B $1.093B $755.3M
YoY Change -0.97% 44.82% 3.55%
Deferred Revenue $266.9M $199.8M
YoY Change 33.58% 42.31%
Short-Term Debt $41.60M $11.50M $71.80M
YoY Change 261.74% 88.52% -42.14%
Long-Term Debt Due $47.00M $26.00M $251.0M
YoY Change 80.77% -92.44% 512.2%
Total Short-Term Liabilities $2.592B $2.484B $2.221B
YoY Change 4.35% 22.28% 35.94%
LONG-TERM LIABILITIES
Long-Term Debt $4.526B $4.492B $4.823B
YoY Change 0.76% -7.91% 27.36%
Other Long-Term Liabilities $1.773B $1.459B $1.551B
YoY Change 21.55% 50.72% 60.24%
Total Long-Term Liabilities $1.773B $1.459B $1.551B
YoY Change 21.55% 50.72% 60.24%
TOTAL LIABILITIES
Total Short-Term Liabilities $2.592B $2.484B $2.221B
Total Long-Term Liabilities $1.773B $1.459B $1.551B
Total Liabilities $4.365B $3.942B $3.771B
YoY Change 10.71% 31.46% 44.98%
SHAREHOLDERS EQUITY
Retained Earnings $9.922B $11.06B $10.63B
YoY Change -10.33% 4.08% -2.09%
Common Stock $862.2M $989.7M $981.0M
YoY Change -12.88% 1961.88% 3454.35%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $9.186B $10.40B $10.46B
YoY Change
Total Liabilities & Shareholders Equity $19.30B $20.12B $20.45B
YoY Change -4.08% 7.97% 19.63%

Cashflow Statement

Concept 2019 Q4 2018 Q4 2018 Q1
OPERATING ACTIVITIES
Net Income -$921.0M $112.3M $42.30M
YoY Change -920.12% -126.05% -4800.0%
Depreciation, Depletion And Amortization $233.1M $235.1M $217.5M
YoY Change -0.85% 36.69% 36.96%
Cash From Operating Activities $277.6M $150.0M -$71.00M
YoY Change 85.07% -63.52% -148.63%
INVESTING ACTIVITIES
Capital Expenditures -$286.0M -$289.1M $223.3M
YoY Change -1.07% 25.59% -0.22%
Acquisitions
YoY Change
Other Investing Activities -$60.80M $5.300M $2.100M
YoY Change -1247.17% -97.42% -142.0%
Cash From Investing Activities -$346.8M -$283.8M -$1.220B
YoY Change 22.2% 1058.37% 396.91%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net $206.9M
YoY Change 12831.25%
Cash From Financing Activities -65.90M -45.20M -$213.3M
YoY Change 45.8% -104.15% -308.71%
NET CHANGE
Cash From Operating Activities 277.6M 150.0M -$71.00M
Cash From Investing Activities -346.8M -283.8M -$1.220B
Cash From Financing Activities -65.90M -45.20M -$213.3M
Net Change In Cash -135.1M -179.0M -$1.491B
YoY Change -24.53% -112.12% -26730.36%
FREE CASH FLOW
Cash From Operating Activities $277.6M $150.0M -$71.00M
Capital Expenditures -$286.0M -$289.1M $223.3M
Free Cash Flow $563.6M $439.1M -$294.3M
YoY Change 28.35% -31.54% 278.28%

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ORGANIZATION AND NATURE OF BUSINESS<div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">The Mosaic Company (“</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Mosaic,</span><span style="font-family:inherit;font-size:10pt;">” and, with its consolidated subsidiaries, “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">we,</span><span style="font-family:inherit;font-size:10pt;">” “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">us,</span><span style="font-family:inherit;font-size:10pt;">” “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">our,</span><span style="font-family:inherit;font-size:10pt;">” or the “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Company</span><span 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 and 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.</span></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">On January 8, 2018, we completed our acquisition (the “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Acquisition</span><span style="font-family:inherit;font-size:10pt;">”) of Vale Fertilizantes S.A. (now known as Mosaic Fertilizantes P&amp;K S.A. or the “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Acquired Business</span><span style="font-family:inherit;font-size:10pt;">”). Upon completion of the Acquisition, we became the leading fertilizer producer and distributor in Brazil. </span></div><div style="line-height:120%;padding-top:12px;text-align:left;text-indent:24px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">We are organized into the following business segments:</span></div><table cellpadding="0" cellspacing="0" style="padding-top:8px;font-family:Times New Roman; font-size:10pt;"><tr><td style="width:48px;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><span style="font-family:inherit;font-size:10pt;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Our </span><span style="font-family:inherit;font-size:10pt;font-weight:bold;">Phosphates</span><span 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. As part of the Acquisition, we acquired an additional </span><span style="font-family:inherit;font-size:10pt;"><span>40%</span></span><span style="font-family:inherit;font-size:10pt;"> economic interest in the Miski Mayo Phosphate Mine in Peru, which increased our aggregate interest to </span><span style="font-family:inherit;font-size:10pt;"><span>75%</span></span><span style="font-family:inherit;font-size:10pt;">. These results are consolidated in the Phosphates segment. The Phosphates segment also includes our </span><span style="font-family:inherit;font-size:10pt;"><span>25%</span></span><span style="font-family:inherit;font-size:10pt;"> interest in the Ma'aden Wa'ad Al Shamal Phosphate Company (the “</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">MWSPC</span><span 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. We market approximately </span><span style="font-family:inherit;font-size:10pt;"><span>25%</span></span><span style="font-family:inherit;font-size:10pt;"> of the MWSPC phosphate production. We recognize our equity in the net earnings or losses relating to MWSPC on a one-quarter lag in our Consolidated Statements of Earnings.</span></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;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><span style="font-family:inherit;font-size:10pt;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Our </span><span style="font-family:inherit;font-size:10pt;font-weight:bold;">Potash</span><span 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 (“</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Canpotex</span><span 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.</span></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;"/><td/></tr><tr><td style="vertical-align:top"><div style="line-height:120%;font-size:10pt;padding-left:24px;"><span style="font-family:inherit;font-size:10pt;">•</span></div></td><td style="vertical-align:top;"><div style="line-height:120%;text-align:left;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Our </span><span style="font-family:inherit;font-size:10pt;font-weight:bold;">Mosaic Fertilizantes</span><span style="font-family:inherit;font-size:10pt;"> business segment includes the assets in Brazil that we acquired in the Acquisition, which include five Brazilian phosphate rock mines, four phosphate chemical plants and a potash mine in Brazil. The segment also includes our legacy distribution business in South America, which consists of sales offices, crop nutrient blending and bagging facilities, port terminals and warehouses in Brazil and Paraguay. We also have a majority interest in Fospar S.A., which owns and operates a single superphosphate granulation plant and a deep-water crop nutrition port and throughput warehouse terminal facility in Brazil.</span></div></td></tr></table><span style="font-family:inherit;font-size:10pt;">Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, debt expenses, Streamsong Resort</span><span style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">®</sup></span> results of operations, and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other. As of January 1, 2019, certain selling, general and administrative costs that are not controllable by the business segments are no longer allocated to segments and are included within Corporate, Eliminations and Other. Our operating results for the years ended 2018 and 2017 have been recast to reflect this change.
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<div style="line-height:120%;padding-top:12px;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Accounting Estimates</span></div><div style="line-height:120%;padding-top:8px;text-align:justify;font-size:10pt;"><span style="font-family:inherit;font-size:10pt;">Preparation of the 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 </span></div><span style="font-family:inherit;font-size:10pt;">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 (“</span><span style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">ARO</span>”), and income tax-related accounts, including the valuation allowance against deferred income. Actual results could differ from these estimates
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CY2019 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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1.22
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1.22
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CY2018 us-gaap Antidilutive Securities Excluded From Computation Of Earnings Per Share Amount
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20000000.0 USD
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5700000 USD
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4100000 USD
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7700000 USD
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225000000.0 USD
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2600000 USD
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56200000 USD
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CY2018 us-gaap Effective Income Tax Rate Reconciliation At Federal Statutory Income Tax Rate
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0
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0
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0
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79600000 USD
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4800000 USD
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1000000.0 USD
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8600000 USD
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