10-Q 1 mos-20210930.htm 10-Q mos-20210930
MOSAIC CO0001285785false2021Q312/31378,942,5408,049.98,106.80.010.0115,000,00015,000,0000.010.011,000,000,0001,000,000,000390,779,441389,974,041379,267,122379,091,54422.423.30.0750.050.1500.10Recently 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 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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________
FORM 10-Q
_______________________________________________________________________
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
OR
      TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number 001-32327  
_______________________________________________________________________
The Mosaic Company
(Exact name of registrant as specified in its charter)  
_______________________________________________________________________
 
Delaware20-1026454
(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: 378,942,540 shares of Common Stock as of October 29, 2021.





PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
THE MOSAIC COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (LOSS)
(In millions, except per share amounts)
(Unaudited)
Three months endedNine months ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net sales$3,418.6 $2,381.5 $8,516.4 $6,224.3 
Cost of goods sold2,554.1 2,026.4 6,464.7 5,570.8 
Gross margin864.5 355.1 2,051.7 653.5 
Selling, general and administrative expenses97.7 97.6 307.0 260.6 
Mine closure costs  158.1  
Other operating expense65.2 159.0 87.8 274.8 
Operating earnings701.6 98.5 1,498.8 118.1 
Interest expense, net(47.8)(43.0)(130.1)(133.4)
Foreign currency transaction gain (loss)(100.1)5.8 (34.8)(174.3)
Other income0.6 4.7 5.0 11.6 
Earnings (loss) from consolidated companies before income taxes554.3 66.0 1,338.9 (178.0)
Provision for (benefit from) income taxes176.6 38.1 352.2 (97.6)
Earnings (loss) from consolidated companies377.7 27.9 986.7 (80.4)
Equity in net (loss) of nonconsolidated companies(1.2)(32.5)(13.2)(82.3)
Net earnings (loss) including noncontrolling interests376.5 (4.6)973.5 (162.7)
Less: Net earnings (loss) attributable to noncontrolling interests4.6 1.6 7.7 (0.9)
Net earnings (loss) attributable to Mosaic$371.9 $(6.2)$965.8 $(161.8)
Basic net earnings (loss) per share attributable to Mosaic$0.98 $(0.02)$2.54 $(0.43)
Basic weighted average number of shares outstanding379.8 379.1 379.6 379.0 
Diluted net earnings (loss) per share attributable to Mosaic$0.97 $(0.02)$2.52 $(0.43)
Diluted weighted average number of shares outstanding383.2 379.1 383.0 379.0 
See Notes to Condensed Consolidated Financial Statements
1



THE MOSAIC COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(In millions)
(Unaudited)
Three months endedNine months ended
September 30, 2021September 30, 2020September 30, 2021September 30, 2020
Net earnings (loss) including noncontrolling interest$376.5 $(4.6)$973.5 $(162.7)
Other comprehensive income (loss), net of tax
Foreign currency translation gain (loss)(244.0)59.7 (52.9)(488.4)
Net actuarial gain (loss) and prior service cost(0.1)0.9 4.9 8.7 
Realized gain on interest rate swap0.5 0.4 1.5 1.2 
Net gain (loss) on marketable securities held in trust fund(2.8)(2.3)(17.0)13.6 
Other comprehensive income (loss)(246.4)58.7 (63.5)(464.9)
Comprehensive income (loss)130.1 54.1 910.0 (627.6)
Less: Comprehensive income (loss) attributable to noncontrolling interest2.4 0.9 6.5 (10.2)
Comprehensive income (loss) attributable to Mosaic$127.7 $53.2 $903.5 $(617.4)

See Notes to Condensed Consolidated Financial Statements
2



THE MOSAIC COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except per share amounts)
(Unaudited)
September 30, 2021December 31, 2020
Assets
Current assets:
Cash and cash equivalents$842.8 $574.0 
Receivables, net, including affiliate receivables of $247.8 and $144.8, respectively1,081.5 881.1 
Inventories2,273.6 1,739.2 
Other current assets401.2 326.9 
Total current assets4,599.1 3,521.2 
Property, plant and equipment, net of accumulated depreciation of $8,040.9 and $8,106.8, respectively12,269.2 11,854.3 
Investments in nonconsolidated companies671.1 673.1 
Goodwill1,171.7 1,173.0 
Deferred income taxes1,003.1 1,179.4 
Other assets1,367.3 1,388.8 
Total assets$21,081.5 $19,789.8 
Liabilities and Equity
Current liabilities:
Short-term debt$0.1 $0.1 
Current maturities of long-term debt47.0 504.2 
Structured accounts payable arrangements734.3 640.0 
Accounts payable1,041.5 769.1 
Accrued liabilities1,671.6 1,233.1 
Total current liabilities3,494.5 3,146.5 
Long-term debt, less current maturities3,947.7 4,073.8 
Deferred income taxes1,048.4 1,060.8 
Other noncurrent liabilities2,009.7 1,753.5 
Equity:
Preferred Stock, $0.01 par value, 15,000,000 shares authorized, none issued and outstanding as of September 30, 2021 and December 31, 2020  
Common Stock, $0.01 par value, 1,000,000,000 shares authorized,390,779,441 shares issued and 379,267,122 shares outstanding as of September 30, 2021, 389,974,041 shares issued and 379,091,544 shares outstanding as of December 31, 20203.8 3.8 
Capital in excess of par value866.0 872.8 
Retained earnings11,419.1 10,511.0 
Accumulated other comprehensive loss(1,868.5)(1,806.2)
Total Mosaic stockholders' equity10,420.4 9,581.4 
Noncontrolling interests160.8 173.8 
Total equity10,581.2 9,755.2 
Total liabilities and equity$21,081.5 $19,789.8 
See Notes to Condensed Consolidated Financial Statements
3




THE MOSAIC COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Unaudited)
Nine months ended
September 30, 2021September 30, 2020
Cash Flows from Operating Activities:
Net earnings (loss) including noncontrolling interests$973.5 $(162.7)
Adjustments to reconcile net earnings (loss) including noncontrolling interests to net cash provided by operating activities:
Depreciation, depletion and amortization598.7 639.1 
Deferred and other income taxes147.9 (150.6)
Equity in net loss of nonconsolidated companies, net of dividends16.4 82.2 
Accretion expense for asset retirement obligations52.8 50.7 
Accretion expense for leases10.3 19.0 
Share-based compensation expense24.3 5.2 
Unrealized (gain) loss on derivatives(24.4)7.0 
Foreign currency adjustments(19.1)145.9 
Net proceeds from settlement of interest rate swaps 34.7 
Mine closure costs158.1  
Other(8.0)0.4 
Changes in assets and liabilities:
Receivables, net(221.7)(62.3)
Inventories(574.7)192.4 
Other current and noncurrent assets(86.3)40.3 
Accounts payable and accrued liabilities669.8 410.4 
Other noncurrent liabilities39.0 92.5 
Net cash provided by operating activities1,756.6 1,344.2 
Cash Flows from Investing Activities:
Capital expenditures(925.8)(785.8)
Purchases of available-for-sale securities - restricted(323.3)(499.2)
Proceeds from sale of available-for-sale securities - restricted303.2 489.5 
Purchases of held-to-maturity securities(3.2)(0.7)
Proceeds from sale of held-to-maturity securities0.8 1.7 
Other17.7 (0.2)
Net cash used in investing activities(930.6)(794.7)
Cash Flows from Financing Activities:
Payments of short-term debt(25.0)(1,332.7)
Proceeds from issuance of short-term debt25.0 1,517.3 
Payments of structured accounts payable arrangements(675.7)(848.0)
Proceeds from structured accounts payable arrangements762.7 721.0 
Proceeds from long-term debt 4.7 
Collections of transferred receivables310.3  
Payments of transferred receivables (262.8) 
Payments of long-term debt(594.7)(50.9)
Repurchases of stock(20.0) 
Cash dividends paid(75.9)(56.8)
Dividends paid to non-controlling interest(19.5)(0.5)
Other(3.1)(5.0)
Net cash used in financing activities(578.7)(50.9)
Effect of exchange rate changes on cash17.0 (85.8)
Net change in cash, cash equivalents and restricted cash264.3 412.8 
Cash, cash equivalents and restricted cash - December 31594.4 532.3 
Cash, cash equivalents and restricted cash - September 30$858.7 $945.1 
See Notes to Condensed Consolidated Financial Statements
4



THE MOSAIC COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(In millions)
(Unaudited)
Nine months ended
September 30, 2021September 30, 2020
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$842.8 $923.0 
Restricted cash in other current assets8.6 8.2 
Restricted cash in other assets7.3 13.9 
Total cash, cash equivalents and restricted cash shown in the unaudited condensed consolidated statement of cash flows$858.7 $945.1 
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest (net of amount capitalized of $22.4 and $23.3 for the nine months ended September 30, 2021 and 2020, respectively)$107.3 $110.0 
Income taxes (net of refunds)172.5 (14.7)
See Notes to Condensed Consolidated Financial Statements
5




THE MOSAIC COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
(In millions, except per share amounts)
(Unaudited)
Mosaic Shareholders
SharesDollars
Common StockCommon StockCapital in Excess of Par ValueRetained EarningsAccumulated Other Comprehensive (Loss)Noncontrolling InterestsTotal Equity
Balance as of June 30, 2020379.1 $3.8 $855.4 $9,747.0 $(2,113.2)$170.7 $8,663.7 
Total comprehensive income (loss)— — — (6.2)59.4 0.9 54.1 
Stock based compensation— — 5.8 — — — 5.8 
Dividends ($0.05 per share)— — — (19.2)— — (19.2)
Dividends for noncontrolling interests— — — — — (0.2)(0.2)
Balance as of September 30, 2020379.1 $3.8 $861.2 $9,721.6 $(2,053.8)$171.4 $8,704.2 
Balance as of December 31, 2019378.8 $3.8 $858.4 $9,921.5 $(1,598.2)$182.1 $9,367.6 
Total comprehensive income (loss)— — — (161.8)(455.6)(10.2)(627.6)
Vesting of restricted stock units0.3 — (2.7)— — — (2.7)
Stock based compensation— — 5.5 — — — 5.5 
Dividends ($0.10 per share)— — — (38.1)— — (38.1)
Dividends for noncontrolling interests— — — — — (0.5)(0.5)
Balance as of September 30, 2020379.1 $3.8 $861.2 $9,721.6 $(2,053.8)$171.4 $8,704.2 
Balance as of June 30, 2021379.9 $3.8 $882.6 $11,075.9 $(1,624.3)$177.6 $10,515.6 
Total comprehensive income (loss)— — — 371.9 (244.2)2.4 130.1 
Vesting of restricted stock units — 0.1 — — — 0.1 
Stock based compensation— — 4.3 — — — 4.3 
Share repurchases(0.6)— (21.0)— — — (21.0)
Dividends ($0.075 per share)— — — (28.7)— — (28.7)
Dividends for noncontrolling interests— — — — — (19.2)(19.2)
Balance as of September 30, 2021379.3 $3.8 $866.0 $11,419.1 $(1,868.5)$160.8 $10,581.2 
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)— — — 965.8 (62.3)6.5 910.0 
Stock option exercises— — 3.2 — — — 3.2 
Vesting of restricted stock units0.8 — (10.8)— — — (10.8)
Stock based compensation— — 21.8 — — — 21.8 
Share repurchases(0.6)— (21.0)— — — (21.0)
Dividends ($0.15 per share)— — — (57.7)— — (57.7)
Dividends for noncontrolling interests— — — — — (19.5)(19.5)
Balance as of September 30, 2021379.3 $3.8 $866.0 $11,419.1 $(1,868.5)$160.8 $10,581.2 

See Notes to Condensed Consolidated Financial Statements
6



THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Tables in millions, except per share amounts and as otherwise designated)
(Unaudited)
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 Phosphates 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 Phosphates segment includes our 75% interest in the Miski Mayo Phosphate Mine in Peru. These results are consolidated in the Phosphates segment. The Phosphates segment also includes our 25% interest in the Ma’aden Wa’ad Al Shamal Phosphate Company (the “MWSPC”), a joint venture to develop, own and operate integrated phosphate production facilities in the Kingdom of Saudi Arabia. We market approximately 25% of the MWSPC phosphate production. We recognize our equity in the net earnings or losses relating to MWSPC on a one-quarter lag in our Condensed Consolidated Statements of Earnings (Loss).
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, 2020 (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.
7


THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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.























8

THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
3. Other Financial Statement Data
The following provides additional information concerning selected balance sheet accounts:
September 30, 2021December 31, 2020
Other current assets
Income and other taxes receivable $233.0 $181.4 
Prepaid expenses 92.9 80.4 
Other 75.3 65.1 
$401.2 $326.9 
Other assets
Restricted cash$7.3 $12.3 
MRO inventory137.6 137.7 
Marketable securities held in trust736.2 734.3 
Operating lease right-of-use assets133.4 173.1 
Indemnification asset19.7 23.0 
Long-term receivable44.8 52.6 
Other288.3 255.8 
$1,367.3 $1,388.8 
Accrued liabilities
Payroll and employee benefits $205.4 $195.5 
Asset retirement obligations 212.0 190.2 
Receivable factoring liability47.5  
Customer prepayments (a)
493.3 287.6 
Accrued income and other taxes99.9 83.1 
Operating lease obligation58.1 64.0 
Other 555.4 412.7 
$1,671.6 $1,233.1 
Other noncurrent liabilities
Asset retirement obligations $1,483.2 $1,203.7 
Accrued pension and postretirement benefits154.7 158.5 
Operating lease obligation78.8 109.6 
Unrecognized tax benefits 42.1 46.4 
Other 250.9 235.3 
$2,009.7 $1,753.5 
______________________________
(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.



9

THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 September 30,Nine Months Ended September 30,
2021202020212020
Net income (loss) attributable to Mosaic$371.9 $(6.2)$965.8 $(161.8)
Basic weighted average number of shares outstanding379.8 379.1 379.6 379.0 
Dilutive impact of share-based awards3.4  3.4  
Diluted weighted average number of shares outstanding383.2 379.1 383.0 379.0 
Basic net income (loss) per share attributable to Mosaic$0.98 $(0.02)$2.54 $(0.43)
Diluted net income (loss) per share attributable to Mosaic$0.97 $(0.02)$2.52 $(0.43)
A total of 0.5 million shares of common stock subject to issuance related to share-based awards for the three and nine months ended September 30, 2021 and 1.9 million and 2.4 million for the three and nine months ended September 30, 2020, 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:
September 30, 2021December 31, 2020
Raw materials$223.7 $92.1 
Work in process717.3 634.5 
Finished goods1,186.7 868.2 
Final price deferred(a)
3.8 23.0 
Operating materials and supplies142.1 121.4 
$2,273.6 $1,739.2 
______________________________
(a)Final price deferred is product that has shipped to customers, but the price has not yet been agreed upon.










10

THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
6. Goodwill
Mosaic had goodwill of $1.2 billion as of September 30, 2021 and December 31, 2020, 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, 2020$1,063.2 $97.7 $12.1 $1,173.0 
Foreign currency translation(0.1)(1.2) (1.3)
Balance as of September 30, 2021$1,063.1 $96.5 $12.1 $1,171.7 
We are required to perform our next annual goodwill impairment analysis as of October 31, 2021. 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 carrying value of an investment is impaired on an other-than-temporary basis.
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.



11

THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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.
There were no other-than-temporary impairment write-downs on available-for-sale securities during the nine months ended September 30, 2021.
The estimated fair value of the investments in the RCRA Trusts as of September 30, 2021 and December 31, 2020 are as follows:
September 30, 2021
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Level 1
    Cash and cash equivalents $6.9 $ $ $6.9 
Level 2
    Corporate debt securities198.7 8.0 (0.4)206.3 
    Municipal bonds196.2 7.0 (0.6)202.6 
    U.S. government bonds307.0  (4.6)302.4 
Total$708.8 $15.0 $(5.6)$718.2 
December 31, 2020
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair
Value
Level 1
    Cash and cash equivalents $11.8 $ $ $11.8 
Level 2
    Corporate debt securities193.3 14.0  207.3 
    Municipal bonds190.5 8.8 (0.3)199.0 
    U.S. government bonds300.7 4.7 (0.1)305.3 
Total$696.3 $27.5 $(0.4)$723.4 



12

THE MOSAIC COMPANY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS - (Continued)
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 deemed to be temporary as of September 30, 2021 and December 31, 2020:
September 30, 2021December 31, 2020
(in millions)Fair
Value
Gross
Unrealized
Losses
Fair
Value
Gross
Unrealized
Losses
Securities that have been in a continuous loss position for less than 12 months:
Corporate debt securities$39.3 $(0.4)$1.5 $ 
Municipal bonds41.2 (0.5)16.0 (0.2)
U.S. government bonds253.3 (3.4)120.3 (0.1)
$