10-Q 1 mos-20220331.htm 10-Q mos-20220331
MOSAIC CO0001285785false2022Q112/31361,993,3128,579.68,,000,00015,000,0000.010.011,000,000,0001,000,000,000391,681,516390,815,099362,008,984368,732,2316.410.2Recently Issued Accounting GuidanceIn June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance which revises the accounting for credit losses on financial instruments within its scope. The standard introduces an approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade and other receivables, and modifies the impairment model for available-for-sale (“AFS”) debt securities. The guidance amends the current other-than-temporary impairment model for AFS debt securities and provides that any impairment related to credit losses be recognized as an allowance (which could be reversed) rather than as a permanent reduction in the amortized cost basis of that security. We adopted this standard prospectively on January 1, 2020 and revised our accounting policies and procedures to reflect the requirements of this standard related to our trade receivables and AFS debt securities. Based on the composition of our trade receivables, current market conditions, and historical and expected credit loss activity, adoption of this standard did not significantly impact our consolidated results of operations or financial condition.1.2zero0.0 million74.7Esterhazy Closure CostsDue to increased brine inflows, on June 4, 2021, the Company made the decision to accelerate the timing of the shutdown of our K1 and K2 mine shafts at our Esterhazy, Saskatchewan potash mine. Closing the K1 and K2 shafts are key pieces of the transition to the K3 shaft, but the timeline for the closure was accelerated by approximately nine months. In the second quarter of 2021, we had pre-tax costs of $158.1 million related to the permanent closure of these facilities. These costs consisted of $109.9 million related to the write-off of fixed assets, $37.1 million related to AROs, and $11.1 million related to inventory and other reserves. No additional costs were recorded during the three months ended March 31, 2022.158.1109.937.111.1No00012857852022-01-012022-03-3100012857852022-04-29xbrli:shares0001285785us-gaap:ProductMember2022-01-012022-03-31iso4217:USD0001285785us-gaap:ProductMember2021-01-012021-03-3100012857852021-01-012021-03-31iso4217:USDxbrli:shares00012857852022-03-3100012857852021-12-3100012857852020-12-3100012857852021-03-310001285785us-gaap:CommonStockMember2020-12-310001285785us-gaap:AdditionalPaidInCapitalMember2020-12-310001285785us-gaap:RetainedEarningsMember2020-12-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001285785us-gaap:NoncontrollingInterestMember2020-12-310001285785us-gaap:RetainedEarningsMember2021-01-012021-03-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001285785us-gaap:NoncontrollingInterestMember2021-01-012021-03-310001285785us-gaap:CommonStockMember2021-01-012021-03-310001285785us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001285785us-gaap:CommonStockMember2021-03-310001285785us-gaap:AdditionalPaidInCapitalMember2021-03-310001285785us-gaap:RetainedEarningsMember2021-03-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001285785us-gaap:NoncontrollingInterestMember2021-03-310001285785us-gaap:CommonStockMember2021-12-310001285785us-gaap:AdditionalPaidInCapitalMember2021-12-310001285785us-gaap:RetainedEarningsMember2021-12-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001285785us-gaap:NoncontrollingInterestMember2021-12-310001285785us-gaap:RetainedEarningsMember2022-01-012022-03-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001285785us-gaap:NoncontrollingInterestMember2022-01-012022-03-310001285785us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001285785us-gaap:CommonStockMember2022-01-012022-03-310001285785us-gaap:CommonStockMember2022-03-310001285785us-gaap:AdditionalPaidInCapitalMember2022-03-310001285785us-gaap:RetainedEarningsMember2022-03-310001285785us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001285785us-gaap:NoncontrollingInterestMember2022-03-310001285785mos:MiskiMayoJointVentureMember2018-01-08xbrli:pure0001285785mos:MaadenWaadAlShamalPhosphateCompanyMember2022-03-310001285785mos:MaadenWaadAlShamalPhosphateCompanyMember2022-01-012022-03-310001285785mos:PotashSegmentMember2021-12-310001285785mos:MosaicFertilizantesMember2021-12-310001285785mos:CorporateEliminationsAndOtherSegmentMember2021-12-310001285785mos:PotashSegmentMember2022-01-012022-03-310001285785mos:MosaicFertilizantesMember2022-01-012022-03-310001285785mos:CorporateEliminationsAndOtherSegmentMember2022-01-012022-03-310001285785mos:PotashSegmentMember2022-03-310001285785mos:MosaicFertilizantesMember2022-03-310001285785mos:CorporateEliminationsAndOtherSegmentMember2022-03-3100012857852016-08-310001285785us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2022-03-310001285785us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2022-03-310001285785us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2022-03-310001285785us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel2Member2022-03-310001285785us-gaap:CashAndCashEquivalentsMemberus-gaap:FairValueInputsLevel1Member2021-12-310001285785us-gaap:FairValueInputsLevel2Memberus-gaap:CorporateDebtSecuritiesMember2021-12-310001285785us-gaap:MunicipalBondsMemberus-gaap:FairValueInputsLevel2Member2021-12-310001285785us-gaap:USTreasuryAndGovernmentMemberus-gaap:FairValueInputsLevel2Member2021-12-310001285785us-gaap:CorporateDebtSecuritiesMember2022-03-310001285785us-gaap:CorporateDebtSecuritiesMember2021-12-310001285785us-gaap:MunicipalBondsMember2022-03-310001285785us-gaap:MunicipalBondsMember2021-12-310001285785us-gaap:USTreasuryAndGovernmentMember2022-03-310001285785us-gaap:USTreasuryAndGovernmentMember2021-12-310001285785us-gaap:DebtSecuritiesMember2022-03-310001285785us-gaap:DebtSecuritiesMember2022-01-012022-03-310001285785us-gaap:DebtSecuritiesMember2021-01-012021-03-310001285785mos:InventoryFinancingArrangementMember2022-01-012022-03-310001285785mos:InventoryFinancingArrangementMember2021-01-012021-03-310001285785mos:ReceivablePurchasingAgreementDomain2022-01-012022-03-310001285785mos:ReceivablePurchasingAgreementDomain2021-01-012021-03-310001285785mos:StructuredAccountsPayableMember2021-12-3100012857852021-01-012021-06-300001285785us-gaap:UnfavorableRegulatoryActionMembermos:A2015ConsentDecreesWithEPAMember2022-03-310001285785us-gaap:UnfavorableRegulatoryActionMembermos:A2015ConsentDecreesWithEPAMember2021-12-310001285785mos:BonnieFacilityTrustMember2019-12-310001285785mos:PlantCityandBonnieFacilitiesMember2022-03-310001285785mos:PlantCityandBonnieFacilitiesMember2021-12-310001285785us-gaap:InterestRateSwapMember2022-03-310001285785us-gaap:ForeignExchangeContractMember2022-03-310001285785us-gaap:ForeignExchangeContractMember2021-12-310001285785us-gaap:CommodityContractMember2022-03-310001285785us-gaap:CommodityContractMember2021-12-310001285785us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-01-012022-03-310001285785us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2022-03-310001285785us-gaap:FairValueMeasurementsRecurringMemberus-gaap:ForeignExchangeContractMember2021-12-310001285785us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2022-03-310001285785us-gaap:FairValueMeasurementsRecurringMemberus-gaap:CommodityContractMember2021-12-310001285785us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001285785us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001285785us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001285785us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001285785mos:A2021RepurchaseProgramMember2021-08-230001285785mos:AcceleratedShareRepurchaseAgreementMember2022-01-012022-03-310001285785mos:AcceleratedShareRepurchaseAgreementMember2022-03-3100012857852021-08-230001285785us-gaap:AccumulatedTranslationAdjustmentMember2021-12-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-12-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2021-12-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-12-310001285785us-gaap:AccumulatedTranslationAdjustmentMember2022-01-012022-03-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-012022-03-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2022-01-012022-03-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-01-012022-03-310001285785us-gaap:AccumulatedTranslationAdjustmentMember2022-03-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-03-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2022-03-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2022-03-310001285785us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2020-12-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2020-12-310001285785us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-03-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-03-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2021-01-012021-03-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-01-012021-03-310001285785us-gaap:AccumulatedTranslationAdjustmentMember2021-03-310001285785us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-03-310001285785us-gaap:AociDerivativeQualifyingAsHedgeExcludedComponentParentMember2021-03-310001285785us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2021-03-310001285785us-gaap:InvesteeMember2022-03-310001285785us-gaap:InvesteeMember2021-12-310001285785us-gaap:EquityMethodInvesteeMember2022-01-012022-03-310001285785us-gaap:EquityMethodInvesteeMember2021-01-012021-03-310001285785us-gaap:BeneficialOwnerMember2022-03-310001285785us-gaap:BeneficialOwnerMember2021-12-310001285785mos:WaterLossIncidentMember2016-08-310001285785srt:MinimumMembermos:WaterLossIncidentMember2022-03-3100012857852020-07-240001285785mos:BraziliansubsidiaryjudicialandadministrativeproceedingsMembersrt:MaximumMember2022-03-310001285785mos:BraziliansubsidiaryjudicialandadministrativeproceedingsMember2022-03-310001285785mos:BraziliansubsidiarylaborclaimsMembersrt:MaximumMember2022-03-310001285785mos:BraziliansubsidiarylaborclaimsMember2022-03-310001285785mos:BraziliansubsidiaryenvironmentalclaimsMembersrt:MaximumMember2022-03-310001285785mos:BraziliansubsidiaryenvironmentalclaimsMember2022-03-310001285785mos:BraziliansubsidiaryothercivilcontingentliabilitiesandotherclaimsMembersrt:MaximumMember2022-03-310001285785mos:BraziliansubsidiaryothercivilcontingentliabilitiesandotherclaimsMember2022-03-310001285785mos:UberabagypstackssettledlitigationMember2015-01-012015-12-310001285785mos:BrazilianNonIncomeTaxProceedingsMembersrt:MaximumMember2022-03-310001285785mos:BrazilianNonIncomeTaxProceedingsMemberus-gaap:IndemnificationGuaranteeMembersrt:MaximumMember2022-03-310001285785mos:BrazilianNonIncomeTaxProceedingsMembermos:PISAndCofinsCasesMembersrt:MaximumMember2022-03-310001285785us-gaap:ProductMembermos:PhosphatesSegmentMember2022-01-012022-03-310001285785us-gaap:ProductMembermos:PotashSegmentMember2022-01-012022-03-310001285785us-gaap:ProductMembermos:MosaicFertilizantesMember2022-01-012022-03-310001285785mos:CorporateEliminationsAndOtherSegmentMemberus-gaap:ProductMember2022-01-012022-03-310001285785mos:PhosphatesSegmentMember2022-01-012022-03-310001285785us-gaap:ProductMembermos:PhosphatesSegmentMember2021-01-012021-03-310001285785us-gaap:ProductMembermos:PotashSegmentMember2021-01-012021-03-310001285785us-gaap:ProductMembermos:MosaicFertilizantesMember2021-01-012021-03-310001285785mos:CorporateEliminationsAndOtherSegmentMemberus-gaap:ProductMember2021-01-012021-03-310001285785mos:PhosphatesSegmentMember2021-01-012021-03-310001285785mos:PotashSegmentMember2021-01-012021-03-310001285785mos:MosaicFertilizantesMember2021-01-012021-03-310001285785mos:CorporateEliminationsAndOtherSegmentMember2021-01-012021-03-310001285785mos:PhosphatesSegmentMember2022-03-310001285785mos:PhosphatesSegmentMember2021-12-310001285785mos:ChinaandIndiadistributionoperationsMembermos:CorporateEliminationsAndOtherSegmentMemberus-gaap:ProductMember2022-01-012022-03-310001285785mos:ChinaandIndiadistributionoperationsMembermos:CorporateEliminationsAndOtherSegmentMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:BRus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:BRus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785mos:CanpotexMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785mos:CanpotexMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:CAus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:CAus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:CNus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:CNus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:MXus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:MXus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:ARus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:ARus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785us-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMembercountry:PY2022-01-012022-03-310001285785us-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMembercountry:PY2021-01-012021-03-310001285785us-gaap:TransferredAtPointInTimeMembercountry:COus-gaap:ProductMember2022-01-012022-03-310001285785us-gaap:TransferredAtPointInTimeMembercountry:COus-gaap:ProductMember2021-01-012021-03-310001285785country:JPus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:JPus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:AUus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:AUus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785us-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMembercountry:HN2022-01-012022-03-310001285785us-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMembercountry:HN2021-01-012021-03-310001285785country:THus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:THus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:DOus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:DOus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:INus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:INus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785mos:OtherForeignMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785mos:OtherForeignMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785mos:TotalForeignMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785mos:TotalForeignMemberus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:USus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2022-01-012022-03-310001285785country:USus-gaap:TransferredAtPointInTimeMemberus-gaap:ProductMember2021-01-012021-03-310001285785country:BR2021-01-012021-06-300001285785country:ID2021-01-012021-06-300001285785country:CN2021-01-012021-06-300001285785country:IN2021-01-012021-06-300001285785mos:OtherForeignMember2021-01-012021-06-300001285785us-gaap:TransferredAtPointInTimeMembermos:ProductTypeOneMember2022-01-012022-03-310001285785us-gaap:TransferredAtPointInTimeMembermos:ProductTypeOneMember2021-01-012021-03-310001285785mos:ProductTypeTwoMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001285785mos:ProductTypeTwoMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001285785mos:ProductTypeThreeMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001285785mos:ProductTypeThreeMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001285785mos:ProductTypeFourMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001285785mos:ProductTypeFourMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-310001285785us-gaap:TransferredAtPointInTimeMembermos:ProductTypeFiveMember2022-01-012022-03-310001285785us-gaap:TransferredAtPointInTimeMembermos:ProductTypeFiveMember2021-01-012021-03-310001285785mos:OtherProductTypesMemberus-gaap:TransferredAtPointInTimeMember2022-01-012022-03-310001285785mos:OtherProductTypesMemberus-gaap:TransferredAtPointInTimeMember2021-01-012021-03-3100012857852021-10-012021-12-310001285785us-gaap:FacilityClosingMemberus-gaap:PropertyPlantAndEquipmentMember2021-10-012021-12-310001285785us-gaap:AssetRetirementObligationCostsMemberus-gaap:FacilityClosingMember2021-10-012021-12-310001285785us-gaap:OtherCurrentAssetsMemberus-gaap:FacilityClosingMember2021-10-012021-12-31
Washington, D.C. 20549
For the quarterly period ended March 31, 2022
For the transition period from                      to                     
Commission file number 001-32327
The Mosaic Company
(Exact name of registrant as specified in its charter)  
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
101 East Kennedy Blvd
Suite 2500
Tampa, Florida 33602
(800) 918-8270
(Address and zip code of principal executive offices and registrant’s telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareMOSNew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x    No  ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  x     No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):    Large accelerated filer  x    Accelerated filer  ¨    Non-accelerated filer  ¨    Smaller reporting company   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. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes      No  x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date: 361,993,312 shares of Common Stock as of April 29, 2022.

(In millions, except per share amounts)
Three months ended
March 31, 2022March 31, 2021
Net sales$3,922.3 $2,297.1 
Cost of goods sold2,483.2 1,862.2 
Gross margin1,439.1 434.9 
Selling, general and administrative expenses132.4 101.7 
Other operating expense50.9 20.0 
Operating earnings1,255.8 313.2 
Interest expense, net(39.3)(45.0)
Foreign currency transaction gain (loss)310.7 (45.8)
Other income0.2 3.0 
Earnings from consolidated companies before income taxes1,527.4 225.4 
Provision for income taxes372.4 59.7 
Earnings from consolidated companies1,155.0 165.7 
Equity in net earnings (loss) of nonconsolidated companies30.7 (7.5)
Net earnings including noncontrolling interests1,185.7 158.2 
Less: Net earnings attributable to noncontrolling interests3.7 1.5 
Net earnings attributable to Mosaic$1,182.0 $156.7 
Basic net earnings per share attributable to Mosaic$3.23 $0.41 
Basic weighted average number of shares outstanding366.1 379.2 
Diluted net earnings per share attributable to Mosaic$3.19 $0.41 
Diluted weighted average number of shares outstanding370.1 382.8 
See Notes to Condensed Consolidated Financial Statements

(In millions)
Three months ended
March 31, 2022March 31, 2021
Net earnings including noncontrolling interest$1,185.7 $158.2 
Other comprehensive income, net of tax
Foreign currency translation gain (loss)305.3 (106.1)
Net actuarial gain and prior service cost0.4 3.8 
Realized gain on interest rate swap0.5 0.5 
Net (loss) on marketable securities held in trust fund(28.4)(17.8)
Other comprehensive income (loss)277.8 (119.6)
Comprehensive income 1,463.5 38.6 
Less: Comprehensive income (loss) attributable to noncontrolling interest8.0 (0.8)
Comprehensive income attributable to Mosaic$1,455.5 $39.4 

See Notes to Condensed Consolidated Financial Statements

(In millions, except per share amounts)
March 31, 2022December 31, 2021
Current assets:
Cash and cash equivalents$881.9 $769.5 
Receivables, net, including affiliate receivables of $340.6 and $390.1, respectively1,530.1 1,531.9 
Inventories3,326.5 2,741.4 
Other current assets486.9 282.5 
Total current assets6,225.4 5,325.3 
Property, plant and equipment, net of accumulated depreciation of $8,579.6 and $8,238.1, respectively12,837.6 12,475.3 
Investments in nonconsolidated companies727.2 691.8 
Goodwill1,196.4 1,172.2 
Deferred income taxes1,012.6 997.1 
Other assets1,423.9 1,374.7 
Total assets$23,423.1 $22,036.4 
Liabilities and Equity
Current liabilities:
Short-term debt$480.5 $302.8 
Current maturities of long-term debt599.7 596.6 
Structured accounts payable arrangements850.1 743.7 
Accounts payable848.7 1,260.7 
Accrued liabilities2,272.7 1,883.6 
Total current liabilities5,051.7 4,787.4 
Long-term debt, less current maturities3,377.6 3,382.2 
Deferred income taxes1,070.7 1,016.2 
Other noncurrent liabilities2,132.3 2,102.1 
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of March 31, 2022 and December 31, 2021  
Common Stock, $0.01 par value, 1,000,000,000 shares authorized, 391,681,516 shares issued and 362,008,984 shares outstanding as of March 31, 2022, 390,815,099 shares issued and 368,732,231 shares outstanding as of December 31, 20213.6 3.7 
Capital in excess of par value56.6 478.0 
Retained earnings13,196.5 12,014.2 
Accumulated other comprehensive loss(1,618.3)(1,891.8)
Total Mosaic stockholders' equity11,638.4 10,604.1 
Noncontrolling interests152.4 144.4 
Total equity11,790.8 10,748.5 
Total liabilities and equity$23,423.1 $22,036.4 
See Notes to Condensed Consolidated Financial Statements

(In millions)
Three months ended
March 31, 2022March 31, 2021
Cash Flows from Operating Activities:
Net earnings including noncontrolling interests$1,185.7 $158.2 
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization226.7 209.1 
Deferred and other income taxes130.2 (37.0)
Equity in net (earnings) loss of nonconsolidated companies, net of dividends(30.7)7.5 
Accretion expense for asset retirement obligations19.6 17.1 
Accretion expense for leases3.2 3.8 
Share-based compensation expense16.4 14.9 
Unrealized (gain) loss on derivatives(98.8)(7.1)
Foreign currency adjustments(318.9)34.5 
Other11.8 0.8 
Changes in assets and liabilities:
Receivables, net87.0 (1.5)
Other current and noncurrent assets(88.1)14.0 
Accounts payable and accrued liabilities(296.9)64.6 
Other noncurrent liabilities(59.4)20.6 
Net cash provided by operating activities506.2 318.8 
Cash Flows from Investing Activities:
Capital expenditures(290.5)(288.6)
Purchases of available-for-sale securities - restricted(57.8)(123.7)
Proceeds from sale of available-for-sale securities - restricted51.9 110.8 
Purchases of held-to-maturity securities (0.8)
Proceeds from sale of held-to-maturity securities1.7 0.8 
Net cash used in investing activities(297.2)(308.5)
Cash Flows from Financing Activities:
Payments of short-term debt(643.3) 
Proceeds from issuance of short-term debt814.4 15.0 
Payments of structured accounts payable arrangements(462.5)(161.0)
Proceeds from structured accounts payable arrangements563.6 314.7 
Collections of transferred receivables446.9 86.6 
Payments of transferred receivables (375.6) 
Payments of long-term debt(14.1)(114.5)
Repurchases of stock(422.1) 
Cash dividends paid(40.6)(18.9)
Other8.3 (0.2)
Net cash (used in) provided by financing activities(125.0)121.7 
Effect of exchange rate changes on cash31.1 (20.1)
Net change in cash, cash equivalents and restricted cash115.1 111.9 
Cash, cash equivalents and restricted cash - December 31786.3 594.4 
Cash, cash equivalents and restricted cash - March 31$901.4 $706.3 
See Notes to Condensed Consolidated Financial Statements

(In millions)
Three months ended
March 31, 2022March 31, 2021
Reconciliation of cash, cash equivalents and restricted cash reported within the unaudited condensed consolidated balance sheets to the unaudited condensed consolidated statements of cash flows:
Cash and cash equivalents$881.9 $692.0 
Restricted cash in other current assets10.1 10.0 
Restricted cash in other assets9.4 4.3 
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statement of cash flows$901.4 $706.3 
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest (net of amount capitalized of $6.4 and $10.2 for the three months ended March 31, 2022 and 2021, respectively)$4.2 $0.6 
Income taxes (net of refunds)258.5 82.7 
See Notes to Condensed Consolidated Financial Statements

(In millions, except per share amounts)
Mosaic Shareholders
Common StockCommon StockCapital in Excess of Par ValueRetained EarningsAccumulated Other Comprehensive (Loss)Noncontrolling InterestsTotal Equity
Balance as of December 31, 2020379.1 $3.8 $872.8 $10,511.0 $(1,806.2)$173.8 $9,755.2 
Total comprehensive income (loss)— — — 156.7 (117.3)(0.8)38.6 
Vesting of restricted stock units0.6 — (7.6)— — — (7.6)
Stock based compensation— — 11.0 — — — 11.0 
Dividends for noncontrolling interests— — — — — (0.2)(0.2)
Balance as of March 31, 2021379.7 $3.8 $876.2 $10,667.7 $(1,923.5)$172.8 $9,797.0 
Balance as of December 31, 2021368.7 $3.7 $478.0 $12,014.2 $(1,891.8)$144.4 $10,748.5 
Total comprehensive income (loss)— — — 1,182.0 273.5 8.0 1,463.5 
Stock option exercises— — 8.3 — — — 8.3 
Vesting of restricted stock units0.9 — (19.5)— — — (19.5)
Stock based compensation— — 11.8 — — — 11.8 
Share repurchases(7.6)(0.1)(422.0)— — — (422.1)
Dividends— — — 0.3 — — 0.3 
Balance as of March 31, 2022362.0 $3.6 $56.6 $13,196.5 $(1,618.3)$152.4 $11,790.8 

See Notes to Condensed Consolidated Financial Statements

(Tables in millions, except per share amounts and as otherwise designated)
1. Organization and Nature of Business
The Mosaic Company (“Mosaic,” and, with its consolidated subsidiaries, “we,” “us,” “our,” or the “Company”) 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 non-controlling interest, including consolidated variable interest entities and investments accounted for by the equity method.
We are organized into the following business segments:
Our Phosphate 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. The Phosphate segment includes our 75% interest in the Miski Mayo Phosphate Mine in Peru. These results are consolidated in the Phosphate segment. The Phosphate segment also includes our 25% interest in the Ma’aden Wa’ad Al Shamal Phosphate Company (“MWSPC”), a joint venture to develop, own and operate integrated phosphate production facilities in the Kingdom of Saudi Arabia. We market approximately 25% of MWSPC phosphate production. We recognize our equity in the net earnings or losses relating to MWSPC on a one-quarter lag in our Condensed Consolidated Statements of Earnings.
Our Potash 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 (“Canpotex”), an export association of Canadian potash producers through which we sell our Canadian potash outside the U.S. and Canada.
Our Mosaic Fertilizantes business segment includes the assets in Brazil that we acquired in the 2018 acquisition (the “Acquisition”) of Vale Fertilizantes S.A. (now known as Mosaic Fertilizantes P&K S.A. or the “Acquired Business”), which consist of five phosphate rock mines, four phosphate chemical plants and a potash mine. 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.
Intersegment eliminations, unrealized mark-to-market gains/losses on derivatives, debt expenses, Streamsong Resort® results of operations, and the results of the China and India distribution businesses are included within Corporate, Eliminations and Other.
2. Summary of Significant Accounting Policies
Statement Presentation and Basis of Consolidation
The accompanying unaudited Condensed Consolidated Financial Statements of Mosaic have been prepared on the accrual basis of accounting and in accordance with the requirements of the Securities and Exchange Commission (“SEC”) for interim financial reporting. As permitted under these rules, certain footnotes and other financial information that are normally required by accounting principles generally accepted in the United States (“GAAP”) can be condensed or omitted. The Condensed Consolidated Financial Statements included in this document reflect, in the opinion of our management, all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of the results for the interim periods presented. The following notes should be read in conjunction with the accounting policies and other disclosures in the Notes to the Consolidated Financial Statements included in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2021 (the “10-K Report”). Sales, expenses, cash flows, assets and liabilities can and do vary during the year as a result of seasonality and other factors. Therefore, interim results are not necessarily indicative of the results to be expected for the full fiscal year.

The accompanying Condensed Consolidated Financial Statements include the accounts of Mosaic, its majority-owned subsidiaries, and certain variable interest entities in which Mosaic is the primary beneficiary. Certain investments in companies where we do not have control but have the ability to exercise significant influence are accounted for by the equity method.
Accounting Estimates
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 (“ARO”), and income tax-related accounts, including the valuation allowance against deferred income tax assets. Actual results could differ from these estimates.


3. Other Financial Statement Data
The following provides additional information concerning selected balance sheet accounts:
March 31, 2022December 31, 2021
Other current assets
Income and other taxes receivable $185.6 $126.1 
Prepaid expenses 163.5 107.3 
Other 137.8 49.1 
$486.9 $282.5 
Other assets
Restricted cash$9.4 $8.5 
MRO inventory148.7 144.7 
Marketable securities held in trust695.8 731.5 
Operating lease right-of-use assets154.8 120.2 
Indemnification asset24.9 21.0 
Long-term receivable46.4 41.5 
Other343.9 307.3 
$1,423.9 $1,374.7 
Accrued liabilities
Accrued dividends$1.9 $43.6 
Payroll and employee benefits 169.0 235.9 
Asset retirement obligations 218.0 222.4 
Customer prepayments (a)
818.4 437.7 
Accrued income and other taxes250.4 184.3 
Operating lease obligation56.1 59.7 
Servicing liability152.4 81.1 
Other 606.5 618.9 
$2,272.7 $1,883.6 
Other noncurrent liabilities
Asset retirement obligations $1,553.4 $1,526.9 
Accrued pension and postretirement benefits127.9 64.3 
Operating lease obligation101.6 114.4 
Unrecognized tax benefits 29.6 156.6 
Other 319.8 239.9 
$2,132.3 $2,102.1 
(a) The timing of recognition of revenue related to our performance obligations may be different than the timing of collection of cash related to those performance obligations. Specifically, we collect prepayments from certain customers in Brazil. In addition, cash collection from


Canpotex may occur prior to delivery of product to the end customer. We generally satisfy our contractual liabilities within one quarter of incurring the liability.
4. Earnings Per Share
The numerator for basic and diluted earnings per share (“EPS”) is net earnings attributable to Mosaic. The denominator for basic EPS is the weighted average number of shares outstanding during the period. The denominator for diluted EPS also includes the weighted average number of additional common shares that would have been outstanding if the dilutive potential common shares had been issued, unless the shares are anti-dilutive.
The following is a reconciliation of the numerator and denominator for the basic and diluted EPS computations:
Three Months Ended March 31,
Net income attributable to Mosaic$1,182.0 $156.7 
Basic weighted average number of shares outstanding366.1 379.2 
Dilutive impact of share-based awards4.0 3.6 
Diluted weighted average number of shares outstanding370.1 382.8 
Basic net income per share attributable to Mosaic$3.23 $0.41 
Diluted net income per share attributable to Mosaic$3.19 $0.41 
A total of 0.4 million and 0.7 million shares of common stock subject to issuance related to share-based awards for the three months ended March 31, 2022 and March 31, 2021, respectively, have been excluded from the calculation of diluted EPS because the effect would have been anti-dilutive.
5. Inventories
Inventories consist of the following:
March 31, 2022December 31, 2021
Raw materials$373.7 $296.6 
Work in process749.6 741.1 
Finished goods2,001.6 1,534.3 
Final price deferred(a)
47.4 31.4 
Operating materials and supplies154.2 138.0 
$3,326.5 $2,741.4 
(a)Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon.
6. Goodwill
Mosaic had goodwill of $1.2 billion as of March 31, 2022 and December 31, 2021, respectively. We review goodwill for impairment annually in October and at any time events or circumstances indicate that the carrying value may not be fully


recoverable, which is based on our accounting policy and GAAP. The changes in the carrying amount of goodwill, by reporting unit, are as follows:
PotashMosaic FertilizantesCorporate, Eliminations and OtherTotal
Balance as of December 31, 2021$1,064.2 $95.9 $12.1 $1,172.2 
Foreign currency translation19.9 4.3  24.2 
Balance as of March 31, 2022$1,084.1 $100.2 $12.1 $1,196.4 
We are required to perform our next annual goodwill impairment analysis as of October 31, 2022. It is possible that future business conditions could deteriorate from the current state, raw material or product price projections could decline significantly from current estimates, or our common stock price could decline significantly. If our net sales and cash flow projections are not achieved or our common stock price significantly declines from current levels, book values of certain operations could exceed their fair values, which may result in goodwill impairment charges in future periods. It is not possible at this time to determine if any such future impairment charge would result or, if it does, whether such charge would be material.
7. Marketable Securities Held in Trusts
In August 2016, Mosaic deposited $630 million into two trust funds (together, the “RCRA Trusts”) created to provide additional financial assurance in the form of cash for the estimated costs (“Gypstack Closure Costs”) of closure and long term care of our Florida and Louisiana phosphogypsum management systems (“Gypstacks”), as described further in Note 10 of our Notes to Condensed Consolidated Financial Statements. Our actual Gypstack Closure Costs are generally expected to be paid by us in the normal course of our Phosphate business; however, funds held in each of the RCRA Trusts can be drawn by the applicable governmental authority in the event we cannot perform our closure and long term care obligations. When our estimated Gypstack Closure Costs with respect to the facilities associated with a RCRA Trust are sufficiently lower than the amount on deposit in that RCRA Trust, we have the right to request that the excess funds be released to us. The same is true for the RCRA Trust balance remaining after the completion of our obligations, which will be performed over a period that may not end until three decades or more after a Gypstack has been closed. The investments held by the RCRA Trusts are managed by independent investment managers with discretion to buy, sell, and invest pursuant to the objectives and standards set forth in the related trust agreements. Amounts reserved to be held or held in the RCRA Trusts (including losses or reinvested earnings) are included in other assets on our Condensed Consolidated Balance Sheets.
The RCRA Trusts hold investments, which are restricted from our general use, in marketable debt securities classified as available-for-sale and are carried at fair value. As a result, unrealized gains and losses are included in other comprehensive income until realized, unless it is determined that the entire unamortized cost basis of the investment is not expected to be recovered. A credit loss would then be recognized in operations for the amount of the expected credit loss. As of March 31, 2022, we expect to recover our amortized cost on all available-for-sale securities and have not established an allowance for credit loss.
We review the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. We determine the fair market values of our available-for-sale securities and certain other assets based on the fair value hierarchy described below:
Level 1: Values based on unadjusted quoted prices in active markets that are accessible at the measurement date for identical assets or liabilities.
Level 2: Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, or model-based valuation techniques for which all significant assumptions are observable in the market.
Level 3: Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect our own estimates of assumptions that market participants would use in pricing the


asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
The estimated fair value of the investments in the RCRA Trusts as of March 31, 2022 and December 31, 2021 are as follows:
March 31, 2022
Level 1
    Cash and cash equivalents $7.1 $ $ $7.1 
Level 2
    Corporate debt securities198.6 0.8 (7.3)192.1 
    Municipal bonds201.0 0.9 (5.8)196.1 
    U.S. government bonds306.2  (21.6)284.6 
Total$712.9 $1.7 $(34.7)$679.9 
December 31, 2021
Level 1
    Cash and cash equivalents $8.1 $ $ $8.1 
Level 2
    Corporate debt securities198.8 5.6 (0.9)203.5 
    Municipal bonds198.1 6.5 (0.5)204.1 
    U.S. government bonds305.3  (6.1)299.2 
Total$710.3 $12.1 $(7.5)$714.9 


The following tables show gross unrealized losses and fair values of the RCRA Trusts available-for-sale securities that have been in a continuous unrealized loss position for which an allowance for credit losses has not been recorded as of March 31, 2022 and December 31, 2021:
March 31, 2022December 31, 2021
(in millions)Fair
Securities that have been in a continuous loss position for less than 12 months:
Corporate debt securities$143.8 $(6.6)$67.1 $(0.8)
Municipal bonds127.2 (5.0)39.9 (0.4)
U.S. government bonds116.5 (8.3)152.2 (2.5)
$387.5 $(19.9)$259.2 $(3.7)
Securities that have been in a continuous loss position for more than 12 months:
Corporate debt securities$6.5 $(0.7)$3.6 $(0.1)
Municipal bonds10.3 (0.8)4.5 (0.1)
U.S. government bonds165.7 (13.3)143.4 (3.6)
$182.5 $(14.8)$151.5 $(3.8)
The following table summarizes the balance by contractual maturity of the available-for-sale debt securities invested by the RCRA Trusts as of March 31, 2022. Actual maturities may differ from contractual maturities because the issuers of the securities may have the right to prepay obligations before the underlying contracts mature.
March 31, 2022
Due in one year or less$17.7 
Due after one year through five years348.4 
Due after five years through ten years280.7 
Due after ten years26.0 
Total debt securities$672.8 
For the three months ended March 31, 2022, realized gains were $0.8 million and there were no realized losses. For the three months ended March 31, 2021, realized gains were $2.9 million and realized losses were $0.3 million.

8. Financing Arrangements
Inventory Financing Arrangement
We have an inventory financing arrangement whereby we can sell up to $625 million of certain inventory for cash and subsequently repurchase the inventory at an agreed upon price and time in the future, not to exceed 180 days. Under the terms of the agreement, we may borrow up to 90% of the value of the inventory. It is later repurchased by Mosaic at the original sale price plus interest and any transaction costs. As of March 31, 2022 and December 31, 2021, $452.8 million and $302.7 million, respectively, of inventory was financed under this arrangement, which is included in short-term debt on the Condensed Consolidated Balance Sheet.


Receivable Purchasing Arrangement
We finance certain accounts receivable through a Receivable Purchasing Agreement (“RPA”), with a bank whereby, from time-to-time, we sell the receivables. The net face value of the purchased receivables may not exceed $400 million at any point in time. The purchase price of the receivable sold under the RPA is the face value of the receivable less an agreed upon discount. The receivables sold under the RPA are accounted for as a true sale. Upon sale, these receivables are removed from the Condensed Consolidated Balance Sheets. Cash received is presented as cash provided by operating activities in the Condensed Consolidated Statements of Cash Flows.
During the three months ended March 31, 2022 and March 31, 2021, the Company sold approximately $549.3 million, and $86.6 million, respectively, of accounts receivable under this arrangement. Discounts on sold receivables were not material for any period presented. Following the sale to the bank, we continue to service the collection of the receivable on behalf of the bank without further consideration. As of March 31, 2022 and December 31, 2021, $152.4 million and $81.1 million, respectively, had been collected but not yet remitted to the bank. This amount is classified in accrued liabilities on the Condensed Consolidated Balance Sheets. Cash collected and remitted are presented as financing activities in the Condensed Consolidated Statements of Cash Flows.
Structured Accounts Payable Arrangements
In Brazil, we finance some of our potash-based fertilizer, sulfur, ammonia and other raw material product purchases through third-party contractual arrangements. These arrangements provide that the third-party intermediary advance the amount of the scheduled payment to the vendor, less an appropriate discount, at a scheduled payment date. Mosaic then makes payment to the third-party intermediary at a later date, stipulated in accordance with the commercial terms negotiated. As of March 31, 2022 and December 31, 2021, the total structured accounts payable arrangements were $850.1 million and $743.7 million, respectively.
9. Asset Retirement Obligations
We recognize our estimated AROs in the period in which we have an existing legal obligation associated with the retirement of a tangible long-lived asset, and the amount of the liability can be reasonably estimated. The ARO is recognized at fair value when the liability is incurred with a corresponding increase in the carrying amount of the related long-lived asset. We depreciate the tangible asset over its estimated useful life. The liability is adjusted in subsequent periods through accretion expense, which represents the increase in the present value of the liability due to the passage of time. Such depreciation and accretion expenses are included in cost of goods sold for operating facilities and other operating expense for indefinitely closed facilities.
Our legal obligations related to asset retirement require us to: (i) reclaim lands disturbed by mining as a condition to receive permits to mine phosphate ore reserves; (ii) treat low pH process water in Gypstacks to neutralize acidity; (iii) close and monitor Gypstacks at our Florida and Louisiana facilities at the end of their useful lives; (iv) remediate certain other conditional obligations; (v) remove all surface structures and equipment, plug and abandon mine shafts, contour and revegetate, as necessary, and monitor for five years after closing our Carlsbad, New Mexico facility; (vi) decommission facilities, manage tailings and execute site reclamation at our Saskatchewan potash mines at the end of their useful lives; (vii) de-commission mines in Brazil and Peru; and (viii) decommission plant sites and close Gypstacks in Brazil. The estimated liability for these legal obligations is based on the estimated cost to satisfy the above obligations, which is discounted using a credit-adjusted risk-free rate.


A reconciliation of our AROs is as follows:
(in millions)March 31, 2022December 31, 2021
AROs, beginning of period$1,749.3 $1,393.9 
Liabilities incurred4.6 20.2 
Liabilities settled(54.1)(163.1)
Accretion expense19.6 71.9 
Revisions in estimated cash flows12.1 443.3 
Foreign currency translation39.9 (16.9)
AROs, end of period1,771.4 1,749.3 
Less current portion218.0 222.4 
Non-current portion of AROs$1,553.4 $1,526.9 
North America Gypstack Closure Costs
A majority of our ARO relates to Gypstack Closure Costs in Florida and Louisiana. For financial reporting purposes, we recognize our estimated Gypstack Closure Costs at their present value. This present value determined for financial reporting purposes is reflected on our Consolidated Balance Sheets in accrued liabilities and other non-current liabilities.
As discussed below, we have arrangements to provide financial assurance for the estimated Gypstack Closure Costs associated with our facilities in Florida and Louisiana.
EPA RCRA Initiative. On September 30, 2015, we and our subsidiary, Mosaic Fertilizer, LLC (“Mosaic Fertilizer”), reached agreements with the U.S. Environmental Protection Agency (“EPA”), the U.S. Department of Justice (“DOJ”), the Florida Department of Environmental Protection (“FDEP”) and the Louisiana Department of Environmental Quality on the terms of two consent decrees (collectively, the “2015 Consent Decrees”) to resolve claims relating to our management of certain waste materials onsite at our Riverview, New Wales, Mulberry, Green Bay, South Pierce and Bartow fertilizer manufacturing facilities in Florida and our Faustina and Uncle Sam facilities in Louisiana. This followed a 2003 announcement by the EPA Office of Enforcement and Compliance Assurance that it would be targeting facilities in mineral processing industries, including phosphoric acid producers, for a thorough review under the U.S. Resource Conservation and Recovery Act (“RCRA”) and related state laws. As discussed below, a separate consent decree was previously entered into with EPA and the FDEP with respect to RCRA compliance at the Plant City, Florida phosphate concentrates facility (the “Plant City Facility”) that we acquired as part of our acquisition (the “CF Phosphate Assets Acquisition”) of the Florida phosphate assets and assumption of certain related liabilities of CF Industries, Inc. (“CF”).
The remaining monetary obligations under the 2015 Consent Decrees include:
•    Modification of certain operating practices and undertaking certain capital improvement projects over a period of several years that are expected to result in remaining capital expenditures likely to exceed $20 million in the aggregate.
•    Provision of additional financial assurance for the estimated Gypstack Closure Costs for Gypstacks at the covered facilities. The RCRA Trusts are discussed in Note 7 to our Condensed Consolidated Financial Statements. In addition, we have agreed to guarantee the difference between the amounts held in each RCRA Trust (including any earnings) and the estimated closure and long-term care costs.
As of December 31, 2021, the undiscounted amount of our Gypstack Closure Costs ARO associated with the facilities covered by the 2015 Consent Decrees, determined using the assumptions used for financial reporting purposes, was approximately $1.8 billion, and the present value of our Gypstack Closure Costs ARO reflected in our Consolidated Balance Sheet for those facilities was approximately $603 million.
Plant City and Bonnie Facilities. As part of the CF Phosphate Assets Acquisition, we assumed certain AROs related to Gypstack Closure Costs at both the Plant City Facility and a closed Florida phosphate concentrates facility in Bartow, Florida


(the “Bonnie Facility”) that we acquired. Associated with these assets are two related financial assurance arrangements for which we became responsible and that provided sources of funds for the estimated Gypstack Closure Costs for these facilities. Pursuant to federal or state laws, the applicable government entities are permitted to draw against such amounts in the event we cannot perform such closure activities. One of the financial assurance arrangements was initially a trust (the “Plant City Trust”) established to meet the requirements under a consent decree with the EPA and the FDEP with respect to RCRA compliance at Plant City. The Plant City Trust also satisfied Florida financial assurance requirements at that site. Beginning in September 2016, as a substitute for the financial assurance provided through the Plant City Trust, we have provided financial assurance for the Plant City Facility in the form of a surety bond (the “Plant City Bond”). The amount of the Plant City Bond is $249.7 million, which reflects our closure cost estimates as of December 31, 2021. The other financial assurance arrangement was also a trust fund (the “Bonnie Facility Trust”) established to meet the requirements under Florida financial assurance regulations that apply to the Bonnie Facility. In July 2018, we received $21.0 million from the Bonnie Facility Trust by substituting for the trust fund a financial test mechanism (“Bonnie Financial Test”) supported by a corporate guarantee as allowed by state regulations. Both financial assurance funding obligations require estimates of future expenditures that could be impacted by refinements in scope, technological developments, new information, cost inflation, changes in regulations, discount rates and the timing of activities. Under our current approach to satisfying applicable requirements, additional financial assurance would be required in the future if increases in cost estimates exceed the face amount of the Plant City Bond or the amount supported by the Bonnie Financial Test.
As of March 31, 2022 and December 31, 2021, the aggregate amounts of AROs associated with the combined Plant City Facility and Bonnie Facility Gypstack closure costs included in our Condensed Consolidated Balance Sheets were $249.7 million and $262.9 million, respectively. The aggregate amount represented by the Plant City Bond exceeds the present value of the aggregate amount of ARO associated with that facility. This is because the amount of financial assurance we are required to provide represents the aggregate undiscounted estimated amount to be paid by us in the normal course of our Phosphate business over a period that may not end until three decades or more after the Gypstack has been closed, whereas the ARO included in our Condensed Consolidated Balance Sheet reflects the discounted present value of those estimated amounts.
10. Income Taxes
During the three months ended March 31, 2022, gross unrecognized tax benefits decreased by $100.4 million to $24.2 million. The decrease is primarily related to the effective settlement of unrecognized tax benefits during the quarter. If recognized, approximately $23.8 million of the $24.2 million in unrecognized tax benefits would affect our effective tax rate and net earnings in future periods.
We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax provision. We had accrued interest and penalties totaling $4.4 million and $31.1 million as of March 31, 2022 and December 31, 2021, respectively, that were included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets.
Accounting for uncertain tax positions is determined by prescribing the minimum probability threshold that a tax position is more likely than not to be sustained based on the technical merits of the position. Mosaic is continually under audit by various tax authorities in the normal course of business. Such tax authorities may raise issues contrary to positions taken by the Company. If such positions are ultimately not sustained by the Company, this could result in material assessments to the Company. The costs related to defending, if needed, such positions on appeal or in court may be material. The Company believes that any issues raised have been properly accounted for in its current financial statements.
For the three months ended March 31, 2022, tax expense was a benefit of approximately $9.0 million. This consisted primarily of a share-based excess benefit, which was partially offset by changes in valuation allowances and other miscellaneous benefits. In addition to items specific to the period, our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, by a benefit associated with depletion, a benefit associated with non-U.S. incentives, changes in valuation allowances and by the impact of certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits for various taxes incurred.
Generally, for interim periods, income tax is equal to the total of (1) year-to-date pretax income multiplied by our forecasted effective tax rate plus (2) tax expense items specific to the period. In situations where we expect to report losses for which we do not expect to receive tax benefits, we are required to apply separate forecasted effective tax rates to those jurisdictions rather


than including them in the consolidated effective tax rate. For the three months ended March 31, 2022, income tax expense was not impacted by this set of rules.
For the three months ended March 31, 2021, discrete tax expense was a benefit of approximately $4.4 million. This consisted primarily of tax cost related to non-U.S. prior year adjustments, write-off of expired stock options, and other miscellaneous costs. In addition to items specific to the period, our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, by a benefit associated with depletion, by a benefit associated with non-U.S. incentives, by changes in valuation allowances and by the impact of certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits for various taxes incurred.
11. Derivative Instruments and Hedging Activities
We periodically enter into derivatives to mitigate our exposure to foreign currency risks, interest rate movements and the effects of changing commodity prices. We record all derivatives on the Condensed Consolidated Balance Sheets at fair value. The fair value of these instruments is determined by using quoted market prices, third-party comparables, or internal estimates. We net our derivative asset and liability positions when we have a master netting arrangement in place. Changes in the fair value of the foreign currency, commodity and freight derivatives are immediately recognized in earnings.
We do not apply hedge accounting treatments to our foreign currency exchange contracts, commodities contracts, or freight contracts. Unrealized gains and (losses) on foreign currency exchange contracts used to hedge cash flows related to the production of our products are included in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains and (losses) on commodities contracts and certain forward freight agreements are also recorded in cost of goods sold in the Condensed Consolidated Statements of Earnings. Unrealized gains or (losses) on foreign currency exchange contracts used to hedge cash flows that are not related to the production of our products are included in the foreign currency transaction gain/(loss) caption in the Condensed Consolidated Statements of Earnings.
From time to time, we enter into fixed-to-floating interest rate contracts. We apply fair value hedge accounting treatment to these contracts. Under these arrangements, we agree to exchange, at specified intervals, the difference between fixed and floating interest amounts calculated by reference to an agreed-upon notional principal amount. The mark-to-market of these fair value hedges is recorded as gains or losses in interest expense. We had no fixed-to-floating interest rate swap agreements in effect as of March 31, 2022 and December 31, 2021.
As of March 31, 2022 and December 31, 2021, the gross asset position of our derivative instruments was $144.2 million and $45.3 million, respectively, and the gross liability position of our liability instruments was $47.9 million and $45.5 million, respectively.
As of March 31, 2022 and December 31, 2021, the following is the total absolute notional volume associated with our outstanding derivative instruments:
(in millions of Units)March 31, 2022December 31, 2021
Derivative InstrumentDerivative CategoryUnit of Measure
Foreign currency derivativesForeign currencyUS Dollars3,215.4 3,185.8 
Natural gas derivativesCommodityMMbtu20.823.6
Credit-Risk-Related Contingent Features
Certain of our derivative instruments contain provisions that are governed by International Swap and Derivatives Association agreements with the counterparties. These agreements contain provisions that allow us to settle for the net amount between payments and receipts, and also state that if our debt were to be rated below investment grade, certain counterparties could request full collateralization on derivative instruments in net liability positions. The aggregate fair value of all derivative instruments with credit-risk-related contingent features that were in a liability position as of March 31, 2022 and December 31, 2021, was $13.3 million and $8.6 million, respectively. We have no cash collateral posted in association with these contracts. If the credit-risk-related contingent features underlying these agreements were triggered on March 31, 2022, we would have been


required to post an additional $1.8 million of collateral assets, which are either cash or U.S. Treasury instruments, to the counterparties.
Counterparty Credit Risk
We enter into foreign exchange, certain commodity and interest rate derivatives, primarily with a diversified group of highly rated counterparties. We continually monitor our positions and the credit ratings of the counterparties involved and limit the amount of credit exposure to any one party. While we may be exposed to potential losses due to the credit risk of non-performance by these counterparties, material losses are not anticipated. We closely monitor the credit risk associated with our counterparties and customers and to date have not experienced material losses.
12. Fair Value Measurements
Following is a summary of the valuation techniques for assets and liabilities recorded in our Condensed Consolidated Balance Sheets at fair value on a recurring basis:
Foreign Currency Derivatives - The foreign currency derivative instruments that we currently use are forward contracts and zero-cost collars, which typically expire within eighteen months. Most of the valuations are adjusted by a forward yield curve or interest rates. In such cases, these derivative contracts are classified within Level 2. Some valuations are based on exchange-quoted prices, which are classified as Level 1. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment, or foreign currency transaction (gain) loss. As of March 31, 2022 and December 31, 2021, the gross asset position of our foreign currency derivative instruments was $103.2 million and $27.0 million, respectively, and the gross liability position of our foreign currency derivative instruments was $47.9 million and $45.4 million, respectively.
Commodity Derivatives - The commodity contracts primarily relate to natural gas. The commodity derivative instruments that we currently use are forward purchase contracts, swaps, and three-way collars. The natural gas contracts settle using NYMEX futures or AECO price indexes, which represent fair value at any given time. The contracts’ maturities and settlements are scheduled for future months and settlements are scheduled to coincide with anticipated gas purchases during those future periods. Quoted market prices from NYMEX and AECO are used to determine the fair value of these instruments. These market prices are adjusted by a forward yield curve and are classified within Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of cost of goods sold in our Corporate, Eliminations and Other segment. As of March 31, 2022 and December 31, 2021, the gross asset position of our commodity derivative instruments was $41.0 million and $18.3 million, respectively, and the gross liability position of our commodity instruments was zero and $0.1 million, respectively.
Interest Rate Derivatives - We manage interest expense through interest rate contracts to convert a portion of our fixed-rate debt into floating-rate debt. From time to time, we also enter into interest rate swap agreements to hedge our exposure to changes in future interest rates related to anticipated debt issuances. Valuations are based on external pricing sources and are classified as Level 2. Changes in the fair market values of these contracts are recognized in the Condensed Consolidated Financial Statements as a component of interest expense. We did not hold any interest rate derivative positions as of March 31, 2022.
Financial Instruments
The carrying amounts and estimated fair values of our financial instruments are as follows:


March 31, 2022December 31, 2021
Carrying AmountFair ValueCarrying AmountFair Value
Cash and cash equivalents$881.9 $881.9 $769.5 $769.5 
Accounts receivable1,530.1 1,530.1 1,531.9 1,531.9 
Accounts payable848.7 848.7 1,260.7 1,260.7 
Structured accounts payable arrangements850.1 850.1 743.7 743.7 
Short-term debt480.5 480.5 302.8 302.8 
Long-term debt, including current portion3,977.3 4,261.0 3,978.8 4,516.1 
For cash and cash equivalents, accounts receivables, accounts payable, structured accounts payable arrangements, and short-term debt, the carrying amount approximates fair value because of the short-term maturity of those instruments. The fair value of long-term debt, including the current portion, is estimated using quoted market prices for the publicly registered notes and debentures, classified as Level 1 and Level 2, respectively, within the fair value hierarchy, depending on the market liquidity of the debt.
13. Share Repurchases
On August 23, 2021, our Board of Directors authorized a $1.0 billion share repurchase program (the “2021 Repurchase Program”), replacing our 2015 Repurchase Program. The 2021 Repurchase Program allows the Company to repurchase shares of our Common Stock, through open market purchases, accelerated share repurchase arrangements, privately negotiated transactions or otherwise and has no set expiration date. In connection with this authorization, the remaining amount of $700 million authorized under 2015 Repurchase Program was terminated.
On February 24, 2022, pursuant to existing stock repurchase authorizations, we entered into an accelerated share repurchase (“ASR”) agreement with a third-party financial institution to repurchase $400 million of our Common Stock. At inception, we paid the financial institution $400 million and took initial delivery of 7,056,229 shares of our Common Stock. Under the terms of the ASR agreement, upon settlement, we would either receive additional shares from the financial institution or be required to deliver additional shares or cash to the financial institution. In the second quarter of 2022, the ASR agreement was completed and we paid the financial institution an additional $54.2 million. When combining the initial $400 million paid at the inception of the ASR agreement and the cash settlement of $54.2 million at the termination of the ASR agreement, we repurchased approximately 7,056,229 shares at an average repurchase price of $64.37 per share. This ASR will exhaust most of the remaining share repurchase authorization established in the 2021 Repurchase Program. Following the completion of the current authorization, our Board of Director has approved the establishment of a new $1.0 billion share repurchase authorization.
During the quarter ended March 31, 2022, we repurchased 7,589,664 shares of Common Stock in the open market under the 2021 Repurchase Program for approximately $422.1 million. This includes 7,056,229 shares purchased under the ASR agreement.
The extent to which we repurchase our shares and the timing of any such repurchases depend on a number of factors, including market and business conditions, the price of our shares, and corporate, regulatory and other considerations.


14. Accumulated Other Comprehensive Income (Loss)
The following table sets forth the changes in AOCI, net of tax, by component during the three months ended March 31, 2022 and March 31, 2021:
Foreign Currency Translation Gain (Loss)Net Actuarial Gain and Prior Service CostAmortization of Gain on Interest Rate SwapNet Gain (Loss) on Marketable Securities Held in TrustTotal
Three Months Ended March 31, 2022
Balance at December 31, 2021$(1,825.5)$(72.8)$5.2 $1.3 $(1,891.8)
Other comprehensive income (loss)302.5 0.7 0.5 (37.0)266.7 
Tax (expense) benefit2.8 (0.3) 8.6 11.1 
Other comprehensive income (loss), net of tax305.3 0.4 0.5 (28.4)277.8 
Other comprehensive income (loss) attributable to noncontrolling interest(4.3)   (4.3)
Balance as of March 31, 2022$(1,524.5)$(72.4)$5.7 $