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Marketable Securities Held in Trusts | 9 Months Ended
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Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract] |
Marketable Securities Held in Trusts | 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 September 30, 2023, 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 September 30, 2023 and December 31, 2022 are as follows:
| September 30, 2023
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Level 1 |  |  |  |  |  |  |
Cash and cash equivalents | $ | (0.2) |  |  | $ | — |  |  | $ | — |  |  | $ | (0.2) |
Level 2 |  |  |  |  |  |  |
Corporate debt securities | 205.1 |  |  | — |  |  | (15.4) |  |  | 189.7 |
Municipal bonds | 207.2 |  |  | — |  |  | (10.8) |  |  | 196.4 |
U.S. government bonds | 272.2 |  |  | — |  |  | (9.1) |  |  | 263.1 |
Total | $ | 684.3 |  |  | $ | — |  |  | $ | (35.3) |  |  | $ | 649.0 |
| December 31, 2022
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Fair Value
Level 1 |  |  |  |  |  |  |
Cash and cash equivalents | $ | 7.7 |  |  | $ | — |  |  | $ | — |  |  | $ | 7.7 |
Level 2 |  |  |  |  |  |  |
Corporate debt securities | 203.8 |  |  | 0.1 |  |  | (17.1) |  |  | 186.8 |
Municipal bonds | 197.0 |  |  | 0.4 |  |  | (8.0) |  |  | 189.4 |
U.S. government bonds | 269.6 |  |  | — |  |  | (3.6) |  |  | 266.0 |
Other holdings | 0.2 |  |  | — |  |  | — |  |  | 0.2 |
Total | $ | 678.3 |  |  | $ | 0.5 |  |  | $ | (28.7) |  |  | $ | 650.1 |
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 September 30, 2023 and December 31, 2022:
| September 30, 2023 |  | December 31, 2022
(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 | $ | 62.1 |  |  | $ | (1.9) |  |  | $ | 105.6 |  |  | $ | (6.5) |
Municipal bonds | 102.1 |  |  | (3.3) |  |  | 104.7 |  |  | (2.9) |
U.S. government bonds | 262.3 |  |  | (9.1) |  |  | 264.9 |  |  | (3.5) |
| $ | 426.5 |  |  | $ | (14.3) |  |  | $ | 475.2 |  |  | $ | (12.9) |
Securities that have been in a continuous loss position for more than 12 months: |  |  |  |  |  |  |
Corporate debt securities | $ | 124.4 |  |  | $ | (13.5) |  |  | $ | 72.8 |  |  | $ | (10.6) |
Municipal bonds | 91.3 |  |  | (7.5) |  |  | 61.9 |  |  | (5.1) |
U.S. government bonds | — |  |  | — |  |  | 0.8 |  |  | (0.1) |
| $ | 215.7 |  |  | $ | (21.0) |  |  | $ | 135.5 |  |  | $ | (15.8) |
The following table summarizes the balance by contractual maturity of the available-for-sale debt securities invested by the RCRA Trusts as of September 30, 2023. 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.
| September 30, 2023
Due in one year or less | $ | 16.8 |
Due after one year through five years | 264.2 |
Due after five years through ten years | 331.4 |
Due after ten years | 36.8 |
Total debt securities | $ | 649.2 |
For the three and nine months ended September 30, 2023, realized gains were $0.1 million and $9.2 million, respectively, and realized losses were $5.7 million and $20.9 million, respectively. For the three and nine months ended September 30, 2022, realized gains were $0.1 million and $0.3 million, respectively, and realized losses were $1.0 million and $26.8 million, respectively.

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