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Pension Plans and Other Benefits | 12 Months Ended
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Dec. 31, 2023
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] |
Pension Plans And Other Benefits | PENSION PLANS AND OTHER BENEFITS We sponsor pension and postretirement benefits through a variety of plans, including defined benefit plans, defined contribution plans and postretirement benefit plans in North America and certain of our international locations. We reserve the right to amend, modify or terminate the Mosaic sponsored plans at any time, subject to provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), prior agreements and our collective bargaining agreements. Defined Benefit During fiscal 2022, we terminated the defined benefit pension plan in the U.S, which was frozen at the time of termination. In connection with the plan termination, we settled all future obligations under the terminated plan through a combination of lump-sum payments to eligible participants who elected to receive them through a lump-sum window, and the transfer of any remaining benefit obligations under the terminated plans to a third-party insurance company under a group annuity contract. As a result of these actions, we recognized a non-cash pre-tax pension settlement charge of $41.9 million in our 2022 Consolidated Statements of Earnings (Loss) in Other (expense) income. Upon completion of the remaining obligations related to the terminated plan, the remaining over-funded plan assets of $18.6 million as of December 31, 2023 will be utilized to fund obligations associated with other qualified retirement plans. We sponsor various defined benefit pension plans in Canada. Benefits are based on different combinations of years of service and compensation levels, depending on the plan. Generally, contributions to Canadian plans are made in accordance with the Pension Benefits Act instituted by the province of Saskatchewan. Certain employees in Canada, whose pension benefits exceed Canada Revenue Agency limitations, are covered by supplementary non-qualified, unfunded pension plans. During fiscal 2023, we terminated certain defined pension plans in Canada by transferring remaining benefit obligations for participants to a third-party insurance company under a group annuity contract. As a result of these actions, we recognized a non-cash pre-tax settlement charge of $42.4 million in our 2023 Consolidated Statements of Earnings (Loss) in Other (expense) income. We sponsor various defined benefit pension plans in Brazil, and we acquired multi-employer pension plans for certain of our Brazil associates. All our pension plans are governed by the Brazilian pension plans regulatory agency, National Superintendence of Supplementary Pensions. Our Brazil plans are not individually significant to the Company’s consolidated financial statements after factoring in the multi-employer pension plan indemnification that we acquired through an acquisition. We made contributions to these plans, net of indemnification, of $0.1 million and $0.2 million for the years ended December 31, 2023 and 2022, respectively. Accounting for Pension Plans The year-end status of the North American pension plans was as follows (the 2023 presentation excludes the terminated U.S. defined benefit plans, which had an ending benefit obligation of $0.0 million and $5.2 million as of December 31, 2023 and 2022, respectively, and ending plan assets of $18.6 million and $16.6 million as of December 31, 2023 and 2022, respectively):
| Pension Plans
| Years Ended December 31,
(in millions) | 2023 |  | 2022
Change in projected benefit obligation: |  |  |
Benefit obligation at beginning of period | $ | 294.3 |  |  | $ | 739.6 |
Service cost | 2.8 |  |  | 4.2 |
Interest cost | 11.1 |  |  | 16.8 |
Actuarial (gain) loss | 3.3 |  |  | (158.8) |
Currency fluctuations | 2.0 |  |  | (19.0) |
Benefits paid and transfers | (190.4) |  |  | (322.2) |
Plan amendments | 5.8 |  |  | — |
Liability (gain)/loss due to curtailment/settlement | (9.3) |  |  | 38.9 |
Projected benefit obligation at end of period | $ | 119.6 |  |  | $ | 299.5 |
Change in plan assets: |  |  |
Fair value at beginning of period | $ | 329.0 |  |  | $ | 807.0 |
Currency fluctuations | 2.9 |  |  | (21.3) |
Actual return | 11.4 |  |  | (124.9) |
Company contribution | 4.2 |  |  | 7.0 |
Benefits paid and transfers | (190.4) |  |  | (322.2) |
Fair value at end of period | $ | 157.1 |  |  | $ | 345.6 |
Funded status of the plans as of the end of period | $ | 37.5 |  |  | $ | 46.1 |
Amounts recognized in the consolidated balance sheets: |  |  |
Noncurrent assets | $ | 43.8 |  |  | $ | 52.9 |
Current liabilities | (0.5) |  |  | (0.5) |
Noncurrent liabilities | (5.8) |  |  | (6.3) |
Amounts recognized in accumulated other comprehensive (income) loss |  |  |
Prior service cost | $ | 15.1 |  |  | $ | 10.9 |
Actuarial loss | 20.0 |  |  | 67.2 |
The accumulated benefit obligation for the defined benefit pension plans was $119.6 million and $299.1 million as of December 31, 2023 and 2022, respectively. In 2024, we expect the related plans to pay benefit payments of approximately $3.9 million and to contribute cash of at least $0.8 million to the pension plans to meet minimum funding requirements. Plan Assets and Investment Strategies The Company’s overall investment strategy is to obtain sufficient return and provide adequate liquidity to meet the benefit obligations of our pension plans. The primary investment objective is to secure the promised pension benefits through capital preservation and appreciation to better manage the asset/liability gap and interest rate risk. A secondary investment objective is to most effectively manage investment volatility to reduce the variability of the Company’s required contributions. A significant amount of the assets are invested in funds that are managed by Mosaic’s investment advisor and reviewed by Mosaic management. Plan assets are primarily valued based on external pricing sources and are classified as Level 2. We do not have significant concentrations of credit risk or industry sectors within the plan assets. Fair value measurements of plan assets was $157.1 million at December 31, 2023 and was invested approximately 75% in fixed income securities, 20% in equity securities, and 5% in cash. Defined Contribution Plans Eligible salaried and non-union hourly employees in the U.S. participate in a defined contribution investment plan which permits employees to defer a portion of their compensation through payroll deductions and provides matching contributions. We match 100% of the first 3% of the participant’s contributed pay plus 50% of the next 3% of the participant’s contributed pay, subject to Internal Revenue Service limits. Participant contributions, matching contributions and the related earnings immediately vest. Mosaic also provides an annual non-elective employer contribution feature for eligible salaried and non-union hourly employees based on the employee’s age and eligible pay. Participants are generally vested in the non-elective employer contributions after three years of service. In addition, a discretionary feature of the plan allows the Company to make additional contributions to employees. Certain union employees participate in a defined contribution retirement plan based on collective bargaining agreements. Canadian salaried and non-union hourly employees participate in an employer funded plan with employer contributions similar to the U.S. plan. The plan provides a profit sharing component which is paid each year. We also sponsor one mandatory union plan in Canada. Benefits in these plans vest after two years of consecutive service. The expense attributable to defined contribution plans in the U.S. and Canada was $61.7 million, $55.7 million and $55.8 million for 2023, 2022 and 2021, respectively. Postretirement Medical Benefit Plans We provide certain health care benefit plans for certain retired employees (“Retiree Health Plans”) which may be either contributory or non-contributory and contain certain other cost-sharing features such as deductibles and coinsurance. The North American Retiree Health Plans are unfunded and the projected benefit obligation was $22.8 million and $22.6 million as of December 31, 2023 and 2022, respectively. This liability should continue to decrease due to our limited exposure. The related income statement effects of the Retiree Health Plans are not material to the Company. We anticipate contributing cash of at least $2.2 million in 2024 to the postretirement medical benefit plans to fund anticipated benefit payments. The year-end status of the Brazil postretirement medical benefit plans with a discount rate of 10.40% and 10.30% on each of December 31, 2023 and 2022, respectively was as follows:
| Postretirement Medical Benefits
| Years Ended December 31,
(in millions) | 2023 |  | 2022
Change in accumulated postretirement benefit obligation (“APBO”): |  |  |
APBO at beginning of year | $ | 59.1 |  |  | $ | 58.0 |
Service cost | 0.1 |  |  | 0.1 |
Interest cost | 6.2 |  |  | 5.8 |
Actuarial (gain) loss | 4.8 |  |  | (7.6) |
Currency fluctuations | 5.4 |  |  | 3.8 |
Benefits paid | (1.2) |  |  | (1.0) |
APBO at end of year | $ | 74.4 |  |  | $ | 59.1 |
Change in plan assets: |  |  |
Company contribution | $ | 1.2 |  |  | $ | 1.0 |
Benefits paid | (1.2) |  |  | (1.0) |
Unfunded status of the plans as of the end of the year | $ | (74.4) |  |  | $ | (59.1) |
Amounts recognized in the consolidated balance sheets: |  |  |
Current liabilities | $ | (1.1) |  |  | $ | (1.2) |
Noncurrent liabilities | (73.3) |  |  | (57.9) |
Amounts recognized in accumulated other comprehensive income |  |  |
Prior service credit | $ | (13.2) |  |  | $ | (14.1) |
Actuarial loss | $ | 11.9 |  |  | $ | 6.6 |

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