Investments in Non-consolidated Companies

12 Months Ended

Dec. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Investments in non-consolidated companies

INVESTMENTS IN NON-CONSOLIDATED COMPANIES

We have investments in various international and domestic entities and ventures. The equity method of accounting is applied to such investments when the ownership structure prevents us from exercising a controlling influence over operating and financial policies of the businesses but still allow us to have significant influence. Under this method, our equity in the net earnings or losses of the investments is reflected as equity in net earnings of non-consolidated companies on our Consolidated Statements of Earnings. The effects of material intercompany transactions with these equity method investments are eliminated, including the gross profit on sales to and purchases from our equity-method investments which is deferred until the time of sale to the final third-party customer. The cash flow presentation of dividends received from equity method investees is determined by evaluation of the facts, circumstances and nature of the distribution.

A summary of our equity-method investments, which were in operation as of December 31, 2022, is as follows:


Entity	Economic Interest
Gulf Sulphur Services LTD., LLLP(a)	50.0	%
River Bend Ag, LLC	50.0	%
IFC S.A.	45.0	%
MWSPC	25.0	%
Canpotex	36.2	%

(a) In the first quarter of 2023, Mosaic assumed ownership of Savage’s 50% equity and now wholly-owns Gulf Sulphur Services LTD., LLLP.

The summarized financial information shown below includes all non-consolidated companies carried on the equity method.


	Years Ended December 31,
(in millions)	2022		2021		2020
Net sales	$	11,852.8	$	4,758.2	$	3,463.2
Net earnings (loss)	956.9		70.1		(405.3)
Mosaic’s share of equity in net earnings (loss)	196.0		7.8		(93.8)
Total assets	11,707.8		10,685.6		8,944.4
Total liabilities	8,973.7		8,864.7		7,184.9
Mosaic’s share of equity in net assets	693.2		466.9		452.5

The difference between our share of equity in net assets as shown in the above table and the investment in non-consolidated companies as shown on the Consolidated Balance Sheets is mainly due to the July 1, 2016, equity contribution of $120 million we made to MWSPC, representing the remaining liability for our portion of mineral rights value transferred to MWSPC from Saudi Arabian Mining Company (“Ma’aden”). As of December 31, 2022, MWSPC represented 70% of the total assets and 62% of the total liabilities in the table above. MWSPC commenced ammonia operations in late 2016 and, on December 1, 2018, commenced commercial operations of its DAP plant, thereby bringing the entire project to the commercial production phase. In 2022, 2021 and 2020 our share of equity in net earnings (loss) was $194.5 million, $5.0 million, and $(97.3) million, respectively.

MWSPC owns and operates a mine and two chemical complexes that produce phosphate fertilizers and other downstream phosphates products in the Kingdom of Saudi Arabia. The cost to develop and construct the integrated phosphate production facilities (the “Project”) was approximately $8.0 billion, which has been funded primarily through investments by us, Ma’aden and SABIC (together, the “Project Investors”), and through borrowing arrangements and other external project financing facilities (“Funding Facilities”). We market approximately 25% of the phosphate production of the joint venture.

On June 20, 2020, MWSPC refinanced its commercial loans while retaining its loans with the Saudi Industrial Development Fund. The refinancing extended debt repayment to 2037 and deferred principal payments until June 30, 2022. The refinancing removes recourse to Mosaic by all lenders to MWSPC. Mosaic’s contractual commitment to make future cash contributions to MWSPC was also eliminated.

As of December 31, 2022, our cash investment was $770 million. We have not made any contributions since 2017 and do not expect future contributions will be needed.

Canpotex is a Saskatchewan export association used by two Canadian potash producers to market, sell and distribute Canadian potash products outside of Canada and the U.S. to unrelated third party customers at market prices. It operates as a break-even entity. We have concluded that the sales to Canpotex are not at arms’-length, due to the unique pricing and payment structure and financial obligations of the stockholders. Therefore, the full profit on sales to Canpotex is eliminated until Canpotex no longer has control of the related inventory and has sold it to an unrelated third party customer. We eliminate the intra-entity profit with Canpotex at the end of each reporting period and present that profit elimination by reversing revenue and cost of goods sold for the inventory still remaining at Canpotex. Any equity earnings or loss, which have historically been insignificant, are recorded in the equity in net earnings or loss line within the Consolidated Statement of Earnings.