Since forming in 2004, Mosaic has grown to be a global leader in phosphates and potash crop nutrition.
We are proud to be a competitive, low-cost producer with strong customer relationships, and the financial strength to invest in growth and innovation. And we’ve led the industry in developing high-quality premium products that help growers succeed. None of Mosaic’s success would be possible without our greatest asset—our people.
Each person at Mosaic contributes to our company strategy: to win in our core businesses of phosphates, potash and international distribution, and to grow in new ways. And we conduct our critical work with an emphasis on abiding integrity and excellence, for the benefit of all our stakeholders.
(G4-56) No matter where Mosaic operates in the world, we ask that our employees adhere to the same companywide values. This common sense of purpose and responsibility ensures that we approach our work with a shared goal.
(G4-6) We mine phosphate rock in Florida and process rock into finished phosphate products at facilities in Florida and Louisiana. We mine potash in Saskatchewan and New Mexico. We have other production, blending or distribution operations in Brazil, China, India and Paraguay, as well as strategic equity investments in a phosphate rock mine in the Bayovar region in Peru and a joint venture formed to develop a phosphate rock mine and chemical complexes in the Kingdom of Saudi Arabia.
Mosaic conducts business through wholly and majority-owned subsidiaries, as well as businesses in which we own less than a majority or a non-controlling interest. In 2015, we realigned our business segments to reflect our evolving business model and now report our financial results through three operating segments: Phosphates, Potash and International Distribution. Additional information about our business and operating segments is provided in our 10-K Report (Page 1).
(G4-MM8) We mine phosphate rock and potash, which are less suited to artisanal or small-scale mining (as compared to precious metals, for example). In 2015, no artisanal or small-scale phosphate or potash mining took place on, or, to our knowledge, adjacent to any Mosaic site. Our mine operations are capital intensive, and therefore, risks are required to be defined and managed well before any mining occurs.
Sustainability Governance
Responsibility is one of Mosaic’s guiding principles. We are committed to making informed choices that improve our corporate governance, financial strength, operational efficiency, environmental stewardship, community engagement and resource management. Through these efforts, we intend to sustain our business and experience lasting success.
We encourage each person at Mosaic to act responsibly and contribute to our company’s success. It’s our collective decisions and actions that must be ethical, strategic and sustainable. Together, we can create shared value and reduce our impacts.
Sustainability leadership begins with our Board of Directors. The Environmental Health, Safety and Sustainable Development (EHSS) Committee of the Mosaic Board of Directors provides oversight of our environmental, health, safety and sustainable development strategic vision and performance, including:
- safety and health of employees and contractors,
- environmental performance,
- systems and processes designed to manage EHSS risks, commitments, public responsibilities and compliance,
- relationships with and impact on communities with respect to EHSS matters,
- public policy and advocacy strategies related to EHSS issues, and
- achieving societal support of major projects.
View The EHSS Committee Charter for more information. The Board and Senior Leadership Team review the EHSS Committee’s recommendations in order to develop new companywide policies, initiatives, targets and goals. A team of employees, overseen by a Director of Sustainability, manages sustainability initiatives on a day-to-day basis.
In 2015, we were once again named to the CDP Climate A List
The Mosaic Company Senior Leadership Team (SLT), led by our President and Chief Executive Officer, is primarily responsible for managing profit and loss and delivering growth. Implementation and delivery of Mosaic’s business strategy and plan are monitored by SLT members. The SLT is supported in matters of sustainability by leading vice president and director-level employees who are accountable for ensuring the goals are achieved through site-specific, business segment and companywide implementation.
Mosaic participates in a number of sustainability initiatives:
- United Nations Global Compact (UNGC): Committing to 10 principles in the areas of human rights, labor, the environment and anti-corruption;
- CDP and CDP Water (formerly named Carbon Disclosure Project): Improving transparency and performance with respect to greenhouse gas emissions and water;
- Global Reporting Initiative (GRI): Promoting the use of sustainability reporting as a way for organizations to become more sustainable and contribute to sustainable development, and
- Dow Jones Sustainability Index (DJSI), IW Financial, Trucost, Vigeo, Corporate Knights, and Newsweek in partnership with Corporate Knights Capital: Providing data and information for analysis.
Sustainability Leadership
In addition to participating in several voluntary reporting initiatives in 2015, Mosaic earned recognition for our sustainability disclosure and performance practices.
Our Leadership on Climate Change
(G4-EC2) Mosaic’s “Commitment on Climate Change” acknowledges that global climate change creates uncertainty for our business and poses challenges for the health and well-being of the world’s populations—ecologically, socially and economically.
The potential financial implications with regard to the physical changes associated with climate change, as well as potential regulatory response changes, are discussed in Mosaic’s CDP response and in Mosaic’s 10-K Report.
G4-DMA: We are focused on executing against our strategic priorities: developing, engaging and empowering our people; growing and strengthening our business; and creating value for stakeholders. Mosaic’s sustainability targets are closely aligned with our operational and financial goals. We respond annually to CDP and use the Global Reporting Initiative (GRI) framework with the Mining and Metals Sector Supplement to report on our environmental and sustainability performance.
(G4-EC1) Our Economic Value Generated and Distributed
Economic Performance
in Millions
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| Revenue | $11,107.8 | $9,974.1 | $9,021.4 | $9,055.8 | $8,895.3 |
Operating Costs
in Millions
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| Cost of Goods Sold | $8,022.8 | $7,213.9 | $7,006.0 | $7,129.2 | $7,177.4 |
| Selling, General and Administrative Expenses | $410.1 | $427.3 | $393.5 | $382.4 | $361.2 |
| Less: Unrealized (Gain)/Loss on Derivatives | $41.9 | $(15.2) | $(0.4) | $32.0 | $31.9 |
| Less: Depreciation, Depletion and Amortization | $508.1 | $604.8 | $655.6 | $750.9 | $739.8 |
| *Less: Wages and Benefits | $843.1 | $935.9 | $927.8 | $1,429.3 | $1,441.5 |
| Total Operating Costs | $7,039.8 | $6,115.7 | $5,816.5 | $5,299.4 | $5,325.4 |
| Wages and Benefits | $843.1 | $935.9 | $927.8 | $1,429.3 | $1,441.5 |
Payments to Providers of Funds
in Millions
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| Dividends Paid | $119.5 | $426.6 | $427.1 | $382.5 | $384.7 |
| Payments for Share Repurchases | $1,162.5 | - | - | $2,755.3 | $709.5 |
| Interest Paid (Net of Amount Capitalized) | $21.0 | - | $6.9 | $121.9 | $126.2 |
| Total Payments to Providers of Funds | $140.5 | $1,303.0 | $434.0 | $3,259.7 | $1220.4 |
| Retained Earnings | $10,141.3 | $11,603.4 | $11,182.1 | $11,168.9 | $11,014.8 |
Tax (Payment to Government)
in Millions
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| United States | $272.7 | $175.8 | $155.1 | $(5.5)* | $79.4 |
| Canada | $211.9 | $123.2 | $107.6 | $87.9 | $112.8 |
| Brazil | $2.2 | $2.9 | $3.0 | $2.7 | $2.0 |
| Other | $29.6 | $(2.0) | $(0.2) | $28.1 | $7.0 |
| Total Income Taxes Paid | $516.4 | $299.9 | $265.5 | $113.2 | $193.3 |
*CY2014 U.S. tax payments decreased due to CY2013 overpayments and refunds.
| Canadian Resource Taxes and Royalties Expense** | $327.1 | $307.9 | $235.2 | $195.0 | $281.3 |
|---|
**Represents tax expense during the period, not cash payments.
Our Value to Neighbors and Partners Through Community Investment
We believe it is our responsibility to utilize our financial resources, technical expertise and innovative spirit to help the world sustainably grow the food it needs through strategic partnerships with leading organizations. The combined 2015 contributions by The Mosaic Company, The Mosaic Company Foundation and The Mosaic Institute in Brazil provided approximately $16 million of support through companywide philanthropic grant making, the United Way campaign's dollar-for-dollar match, in-kind products and services contributions, and paid employee volunteerism, including pro bono, skills-based technical assistance and functional-specific services. Please see G4-EC8 for more information.
Our community investments are allocated to align with the size of our operations and industrial footprint in each of our locations. Mosaic uses an online grant application system to receive and evaluate proposals for funding. By accessing the online grant application system, potential grantees are able to review Mosaic’s focus areas, grant making guidelines, application deadlines and our non-discrimination policy. Establishing a standardized grant making system with stated guidelines and policies online has provided greater transparency to our partners, shareholders, employees and communities. Through this system, grantees provide reports on their outcomes, enabling Mosaic to evaluate the effectiveness of each grant.
View details on our 2015 Community Investments & Partnerships.
Community Investments Focus:
Mosaic makes community investments in the areas of food, water and local initiatives.
- Food: Mosaic is committed to supporting organizations that advance global agricultural development, agricultural research and education, and hunger relief for community members in need. These programs, respectively, include: The Mosaic Villages Project in Guatemala and India; micronutrient deficiency research and mobile soil testing labs; and food drives, food distribution trucks and school back-pack programs.
- Water: Mosaic supports organizations that work in watershed restoration, habitat conservation and nutrient stewardship. These programs, respectively, include: shoreline restoration and oyster reef installations; improved land management practices and wildlife protection; and 4R nutrient stewardship, which is best management practices for fertilizer application, minimizing field runoff and improving farmer yields.
- Local: Mosaic supports philanthropic or civic partnerships that enrich the long-term strength of communities in which Mosaic has offices and operations. These programs, respectively, include: local schools, health care institutions, museums; special projects and sponsorship of events; and housing and disaster relief.
(G4-EC3)
Our Defined Benefit Plan
Benefit Plan Obligation
in Millions
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
|---|---|---|---|---|---|
| Pension Plan Obligation | $743.3 | $788.6 | $728.0 | $828.4 | $731.2 |
| Fair Value of Plan Assets | $654.4 | $707.6 | $736.9 | $812.1 | $726.7 |
Note: Please refer to the discussion of our defined benefit pension plans in our 10-K report.
Pension Plan Asset Allocation
| U.S. Pension Plans | |||||
| Assets as of 5/31/2012 | Assets as of 5/31/2013 | Assets as of 12/31/2013 | Assets as of 12/31/2014 | Assets as of 12/31/2015 | |
| Fixed Income | 77% | 74% | 75% | 77% | 95% |
| U.S. Equity Securities | 11% | 13% | 12% | 12% | 2% |
| Non-U.S. Equity Securities | 6% | 7% | 7% | 7% | 2% |
| Real Estate | 4% | 4% | 4% | 4% | 0% |
| Private Equity | 2% | 1% | 2% | 0% | 1% |
| Other | 0% | 1% | 0% | 0% | 0% |
| 100% | 100% | 100% | 100% | 100% | |
| Canadian Pension Plans | |||||
| Assets as of 5/31/2012 | Assets as of 5/31/2013 | Assets as of 12/31/2013 | Assets as of 12/31/2014 | Assets as of 12/31/2015 | |
| Fixed Income | 38% | 37% | 38% | 40% | 39% |
| U.S. Equity Securities | 22% | 21% | 22% | 23% | 22% |
| Canadian Equity Securities | 21% | 20% | 21% | 20% | 20% |
| Non-U.S. Equity Securities | 14% | 14% | 14% | 14% | 15% |
| Private Equity | 3% | 2% | 2% | 1% | 1% |
| Other | 2% | 6% | 3% | 2% | 3% |
| 100% | 100% | 100% | 100% | 100% | |
| Investment Plan and Savings Plan | |||||
| FY2012 | FY2013 | 2013 | 2014 | 2015 | |
| Attributable Expense | $30.0* | $34.5* | $35.2 | $51.5 | $55.1 |
*Only includes expense for Defined Plans in the United States.
Participation and funding target attainment percentages for our U.S. and Canadian pension plans as of Dec. 31, 2015, are as follows:
Benefit Plan Participation and Target Attainment (as of Dec. 31, 2015)
| Location | Participants | Funding Attainment |
|---|---|---|
| United States (Hourly) | 3,852 | 98.60% |
| United States (Salaried) | 3,844 | 96.00% |
| Colonsay (Hourly) | 637 | 110.00% |
| Colonsay (Salaried) | 69 | 97.00% |
| Esterhazy (Hourly) | 1,499 | 112.00% |
| Esterhazy (Salaried) | 232 | 96.00% |
(G4-EC4) Financial Assistance from Government
2015 Tax Credits and Subsidies
| Country | Type | Amount |
|---|---|---|
| Canada | Research and Development Credit | $10,200,000 |
| United States | Research and Development Credit | $338,000 |
| United States | Energy Credit | $4,400,000 |
| Brazil | Employee Meal and Leave Subsidies | $356,090 |
| Brazil | Maternity Leave Subsidy | $47,703 |
| Brazil | Freight Tax Reduction - SUDENE | $981,403 |
