Form 8-K MOSAIC CO For: Aug 01

August 1, 2022 4:48 PM

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): August 1, 2022

THE MOSAIC COMPANY

(Exact name of registrant as specified in its charter)

001-32327

20-1026454

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)


101 East Kennedy Blvd.		33602
Suite 2500
Tampa,	FL
(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):


☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act
Title of each class		Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share		MOS	NYSE

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2 of the Securities Exchange Act of 1934.
☐	Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨


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:

Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the text of The Mosaic Company’s (“Mosaic,” and Mosaic and its subsidiaries, individually or in any combination, “we,” “us” or “our”) announcement regarding its earnings and results of operations for the quarter ended June 30, 2022, as presented in a press release issued on August 1, 2022.

Furnished herewith as Exhibit 99.2 and incorporated by reference herein is certain performance data for the period ended June 30, 2022 to be published on Mosaic’s website.


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 following exhibits 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.


Exhibit No.						Description

99.1						Press release, dated August 1, 2022, of The Mosaic Company regarding its earnings and results of operations for the quarter ended June 30, 2022

99.2						Performance data for the period ended June 30, 2022

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: August 1 2022

By:

/s/ Mark J. Isaacson

Name:

Mark J. Isaacson

Title:

Senior Vice President, General Counsel

and Corporate Secretary

The Mosaic Company

101 E. Kennedy Blvd., Suite 2500

Tampa, FL 33602

www.mosaicco.com

FOR IMMEDIATE RELEASE

Investors

Paul Massoud

813-775-4260

paul.massoud@mosaicco.com

Media

William Barksdale

813-775-4208

william.barksdale@mosaicco.com

THE MOSAIC COMPANY REPORTS SECOND QUARTER 2022 RESULTS

•Second quarter net income of $1.0 billion, Adjusted EBITDA(1) of $2.0 billion

•Cash from Operations of $1.6 billion, Free Cash Flow(1) of $794 million

•Year-to-date capital return totaled $1.1 billion, including $1.0 billion of share repurchases

•Board of Directors approves a new $2.0 billion share repurchase authorization

TAMPA, FL, August 1, 2022 - The Mosaic Company (NYSE: MOS), reported net income of $1.0 billion, or $2.85 per diluted share, for the second quarter of 2022. Adjusted EPS(1) was $3.64 and Adjusted EBITDA(1) was $2.0 billion. Gross margin was $1.8 billion.

“Mosaic's second quarter results demonstrate the strength of the business,” said Joc O’Rourke, President and CEO. "We are expanding production to help meet global demand and returning significant capital to shareholders. We expect strong fundamentals will continue for the rest of the year and into 2023."

Highlights:

•Second quarter revenues were up 92 percent year-over-year to $5.4 billion. The gross margin rate in the quarter was 34 percent, up from 27 percent in second quarter of 2021.

•Adjusted EBITDA totaled $2.0 billion, up from the prior year period total of $829 million. The company generated cash flow from operations of $1.6 billion and free cash flow of $794 million(1).

•Potash operating earnings totaled $915 million, up from $49 million in the prior year period, and Adjusted EBITDA totaled $998 million, up from $285 million in the second quarter of 2021. Higher pricing was partially offset by higher input costs, royalties, and Canadian resource taxes.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.

•Phosphates operating earnings totaled $578 million, up from $283 million in the prior year period, and Adjusted EBITDA totaled $758 million, up from $408 million in the second quarter of 2021. Higher pricing more than offset lower volumes, which were impacted by a compressed North American spring application season and plant turnarounds during the quarter.

•Mosaic Fertilizantes operating earnings totaled $420 million and Adjusted EBITDA totaled $444 million in the second quarter of 2022. This compares to operating earnings of $170 million and Adjusted EBITDA of $203 million from the prior year period. Second quarter results reflect higher pricing and improved market positioning.

•The company remains committed to its capital allocation strategy:

•Mosaic has returned $1.1 billion to shareholders during the first half of 2022, including $1.0 billion of share repurchases, which represents 87% of free cash flow(1). Mosaic expects to return 100% of 2022 free cash flow(1), after debt reduction commitments are met, to shareholders through a combination of share repurchases and dividends. As of the end of the second quarter, $555 million remained on the current share repurchase authorization, and the company has continued to repurchase shares in July. Based on the company's outlook for continued strong free cash flow generation, Mosaic's Board of Directors approved a new authorization of $2.0 billion. This will go into effect following the exhaustion of the current authorization, which will likely occur during the third quarter.

•The company expects to complete its goal of reducing long-term debt by $1.0 billion later this year with the retirement of $550 million that matures in November. Mosaic has no plan to further reduce long-term debt.

•Total expected capital expenditures in 2022 remain unchanged at $1.3 billion. Growth investments reflect the optimization of the Esterhazy complex, a restart of the second mill at Colonsay, reserve additions for a mine extension at South Fort Meade, and other high-quality, opportunistic projects throughout the business.

Second Quarter Segment Results


Potash Results	Q2 2022	Q1 2022	Q2 2021
Sales Volumes million tonnes*	2.3	1.8	2.3
MOP Selling Price(2)	$678	$582	$243
Gross Margin (GAAP) per tonne	$403	$323	$93
Adjusted Gross Margin (non-GAAP) per tonne(1)	$403	$323	$100
Operating Earnings - millions	$915	$563	$49
Segment Adjusted EBITDA(1) - millions	$998	$651	$285

*Tonnes = finished product tonnes

Net sales in the Potash segment totaled $1.6 billion, up from $663 million one year ago, due to higher prices. Gross margin was $928 million compared to $217 million for the same period a year ago. Gross margin per tonne was $403 compared to $93 in the prior-year period.

Total potash production was 2.4 million tonnes, up from 2.1 million tonnes in the prior year period, reflecting the contribution from K3 and Colonsay. Sales volumes of 2.3 million tonnes were roughly in line with the prior year quarter as a result of the compressed application season in North America and rail delays experienced early in the quarter. Total potash production is expected to exceed recent historical levels for the remainder of 2022.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.

(2) Average MOP Selling Price (fob mine)

MOP cash costs were $78 per tonne, compared to $62 per tonne in the prior year period. Costs reflected the inclusion of production from Colonsay, higher natural gas costs at Belle Plaine, and higher price-related royalties and taxes.

Sales volumes in the third quarter are expected to be 1.9-2.1 million tonnes with realized MOP prices on an FOB basis $10-$20 per tonne higher than prices realized in the second quarter.


Phosphate Results	Q2 2022	Q1 2022	Q2 2021
Sales Volumes million tonnes*	1.7	1.7	2.0
DAP Selling Price(4)	$920	$785	$544
Gross Margin (GAAP) per tonne	$383	$318	$156
Adjusted Gross Margin (non-GAAP) per tonne(1)	$383	$318	$156
Operating Earnings - millions	$578	$493	$283
Segment Adjusted EBITDA(1) - millions	$758	$632	$408

*Tonnes = finished product tonnes

Net sales in the Phosphate segment were $1.8 billion, up from $1.2 billion in the prior year period, due to higher year-over-year prices, partially offset by lower volumes. Gross margin was $642 million, compared to $309 million for the same period a year ago, as improved pricing was partially offset by lower volumes and higher raw material costs. Gross margin per tonne was $383 compared to $156 in the prior-year period.

Production of finished phosphates totaled 1.6 million tonnes, down 10 percent year-over-year, and sales volumes totaled 1.7 million tonnes, down 15 percent year-over-year. Lower production was a result of plant turnarounds during the quarter and led to cash conversion costs of $86 per tonne, up from the year ago level of $68 per tonne.

Mosaic continues to benefit from its advantaged ammonia cost position. The price of ammonia realized in cost of goods sold increased to $591 per tonne, up $209 per tonne from the prior year period, but was well below the $1,350 per tonne average spot price in the quarter.

Sales volumes in the third quarter are expected to be 1.7-2.0 million tonnes. Recent published DAP prices have moderated down to levels that are consistent with Mosaic's expectations for the full third quarter average price.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.

(4)Average DAP Selling Price (fob plant)


Mosaic Fertilizantes Results	Q2 2022	Q1 2022	Q2 2021
Sales Volumes million tonnes*	2.3	1.8	2.3
Finished Product Selling Price	$974	$817	$442
Gross Margin (GAAP) per tonne	$194	$120	$78
Adjusted Gross Margin (non GAAP) per tonne(1)	$194	$130	$81
Operating Earnings - millions	$420	$187	$170
Segment Adjusted EBITDA(1) - millions	$444	$233	$203

*Tonnes = finished product tonnes

Net sales in the Mosaic Fertilizantes segment were $2.3 billion, up from $1.0 billion in the prior year period due to higher year-over-year prices, partially offset by lower volumes. Higher costs of goods sold reflect higher prices for purchased nitrogen and potash products for distribution and sulfur and ammonia for phosphate production.

Gross margin was $450 million, compared to $185 million for the same period a year ago, primarily as a result of improved pricing and transformation benefits, partially offset by higher raw material costs, inflationary pressures on production costs, and lower volumes. Gross margin per tonne was $194 in the second quarter, up from $78 in the prior year period.

Other

Selling, general, and administrative costs (SG&A) were $108 million, roughly in line with the year-ago period.

The effective tax rate during the quarter was 26.8 percent. The company expects an effective rate for full year 2022 in the mid-20 percent range under current tax laws and regulations.

Market Outlook

Tight grain and oilseed markets are expected to persist through the remainder of 2022 and into 2023. The war in Ukraine, high temperatures in North America and Europe, and developing drought conditions in parts of South America highlight the risk for reduced yields globally. This suggests that global stocks-to-use ratios, already at 20-year lows, will remain under pressure.

In North America, Brazil and China, domestic crop prices continue to justify nutrient application to drive higher yields, despite elevated input costs. In India, the government continues to indicate support for importers to ensure adequate domestic supply. Domestic inventories in India remain at historically low levels, but shipments have increased in recent weeks.

For both potash and phosphates, supply constraints remain. In potash, the shortfall in supply from Belarus will only be partially mitigated by increased production from other producers. In phosphates, China export restrictions appear likely to be extended through the remainder of the year and into 2023. Industry stripping margins have declined from their highs reached at the end of the first quarter, but are expected to remain well above their historical range for the rest of the year.

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.

(3)Average MAP selling price (Brazil production, delivered price to third party customers)

2022 Expectations and Key Assumptions

The Company provides the following modeling assumptions for the full year 2022:


Modeling Assumptions			Full Year 2022
Total Capital Expenditures			$1.3 billion
Depreciation, Depletion & Amortization			$870 - $890 million
Selling, General, and Administrative Expense			$420 - $450 million
Net Interest Expense			$140 - $150 million
Non-notable adjustments			$100 - $110 million
Effective tax rate			Mid 20’s %
Cash tax rate			Low 20's %

Sensitivities Table Using 2021 Cost Structure

The Company provides the following sensitivities to price and foreign exchange rates to help investors anticipate the potential impact of movements in these factors. These sensitivities are based on 2021 actual realized pricing and sales volumes.


Sensitivity	Full year Adj. EBITDA impact(1)	2021 Actual
Average MOP Price / tonne (fob mine)(6)	$10/mt price change = $64 million (5)	$285
Average DAP Price / tonne (fob plant)(6)	$10/mt price change = $94 million	$564
Average BRL / USD	0.10 change, unhedged = $10 million(7)	5.39

(1)See “Non-GAAP Financial Measures” for additional information and reconciliation.

(5) Includes impact of Canadian Resource Tax

(6) Approximately 20% of DAP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.; approximately 5% of the MOP price sensitivity impact is expected to be in the Mosaic Fertilizantes segment.

(7) The company hedged about 50 percent of the annual sensitivity. Over longer periods of time, inflation is expected to offset a portion of currency benefits.

About The Mosaic Company

The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.

Mosaic has posted prepared comments and related slides on its website, www.mosaicco.com/investors, concurrently with the posting of this release and performance data. In addition, the company will provide access to a fireside chat addressing questions on the quarter, current market conditions, and other topics on Tuesday, August 2, 2022, at 11 am Eastern. The fireside chat will be available both on the website and via telephone at the following number: 929-477-0336, Passcode: 795761, Conference ID: 9128369 . All earnings related material, including audio, will be available up to one year from the time of the earnings call.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may include, but are not limited to, statements about proposed or pending future transactions or strategic plans and other statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company’s management and are subject to significant risks and uncertainties. These risks and uncertainties include, but are not limited to: the economic impact and operating impacts of the coronavirus (Covid-19) pandemic, political and economic instability and changes in government policies in Brazil and other countries in which we have operations; the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; the effect of future product innovations or development of new technologies on demand for our products; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic’s international operations and those of joint ventures in which Mosaic participates, including the performance of the Wa’ad Al Shamal Phosphate Company (also known as MWSPC), the future success of current plans for MWSPC and any future changes in those plans; difficulties with realization of the benefits of our long term natural gas based pricing ammonia supply agreement with CF Industries, Inc., including the risk that the cost savings initially anticipated from the agreement may not be fully realized over its term or that the price of natural gas or ammonia during the term are at levels at which the pricing is disadvantageous to Mosaic; customer defaults; the effects of Mosaic’s decisions to exit business operations or locations; changes in government policy; changes in environmental and other governmental regulation, including expansion of the types and extent of water resources regulated under federal law, carbon taxes or other greenhouse gas regulation, implementation of numeric water quality standards for the discharge of nutrients into Florida waterways or efforts to reduce the flow of excess nutrients into the Mississippi River basin, the Gulf of Mexico or elsewhere; further developments in judicial or administrative proceedings, or complaints that Mosaic’s operations are adversely impacting nearby farms, business operations or properties; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals or increased financial assurance requirements; resolution of global tax audit activity; the effectiveness of Mosaic’s processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida, the Mississippi River basin, the Gulf Coast of the United States, Canada or Brazil, and including potential hurricanes, excess heat, cold, snow, rainfall or drought; actual costs of various items differing from management’s current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, Canadian resources taxes and royalties, or the costs of the MWSPC; reduction of Mosaic’s available cash and liquidity, and increased leverage, due to its use of cash and/or available debt capacity to fund financial assurance requirements and strategic investments; brine inflows at Mosaic’s potash mines; other accidents and disruptions involving Mosaic’s operations, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; and risks associated with cyber security, including reputational loss; as well as other risks and uncertainties reported from time to time in The Mosaic Company’s reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.

###

Non-GAAP Financial Measures

This press release includes the presentation and discussion of non-GAAP diluted net earnings per share guidance, or adjusted EPS, and adjusted EBITDA, adjusted gross margin referred to as non-GAAP financial measures and free cash flow. 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, or GAAP. Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. In addition, because non-GAAP measures 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 metrics, including adjusted EPS and adjusted EBITDA are calculated by excluding the impact of notable items from the GAAP measure. Notable items impact on gross margin and EBITDA is pretax. Notable items impact on diluted net earnings per share is calculated as the notable item amount plus income tax effect, based on expected annual effective tax rate, divided by diluted weighted average shares. Free cash flow is defined as net cash provided by operating activities less capital expenditures, and adjusted for changes in working capital financing. Management believes that these adjusted measures provide securities analysts, investors, management and 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 these adjusted measures in analyzing and assessing Mosaic’s overall performance and financial trends, for financial and operating decision-making, and to forecast and plan for future periods. These adjusted measures also assist our management in comparing our and our competitors' operating results. Reconciliations for current and historical periods beginning with the quarter ended September 30, 2020, for consolidated adjusted EPS and adjusted EBITDA, as well as segment adjusted EBITDA and adjusted gross margin per tonne are provided in the Selected Calendar Quarter Financial Information performance data for the related periods. This information is being furnished under Exhibit 99.2 of the Form 8-K and available on our website at www.mosaicco.com in the “Financial Information - Quarterly Earnings” section under the “Investors” tab.

For the three months ended June 30, 2022, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.79):


			Amount		Tax effect		EPS impact
Description	Segment	Line item	(in millions)		(in millions)		(per 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)

For the three months ended June 30, 2021, the company reported the following notable items which, combined, negatively impacted earnings per share by $(0.03):


			Amount		Tax effect		EPS impact
Description	Segment	Line item	(in millions)		(in millions)		(per share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	111	$	(27)	$	0.21
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	38		(10)		0.08
Closed and indefinitely idled facility costs	Phosphates	Other operating income (expense)	(11)		3		(0.02)
Closed and indefinitely idled facility costs	Potash	Other operating income (expense)	(4)		1		—
Accelerated depreciation	Potash	Cost of goods sold	(15)		4		(0.04)
Realized gain on RCRA Trust Securities	Phosphates	Other non-operating income (expense)	1		—		—
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		6		0.01
ARO Adjustment	Phosphates	Other operating income (expense)	(3)		1		—
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(6)		1		(0.01)
Esterhazy closure costs	Potash	Mine closure costs	(158)		43		(0.30)
Gain on sale of warehouse	Corporate and Other	Other operating income (expense)	20		(5)		0.04


Total Notable Items			$	(27)	$	17	$	(0.03)

Condensed Consolidated Statements of Earnings

(in millions, except per share amounts)



The Mosaic Company						(unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2022		2021		2022		2021
Net sales	$	5,373.1	$	2,800.7	$	9,295.4	$	5,097.8
Cost of goods sold	3,526.8		2,048.4		6,010.0		3,910.6
Gross margin	1,846.3		752.3		3,285.4		1,187.2
Selling, general and administrative expenses	108.2		107.6		240.6		209.3

Mine closure costs	—		158.1		—		158.1
Other operating expense	63.9		2.6		114.8		22.6
Operating earnings	1,674.2		484.0		2,930.0		797.2

Interest expense, net	(34.1)		(37.3)		(73.4)		(82.3)
Foreign currency transaction gain (loss)	(227.2)		111.1		83.5		65.3
Other income (expense)	(35.7)		1.4		(35.5)		4.4
Earnings from consolidated companies before income taxes	1,377.2		559.2		2,904.6		784.6
Provision for income taxes	369.3		115.9		741.7		175.6
Earnings from consolidated companies	1,007.9		443.3		2,162.9		609.0
Equity in net earnings (loss) of nonconsolidated companies	35.9		(4.5)		66.6		(12.0)
Net earnings including noncontrolling interests	1,043.8		438.8		2,229.5		597.0
Less: Net earnings attributable to noncontrolling interests	7.9		1.6		11.6		3.1
Net earnings attributable to Mosaic	$	1,035.9	$	437.2	$	2,217.9	$	593.9
Diluted net earnings per share attributable to Mosaic	$	2.85	$	1.14	$	6.05	$	1.55
Diluted weighted average number of shares outstanding	363.1		383.3		366.5		383.0

Condensed Consolidated Balance Sheets

(in millions, except per share amounts)


The Mosaic Company						(unaudited)


	June 30, 2022		December 31, 2021
Assets
Current assets:
Cash and cash equivalents	$	839.1	$	769.5
Receivables, net, including affiliate receivables of $898.6 and $445.0, respectively	2,251.9		1,531.9
Inventories	3,640.9		2,741.4

Other current assets	566.8		282.5
Total current assets	7,298.7		5,325.3
Property, plant and equipment, net of accumulated depreciation of $8,688.4 and $8,238.1, respectively	12,569.4		12,475.3
Investments in nonconsolidated companies	756.8		691.8
Goodwill	1,162.1		1,172.2
Deferred income taxes	818.2		997.1
Other assets	1,380.4		1,374.7
Total assets	$	23,985.6	$	22,036.4
Liabilities and Equity
Current liabilities:
Short-term debt	$	17.0	$	302.8
Current maturities of long-term debt	607.7		596.6
Structured accounts payable arrangements	777.7		743.7
Accounts payable	1,505.7		1,260.7
Accrued liabilities	2,723.9		1,883.6


Total current liabilities	5,632.0		4,787.4
Long-term debt, less current maturities	3,351.9		3,382.2
Deferred income taxes	1,075.6		1,016.2
Other noncurrent liabilities	2,017.1		2,102.1
Equity:
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of June 30, 2022 and December 31, 2021	—		—
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 391,869,304 shares issued and 352,052,452 shares outstanding as of June 30, 2022, 390,815,099 shares issued and 368,732,231 shares outstanding as of December 31, 2021	3.5		3.7
Capital in excess of par value	—		478.0
Retained earnings	13,634.9		12,014.2
Accumulated other comprehensive loss	(1,887.1)		(1,891.8)
Total Mosaic stockholders' equity	11,751.3		10,604.1
Noncontrolling interests	157.7		144.4
Total equity	11,909.0		10,748.5
Total liabilities and equity	$	23,985.6	$	22,036.4

Condensed Consolidated Statements of Cash Flows

(in millions, except per share amounts)



The Mosaic Company						(unaudited)


	Three months ended				Six months ended
	June 30,				June 30,
	2022		2021		2022		2021
Cash Flows from Operating Activities:
Net cash provided by operating activities	$	1,585.1	$	1,015.1	$	2,091.3	$	1,333.9
Cash Flows from Investing Activities:
Capital expenditures	(262.6)		(297.2)		(553.1)		(585.8)
Purchases of available-for-sale securities - restricted	(368.1)		(76.8)		(425.9)		(200.5)
Proceeds from sale of available-for-sale securities - restricted	363.3		75.3		415.2		186.1







Other	2.7		27.6		1.9		20.6
Net cash used in investing activities	(264.7)		(271.1)		(561.9)		(579.6)
Cash Flows from Financing Activities:
Payments of short-term debt	(27.6)		(25.0)		(119.3)		(25.0)
Proceeds from issuance of short-term debt	17.6		10.0		130.3		25.0
Payments of inventory financing arrangement	(698.8)		—		(1,250.4)		—
Proceeds from inventory financing arrangement	246.0		—		947.7		—
Payments of structured accounts payable arrangements	(308.2)		(181.7)		(770.7)		(342.7)
Proceeds from structured accounts payable arrangements	232.8		212.8		796.4		527.5


Collections of transferred receivables	236.6		102.1		683.5		188.7
Payments of transferred receivables	(389.0)		(160.6)		(764.6)		(160.6)
Payments of long-term debt	(14.5)		(14.2)		(28.6)		(128.7)

Repurchases of stock	(577.3)		—		(999.4)		—
Cash dividends paid	(53.9)		(28.6)		(94.5)		(47.5)

Other	5.1		3.1		13.4		2.9
Net cash (used in) provided by financing activities	(1,331.2)		(82.1)		(1,456.2)		39.6
Effect of exchange rate changes on cash	(33.2)		69.2		(2.1)		49.1
Net change in cash, cash equivalents and restricted cash	(44.0)		731.1		71.1		843.0
Cash, cash equivalents and restricted cash - beginning of period	901.4		706.3		786.3		594.4
Cash, cash equivalents and restricted cash - end of period	$	857.4	$	1,437.4	$	857.4	$	1,437.4


	Three months ended

	June 30, 2022		June 30, 2021
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited statements of cash flows:
Cash and cash equivalents	$	839.1	$	1,417.6
Restricted cash in other current assets	9.4		10.6
Restricted cash in other assets	8.9		9.2
Total cash, cash equivalents and restricted cash shown in the unaudited statements of cash flows	$	857.4	$	1,437.4

Condensed Consolidated Statements of Equity

(In millions, except per share amounts)


The Mosaic Company						(unaudited)


		Mosaic Shareholders
	Shares	Dollars
	Common Stock	Common Stock		Capital in Excess of Par Value		Retained Earnings		Accumulated Other Comprehensive (Loss)		Noncontrolling Interests		Total Equity
Balance as of March 31, 2022	362.0	$	3.6	$	56.6	$	13,196.5	$	(1,618.3)	$	152.4	$	11,790.8
Total comprehensive income (loss)	—	—		—		1,035.9		(268.8)		5.3		772.4
Stock option exercises	—	—		5.1		—		—		—		5.1
Vesting of restricted stock units	0.2	—		0.3		—		—		—		0.3
Stock based compensation	—	—		7.3		—		—		—		7.3
Share repurchases	(10.1)	(0.1)		(69.3)		(542.9)		—		—		(612.3)
Dividends ($0.15 per share)	—	—		—		(54.6)		—		—		(54.6)


Balance as of June 30, 2022	352.1	$	3.5	$	—	$	13,634.9	$	(1,887.1)	$	157.7	$	11,909.0

Balance as of December 31, 2021	368.7	$	3.7	$	478.0	$	12,014.2	$	(1,891.8)	$	144.4	$	10,748.5
Total comprehensive income (loss)	—	—		—		2,217.9		4.7		13.3		2,235.9
Stock option exercises	—	—		13.4		—		—		—		13.4
Vesting of restricted stock units	1.1	—		(19.2)		—		—		—		(19.2)
Stock based compensation	—	—		19.1		—		—		—		19.1
Share repurchases	(17.7)	(0.2)		(491.3)		(542.9)		—		—		(1,034.4)
Dividends ($0.15 per share)	—	—		—		(54.3)		—		—		(54.3)


Balance as of June 30, 2022	352.1	$	3.5	$	—	$	13,634.9	$	(1,887.1)	$	157.7	$	11,909.0

Reconciliation of Non-GAAP Financial Measures

Earnings Per Share Calculation


	Three months ended June 30,				Six months ended June 30,
	2022		2021		2022		2021
Net income attributable to Mosaic	$	1,035.9	$	437.2	$	2,217.9	$	593.9
Basic weighted average number of shares outstanding	359.5		379.8		362.8		379.5
Dilutive impact of share-based awards	3.6		3.5		3.7		3.5
Diluted weighted average number of shares outstanding	363.1		383.3		366.5		383.0
Basic net income per share attributable to Mosaic	$	2.88	$	1.15	$	6.11	$	1.56
Diluted net income per share attributable to Mosaic	$	2.85	$	1.14	$	6.05	$	1.55
Notable items impact on net income (loss) per share attributable to Mosaic	0.79		0.03		0.01		0.19
Adjusted diluted net income per share attributable to Mosaic	$	3.64	$	1.17	$	6.06	$	1.74

Free Cash Flow


	Three months ended June 30,
	2022
Net cash provided by operating activities	$	1,585
Capital expenditures	(263)
Working capital financing(a)	(528)
Free cash flow	$	794

(a) Includes net proceeds (payments) from inventory financing arrangements and structured accounts payable arrangements.

Adjusted EBITDA


Consolidated Earnings (in millions)	Three months ended June 30,
	2022		2021
Consolidated net earnings attributable to Mosaic	$	1,036	$	437
Less: Consolidated interest expense, net	(34)		(37)
Plus: Consolidated depreciation, depletion and amortization	245		204
Plus: Accretion expense	20		19
Plus: Share-based compensation (income) expense	(1)		4
Plus: Consolidated provision for (benefit from) income taxes	369		116
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends	36		(4)
Plus: Notable items	361		8
Adjusted EBITDA	$	2,028	$	829


	Three months ended
	June 30,		March 31,		June 30,
Potash Earnings (in millions)	2022		2022		2021
Operating Earnings	$	915	$	563	$	49
Plus: Depreciation, Depletion and Amortization	81		77		70
Plus: Accretion Expense	2		2		4
Plus: Foreign Exchange Gain (Loss)	(23)		17		28

Plus: Notable Items	23		(8)		134
Adjusted EBITDA	$	998	$	651	$	285


	Three months ended
	June 30,		March 31,		June 30,
Phosphates Earnings (in millions)	2022		2022		2021
Operating Earnings	$	578	$	493	$	283
Plus: Depreciation, Depletion and Amortization	133		120		106
Plus: Accretion Expense	14		13		10
Plus: Foreign Exchange Gain (Loss)	—		(7)		8
Plus: Other Income (Expense)	(24)		—		2
Less: Earnings (Loss) from Consolidated Noncontrolling Interests	9		4		2
Plus: Notable Items	66		17		1
Adjusted EBITDA	$	758	$	632	$	408


	Three months ended
	June 30,		March 31,		June 30,
Mosaic Fertilizantes (in millions)	2022		2022		2021
Operating Earnings	$	420	$	187	$	170
Plus: Depreciation, Depletion and Amortization	27		25		24
Plus: Accretion Expense	4		4		4
Plus: Foreign Exchange Gain (Loss)	(83)		119		34
Plus: Other Income	(1)		(1)		(2)
Plus: Notable Items	(1)		—		(1)
Less: Earnings (Loss) from Consolidated Noncontrolling Interests	76		(101)		(28)
Adjusted EBITDA	$	444	$	233	$	203


	Three months ended
Potash Gross Margin (per tonne)	June 30,		March 31,		June 30,
	2022		2022		2021
Gross margin / tonne	$	403	$	323	$	93
Notable items in gross margin / tonne	—		—		7
Adjusted gross margin / tonne	$	403	$	323	$	100

	Three months ended
Phosphate Gross Margin (per tonne)	June 30,		March 31,		June 30,
	2022		2022		2021
Gross margin / tonne	$	383	$	318	$	156
Notable items in gross margin / tonne	—		—		—
Adjusted gross margin / tonne	$	383	$	318	$	156

	Three months ended
Mosaic Fertilizantes Gross Margin (per tonne)	June 30,		March 31,		June 30,
	2022		2022		2021
Gross margin / tonne	$	194	$	120	$	78
Notable items in gross margin / tonne	—		10		3
Adjusted gross margin / tonne	$	194	$	130	$	81

Exhibit 99.2

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)


	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022
Consolidated data (in millions, except per share)
Diluted net earnings (loss) per share	$	(0.02)		$	2.17		$	0.41		$	1.14		$	0.97		$	1.76		$	3.19		$	2.85
Notable items impact on earnings per share(a)	(0.25)			1.60			(0.16)			(0.03)			(0.38)			(0.19)			0.78			(0.79)
Adjusted diluted net earnings per share(a)	$	0.23		$	0.57		$	0.57		$	1.17		$	1.35		$	1.95		$	2.41		$	3.64
Diluted weighted average # of shares outstanding	379.1			382.3			382.8			383.3			383.2			377.5			370.1			363.1

Total Net Sales	$	2,382		$	2,458		$	2,297		$	2,801		$	3,419		$	3,841		$	3,922		$	5,373
Cost of goods sold	2,027			2,046			1,862			2,049			2,554			2,693			2,483			3,526
Gross Margin	$	355		$	412		$	435		$	752		$	865		$	1,148		$	1,439		$	1,847
SG&A	98			111			102			108			98			123			133			108
Other operating (income) expense(p)	159			6			20			160			65			55			50			65
Operating earnings	$	98		$	295		$	313		$	484		$	702		$	970		$	1,256		$	1,674
Interest expense, net	(43)			(47)			(45)			(37)			(48)			(39)			(40)			(34)
Consolidated foreign currency gain/(loss)	6			110			(46)			111			(100)			(44)			311			(227)
Earnings from consolidated companies before income taxes	66			359			225			559			554			886			1,527			1,377
Provision for (benefit from) income taxes	38			(480)			60			116			177			245			372			369
Earnings (loss) from consolidated companies	$	28		$	839		$	165		$	443		$	377		$	641		$	1,155		$	1,008
Equity in net earnings (loss) of nonconsolidated companies	(32)			(11)			(7)			(4)			(1)			20			31			36
Less: Net earnings (loss) attributable to noncontrolling interests	2			—			1			2			4			(4)			4			8
Net earnings (loss) attributable to Mosaic	$	(6)		$	828		$	157		$	437		$	372		$	665		$	1,182		$	1,036
After tax Notable items included in earnings	$	(93)		$	610		$	(63)		$	(10)		$	(145)		$	(73)		$	288		$	(286)

Gross Margin Rate	15		%	17		%	19		%	27		%	25		%	30		%	37		%	34		%

Effective Tax Rate (including discrete tax)	58		%	(134)		%	27		%	21		%	32		%	28		%	24		%	27		%
Discrete Tax benefit (expense)	$	(2)		$	580		$	(4)		$	49		$	(19)		$	(26)		$	9		$	(14)

Depreciation, Depletion and Amortization	$	206		$	208		$	209		$	204		$	186		$	214		$	226		$	245
Accretion Expense	$	17		$	17		$	17		$	19		$	18		$	19		$	19		$	20
Share-Based Compensation Expense	$	7		$	12		$	15		$	4		$	5		$	6		$	16		$	(1)
Notable Items	$	101		$	(134)		$	50		$	8		$	163		$	59		$	(374)		$	361
Adjusted EBITDA(b)	$	438		$	508		$	560		$	829		$	969		$	1,227		$	1,451		$	2,028

Net cash provided by (used in) operating activities	$	341		$	238		$	319		$	1,015		$	423		$	431		$	506		$	1,585
Cash paid for interest (net of amount capitalized)	8			90			1			88			18			82			4			80
Cash paid for income taxes (net of refunds)	11			21			83			36			54			36			259			233
Net cash used in investing activities	$	(267)		$	(395)		$	(309)		$	(271)		$	(351)		$	(392)		$	(297)		$	(265)
Capital expenditures	(265)			(385)			(289)			(297)			(340)			(363)			(291)			(263)
Net cash (used in) provided by financing activities	$	(219)		$	(233)		$	122		$	(82)		$	(618)		$	(107)		$	(125)		$	(1,331)
Cash dividends paid	(19)			(19)			(19)			(29)			(28)			(28)			(41)			(54)
Effect of exchange rate changes on cash	$	(2)		$	39		$	(20)		$	69		$	(32)		$	(5)		$	31		$	(33)
Net change in cash and cash equivalents	$	(147)		$	(351)		$	112		$	731		$	(579)		$	(72)		$	115		$	(44)

Short-term debt	$	216		$	—		$	15		$	—		$	—		$	303		$	481		$	17
Long-term debt (including current portion)	4,578			4,578			4,470			4,463			3,995			3,979			3,977			3,960
Cash & cash equivalents	923			574			692			1,418			843			770			882			839
Net debt	$	3,871		$	4,004		$	3,793		$	3,045		$	3,152		$	3,512		$	3,576		$	3,138

Segment Contributions (in millions)
Phosphate	$	745		$	990		$	1,001		$	1,175		$	1,281		$	1,466		$	1,496		$	1,801
Potash	464			559			477			663			589			897			1,060			1,580
Mosaic Fertilizantes	1,140			823			764			1,036			1,755			1,535			1,488			2,260
Corporate and Other(c)	33			86			55			(73)			(206)			(57)			(122)			(268)
Total net sales	$	2,382		$	2,458		$	2,297		$	2,801		$	3,419		$	3,841		$	3,922		$	5,373

Phosphate	$	(115)		$	134		$	153		$	283		$	326		$	418		$	493		$	578
Potash	87			95			125			49			220			443			563			915
Mosaic Fertilizantes	144			97			90			170			290			195			187			420
Corporate and Other(c)	(18)			(31)			(55)			(18)			(134)			(86)			13			(239)
Consolidated operating earnings	$	98		$	295		$	313		$	484		$	702		$	970		$	1,256		$	1,674



Phosphate(d)	2,064	2,316	2,062	1,982	1,836	1,813	1,661	1,675
Potash(d)	2,264	2,675	1,980	2,326	1,808	2,072	1,792	2,304
Mosaic Fertilizantes	3,588	2,341	2,064	2,341	3,350	2,347	1,822	2,320
Corporate and Other	648	629	475	427	292	432	370	533
Total finished product tonnes sold ('000 tonnes)	8,564	7,961	6,581	7,076	7,286	6,664	5,645	6,832
Sales of Performance Products ('000 tonnes)(e)	1,094	1,267	1,023	917	1,132	1,077	711	741

The Mosaic Company - Phosphate Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	745		$	990		$	1,001		$	1,175		$	1,281		$	1,466		$	1,496		$	1,801
Cost of Goods Sold	723			821			828			866			917			1,006			968			1,159
Gross Margin	$	22		$	169		$	173		$	309		$	364		$	460		$	528		$	642
Notable Items Included in Gross Margin	—			—			—			—			(17)			(9)			—			—
Adjusted Gross Margin(b)	$	22		$	169		$	173		$	309		$	381		$	469		$	528		$	642

SG&A	12			7			10			10			7			15			8			10
Other operating (income) expense	125			28			10			16			31			27			27			54

Operating Earnings	$	(115)		$	134		$	153		$	283		$	326		$	418		$	493		$	578
Plus: Depreciation, Depletion and Amortization	108			107			102			106			106			115			120			133
Plus: Accretion Expense	12			12			12			10			13			13			13			14
Plus: Foreign Exchange Gain (Loss)	1			(1)			6			8			6			(11)			(7)			—
Plus: Other Income (Expense)	4			2			5			2			1			—			—			(24)
Less: Earnings (loss) from Consolidated Noncontrolling Interests	2			2			3			2			4			(3)			4			9
Plus: Notables Items	110			14			(4)			1			31			33			17			66
Adjusted EBITDA(b)	$	118		$	266		$	271		$	408		$	479		$	571		$	632		$	758

Capital expenditures	$	115		$	163		$	153		$	150		$	161		$	187		$	148		$	157
Gross Margin $ / tonne of finished product	$	11		$	73		$	84		$	156		$	198		$	254		$	318		$	383
Adjusted Gross Margin $ / tonne of finished product	$	11		$	73		$	84		$	156		$	208		$	259		$	318		$	383
Gross margin as a percent of sales	3		%	17		%	17		%	26		%	28		%	31		%	35		%	36		%

Freight included in finished goods (in millions)	$	85		$	109		$	97		$	103		$	96		$	103		$	90		$	94
Idle/Turnaround costs (excluding notable items)	$	25		$	15		$	41		$	38		$	33		$	25		$	31		$	79

Operating Data
Sales volumes ('000 tonnes)(d)
DAP/MAP	1,134			1,304			1,210			880			907			907			917			814
Performance & other products(f)	822			877			724			971			812			813			659			780
Other products(i)	108			135			128			131			117			93			85			81
Total Finished Product(d)	2,064			2,316			2,062			1,982			1,836			1,813			1,661			1,675

DAP selling price (fob plant)(r)	$	307		$	363		$	426		$	544		$	605		$	676		$	785		$	920
Average finished product selling price (destination)(g)	$	354		$	422		$	477		$	580		$	681		$	758		$	877		$	1,048

Production Volumes ('000 tonnes)
Total tonnes produced(h)	2,038			2,144			1,911			1,827			1,738			1,857			1,745			1,636
Operating Rate	82		%	86		%	77		%	73		%	70		%	75		%	70		%	66		%

Raw Materials
Ammonia used in production	$	311		$	319		$	281		$	256		$	255		$	287		$	258		$	236
% manufactured ammonia used in production	23		%	31		%	23		%	29		%	20		%	20		%	34		%	22		%
Sulfur used in production	$	907		$	946		$	841		$	824		$	792		$	848		$	818		$	764
% prilled sulfur used in production	14		%	19		%	27		%	18		%	21		%	17		%	11		%	5		%

Realized costs ($/tonne)
Ammonia (tonne)(j)	$	273		$	277		$	316		$	382		$	424		$	463		$	532		$	591
Sulfur (long ton)(k)	$	86		$	93		$	119		$	172		$	214		$	229		$	281		$	385
Blended rock	$	60		$	61		$	61		$	60		$	59		$	64		$	61		$	64

Phosphate cash conversion costs, production / tonne(s)	$	63		$	63		$	63		$	68		$	68		$	71		$	76		$	86
Cash costs of U.S. mined rock/production tonne(t)	$	39		$	40		$	36		$	37		$	41		$	44		$	50		$	46

ARO cash spending (in millions)	$	28		$	29		$	32		$	33		$	26		$	26		$	33		$	28

MWSPC equity earnings (loss)	$	(34)		$	(11)		$	(8)		$	(7)		$	(1)		$	20		$	31		$	34


MWSPC total sales tonnes (DAP/MAP/NPK)	487		565		612		360		486		653		592		413

Miski Mayo external sales revenue	$	7	$	7	$	15	$	14	$	17	$	18	$	21	$	21

The Mosaic Company - Potash Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	464		$	559		$	477		$	663		$	589		$	897		$	1,060		$	1,580
Cost of Goods Sold	356			439			337			446			353			433			481			652
Gross Margin	$	108		$	120		$	140		$	217		$	236		$	464		$	579		$	928
Notable Items Included in Gross Margin	(19)			(16)			(22)			(15)			—			—			—			—
Adjusted Gross Margin(b)	$	127		$	136		$	162		$	232		$	236		$	464		$	579		$	928

SG&A	6			8			7			8			8			11			7			8
Other operating (income) expense(p)	15			17			8			160			8			10			9			5

Operating Earnings	$	87		$	95		$	125		$	49		$	220		$	443		$	563		$	915
Plus: Depreciation, Depletion and Amortization	69			72			80			70			50			68			77			81
Plus: Accretion Expense	2			2			2			4			2			2			2			2
Plus: Foreign Exchange Gain (Loss)	34			77			15			28			(38)			3			17			(23)
Plus: Other Income (Expense)	1			—			—			—			—			—			—			—
Plus: Notable Items	(24)			(67)			(10)			134			38			1			(8)			23
Adjusted EBITDA(b)	$	169		$	179		$	212		$	285		$	272		$	517		$	651		$	998

Capital expenditures	$	119		$	149		$	97		$	98		$	123		$	92		$	65		$	67
Gross Margin $ / tonne of finished product	$	48		$	45		$	71		$	93		$	131		$	224		$	323		$	403
Adjusted Gross Margin $ / tonne of finished product	$	56		$	51		$	82		$	100		$	131		$	224		$	323		$	403
Gross margin as a percent of sales	23		%	21		%	29		%	33		%	40		%	52		%	55		%	59		%

Supplemental Cost Information
Canadian resource taxes	$	26		$	36		$	35		$	54		$	57		$	113		$	157		$	274
Royalties	$	8		$	9		$	9		$	10		$	8		$	15		$	27		$	32
Freight(l)	$	73		$	81		$	78		$	99		$	60		$	65		$	70		$	76
Idle/Turnaround costs (excluding notable items)	$	15		$	27		$	2		$	13		$	36		$	11		$	15		$	9

Operating Data
Sales volumes ('000 tonnes)(d)
MOP	2,030			2,435			1,747			2,064			1,547			1,870			1,532			2,045
Performance & other products(m)	223			228			221			252			202			187			243			245
Other products(i)	11			12			12			10			59			15			17			14
Total Finished Product(d)	2,264			2,675			1,980			2,326			1,808			2,072			1,792			2,304

Crop Nutrients North America	837			942			876			1,117			642			610			618			727
Crop Nutrients International	1,327			1,612			967			1,061			1,067			1,301			1,020			1,415
Non-Agricultural	100			121			137			148			99			161			154			162
Total Finished Product(d)	2,264			2,675			1,980			2,326			1,808			2,072			1,792			2,304

MOP selling price (fob mine)(u)	$	170		$	177		$	200		$	243		$	290		$	414		$	582		$	678
Average finished product selling price (destination)(g)	$	205		$	209		$	241		$	285		$	326		$	433		$	591		$	686

Production Volumes ('000 tonnes)
Production Volume	2,111			2,056			2,285			2,131			1,580			2,208			2,200			2,436
Operating Rate	87		%	85		%	94		%	88		%	65		%	81		%	80		%	87		%

MOP cash costs of production including brine / production tonne(n)	$	52		$	59		$	64		$	62		$	72		$	71		$	81		$	78
ARO cash spending (in millions)	$	2		$	3		$	1		$	3		$	7		$	15		$	18		$	13



Average CAD / USD	$	1.333	$	1.304	$	1.266	$	1.229	$	1.259	$	1.261	$	1.267	$	1.276

The Mosaic Company - Mosaic Fertilizantes Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q3 2020			Q4 2020			Q1 2021			Q2 2021			Q3 2021			Q4 2021			Q1 2022			Q2 2022
Net Sales and Gross Margin (in millions, except per tonne)
Segment income statement
Net Sales	$	1,140		$	823		$	764		$	1,036		$	1,755		$	1,535		$	1,488		$	2,260
Cost of Goods Sold	963			747			661			852			1,423			1,313			1,269			1,810
Gross Margin	$	177		$	76		$	103		$	184		$	332		$	222		$	219		$	450
Notable Items Included in Gross Margin	—			—			—			(6)			3			23			(18)			—
Adjusted Gross Margin(b)	$	177		$	76		$	103		$	190		$	329		$	199		$	237		$	450

SG&A	17			21			18			18			20			24			21			27
Other operating (income) expense	16			(42)			(5)			(4)			22			3			11			3

Operating Earnings	$	144		$	97		$	90		$	170		$	290		$	195		$	187		$	420
Plus: Depreciation, Depletion and Amortization	25			25			23			24			26			28			25			27
Plus: Accretion Expense	3			3			3			4			3			4			4			4
Plus: Foreign Exchange Gain (Loss)	(3)			9			(33)			34			(40)			(31)			119			(83)
Plus: Other Income (Expense)	(1)			(1)			(1)			(2)			(2)			(1)			(1)			(1)
Less: Earnings from Consolidated Noncontrolling Interests	1			1			—			(1)			—			—			—			(1)
Plus: Notable Items	14			(17)			22			(28)			40			2			(101)			76
Adjusted EBITDA(b)	$	181		$	115		$	104		$	203		$	317		$	197		$	233		$	444

Capital expenditures	$	28		$	72		$	39		$	44		$	52		$	81		$	75		$	39
Gross Margin $ / tonne of finished product	$	49		$	32		$	50		$	78		$	99		$	95		$	120		$	194
Adjusted Gross Margin $ / tonne of finished product	$	49		$	32		$	50		$	81		$	98		$	85		$	130		$	194
Gross margin as a percent of sales	16		%	9		%	13		%	18		%	19		%	14		%	15		%	20		%
Idle/Turnaround costs (excluding notable items)	$	7		$	16		$	5		$	9		$	16		$	25		$	9		30

Operating Data
Sales volumes ('000 tonnes)
Phosphate produced in Brazil	1,343			610			536			686			722			599			737			638
Potash produced in Brazil	85			74			63			66			56			59			46			46
Purchased nutrients for distribution(q)	2,160			1,657			1,465			1,589			2,572			1,689			1,039			1,636
Total Finished Product	3,588			2,341			2,064			2,341			3,350			2,347			1,822			2,320

Sales of Performance Products ('000 tonnes)(e)	518			357			176			299			584			375			155			290

Brazil MAP price (Brazil production delivered price to third party)	$	366		$	384		$	421		$	589		$	622		$	765		$	882		$	1,021
Average finished product selling price (destination)(g)	$	318		$	352		$	370		$	442		$	524		$	654		$	817		$	974

Production Volumes ('000 tonnes)
MAP	284			219			235			218			210			233			261			266
TSP	135			99			107			127			130			102			131			129
SSP	335			274			301			287			350			349			312			275
DCP	125			126			106			117			130			124			127			85
NPK	37			34			54			52			65			55			64			55
Total phosphate tonnes produced	916			752			803			801			885			863			895			810
MOP	109			110			82			92			97			97			94			38

Phosphate operating rate	94		%	77		%	82		%	82		%	91		%	89		%	92		%	83		%
Potash operating rate	84		%	84		%	63		%	71		%	75		%	74		%	72		%	29		%

Realized Costs ($/tonne)
Ammonia/tonne	$	329		$	338		$	381		$	527		$	640		$	775		$	1,145		$	1,396


Sulfur (long ton)	$	107	$	113	$	124	$	177	$	222	$	251	$	337	$	384
Blended rock	$	65	$	71	$	73	$	80	$	81	$	83	$	105	$	102

Purchases ('000 tonnes)
DAP/MAP from Mosaic	82		109		64		96		62		89		102		102
MicroEssentials® from Mosaic	373		189		203		418		344		243		248		448
Potash from Mosaic/Canpotex	622		383		489		473		1,023		550		398		663

Phosphate cash conversion costs in BRL, production / tonne(s)	R$294		R$363		R$334		R$359		R$347		R$388		R$403		R$506
Potash cash conversion costs in BRL, production / tonne	R$810		R$835		R$879		R$1,076		R$986		R$1,059		R$1,296		R$2,285
Mined rock costs in BRL, cash produced / tonne	R$324		R$375		R$392		R$409		R$430		R$456		R$557		R$500
ARO cash spending (in millions)	$	4.4	$	6	$	5	$	5	$	5	$	5	$	2	$	4

Average BRL / USD	$	5.373	$	5.403	$	5.470	$	5.301	$	5.225	$	5.579	$	5.235	$	4.917

The Mosaic Company - Corporate and Other Segment

Selected Calendar Quarter Financial Information

(Unaudited)


	Q3 2020		Q4 2020		Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022
Net Sales and Gross Margin (in millions)
Segment income statement
Net Sales	$	33	$	86	$	55	$	(73)	$	(206)	$	(57)	$	(122)	$	(268)
Cost of Goods Sold	(15)		39		36		(115)		(139)		(59)		(235)		(95)
Gross Margin (Loss)	$	48	$	47	$	19	$	42	$	(67)	$	2	$	113	$	(173)
Notable items Included in Gross Margin	25		39		(8)		38		(26)		(18)		100		(62)
Adjusted Gross Margin (Loss)(b)	$	23	$	8	$	27	$	4	$	(41)	$	20	$	13	$	(111)

SG&A	63		75		67		72		63		73		97		63
Other operating (income) expense	3		3		7		(12)		4		15		3		3

Operating Earnings (Loss)	$	(18)	$	(31)	$	(55)	$	(18)	$	(134)	$	(86)	$	13	$	(239)
Plus: Depreciation, Depletion and Amortization	4		4		4		4		4		3		4		4
Plus: Share-Based Compensation Expense	7		12		15		4		5		6		16		(1)
Plus: Foreign Exchange Gain (Loss)	(26)		25		(34)		41		(28)		(4)		182		(121)
Plus: Other Income (Expense)	—		—		—		1		—		—		2		(11)
Less: Earnings (Loss) from Consolidated Noncontrolling Interests	(2)		(2)		(1)		—		—		—		—		—
Plus: Notable Items	1		(64)		42		(99)		54		23		(282)		196
Adjusted EBITDA(b)	$	(30)	$	(52)	$	(27)	$	(67)	$	(99)	$	(58)	$	(65)	$	(172)

Elimination of profit in inventory included in COGS	$	14	$	(2)	$	(3)	$	(39)	$	(60)	$	(29)	$	(76)	$	(180)
Unrealized gain (loss) on derivatives included in COGS	$	24	$	39	$	(8)	$	38	$	(26)	$	(17)	$	100	$	(59)

Operating Data
Sales volumes ('000 tonnes)	648		629		475		427		292		432		370		533
Sales of Performance Products ('000 tonnes)	21		30		29		28		13		12		1		14

Average finished product selling price (destination)(g)	$	310	$	317	$	336	$	421	$	466	$	539	$	597	$	732

Purchases ('000 tonnes)
DAP/MAP from Mosaic	—		—		—		—		—		—		—		—
MicroEssentials® from Mosaic	11		12		—		5		1		4		15		—
Potash from Mosaic/Canpotex	253		363		400		163		218		304		220		471

The Mosaic Company

Selected Calendar Quarter Financial Information

(Unaudited)

Notable Items


Q2 2022
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (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(v) (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(v) (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)


Q3 2021
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(100)	$	25	$	(0.19)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(26)		6		(0.05)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(11)		3		(0.03)
Pre-acquisition reserve adjustment	Mosaic Fertilizantes	Other operating income (expense)	(3)		1		(0.01)
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(19)		(0.05)
ARO Adjustment	Phosphate	Other operating income (expense)	(13)		3		(0.03)
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	3		(1)		0.01
Hurricane Ida recovery	Phosphate	Cost of goods sold/Other income (expense)	(18)		5		(0.03)
Total Notable Items			$	(168)	$	23	$	(0.38)


Q2 2021
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	111	$	(27)	$	0.21
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	38		(10)		0.08
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(11)		3		(0.02)
Closed and indefinitely idled facility costs	Potash	Other operating income (expense)	(4)		1		—
Accelerated depreciation	Potash	Cost of goods sold	(15)		4		(0.04)
Realized gain on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	1		—		—
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		6		0.01
ARO Adjustment	Phosphate	Other operating income (expense)	(3)		1		—
FX functional currency	Mosaic Fertilizantes	Cost of goods sold	(6)		1		(0.01)
Esterhazy closure costs	Potash	Restructuring	(158)		43		(0.30)
Gain on sale of warehouse	Corporate and Other	Other operating income (expense)	20		(5)		0.04
Total Notable Items			$	(27)	$	17	$	(0.03)


Q1 2021
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	(46)	$	10	$	(0.09)
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	(8)		2		(0.02)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(10)		3		(0.02)
Closed and indefinitely idled facility costs	Potash	Other operating income (expense)	(5)		2		(0.01)
Accelerated depreciation	Potash	Cost of goods sold	(22)		5		(0.04)
Pre-acquisition reserve adjustment	Mosaic Fertilizantes	Other operating income (expense)	11		(3)		0.02
Realized gain on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	3		(1)		0.01
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(4)		(0.01)
Total Notable Items			$	(77)	$	14	$	(0.16)


Q4 2020
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	110	$	(26)	$	0.22
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	39		(9)		0.08
Pre-acquisition contingencies	Mosaic Fertilizantes	Other operating income (expense)	8		(2)		0.02
Accelerated depreciation	Potash	Cost of goods sold	(16)		4		(0.03)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(10)		2		(0.03)
Closed and indefinitely idled facility costs	Potash	Other operating income (expense)	(7)		2		(0.01)
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		580		1.52
ARO adjustment	Phosphate	Other operating income (expense)	(5)		1		(0.01)
Tax Rate Adjustment	Consolidated	(Provision for) benefit from income taxes	—		(59)		(0.15)
ARO Adjustment	Potash	Other operating income (expense)	(3)		1		(0.01)
Total Notable Items			$	116	$	494	$	1.60


Q3 2020
Description	Segment	Line Item	Amount (in millions)		Tax Effect(v) (in millions)		EPS Impact (per basic share)

Foreign currency transaction gain (loss)	Consolidated	Foreign currency transaction gain (loss)	$	6	$	(2)	$	0.01
Unrealized gain (loss) on derivatives	Corporate and Other	Cost of goods sold	25		(10)		0.03
Legal contingencies	Mosaic Fertilizantes	Other operating income (expense)	(8)		3		(0.01)
Accelerated depreciation	Potash	Cost of goods sold	(19)		7		(0.03)
Closed and indefinitely idled facility costs	Phosphate	Other operating income (expense)	(11)		4		(0.02)
Closed and indefinitely idled facility costs	Potash	Other operating income (expense)	(6)		2		(0.01)
Realized gain on RCRA Trust Securities	Phosphate	Other non-operating income (expense)	6		(2)		0.01
Discrete tax items	Consolidated	(Provision for) benefit from income taxes	—		(2)		(0.01)
ARO adjustment	Phosphate	Other operating income (expense)	(73)		28		(0.12)
Tax Rate Adjustment	Consolidated	(Provision for) benefit from income taxes	—		(14)		(0.04)
ARO adjustment	Mosaic Fertilizantes	Other operating income (expense)	(3)		1		—
New Wales environmental reserve	Phosphate	Other operating income (expense)	(35)		14		(0.05)
Integration costs	Consolidated	Other operating income (expense)	(7)		3		(0.01)
Total Notable Items			$	(125)	$	32	$	(0.25)

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 $158 million related to the closure of the Esterhazy K1 and K2 mine shafts in Q2 2021.

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

(r)Includes intersegment sales.

(s)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.

(t)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.

(u)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)	Q3 2020		Q4 2020		Q1 2021		Q2 2021		Q3 2021		Q4 2021		Q1 2022		Q2 2022
Consolidated Net Income (Loss)	$	(6)	$	828	$	157	$	437	$	372	$	665	$	1,182	$	1,036
Less: Consolidated Interest Expense, Net	(43)		(47)		(45)		(37)		(48)		(39)		(40)		(34)
Plus: Consolidated Depreciation, Depletion & Amortization	206		208		209		204		186		214		226		245
Plus: Accretion Expense	17		15		17		19		17		19		20		20
Plus: Share-Based Compensation Expense (Benefit)	7		12		15		4		5		6		16		(1)
Plus: Consolidated Provision for (Benefit from) Income Taxes	38		(480)		60		116		177		245		372		369
Less: Equity in net earnings (loss) of nonconsolidated companies, net of dividends	(32)		(12)		(7)		(4)		(1)		20		31		36
Plus: Notable Items	101		(134)		50		8		163		59		(374)		361
Consolidated Adjusted EBITDA	$	438	$	508	$	560	$	829	$	969	$	1,227	$	1,451	$	2,028

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) 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.

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Form 8-K MOSAIC CO For: Aug 01

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