Item 2.06. Material Impairments.
On January 28, 2020, The Mosaic Company ("Mosaic," and Mosaic and its
subsidiaries, individually or in any combination, "we," "us" or "our") announced
that it intends to keep its Colonsay potash mine idled for the foreseeable
future (the "Colonsay Idling") due to weak demand. The Company currently
estimates that it will incur a pretax noncash charge to be recorded in the
fourth fiscal quarter of 2019 (the "Fourth Quarter") for the Colonsay Idling of
up to $530 million (primarily non-cash charges for asset write-offs, and
inclusive of cash severance charges of $15 million to $20 million).
The weak demand in North America has also impacted Mosaic's Phosphates segment
and the annual goodwill impairment analysis. The Company currently estimates
that it will incur a notable non-cash charge to be recorded in the Fourth
Quarter of up to $590 million of Phosphates segment goodwill ("Phosphates
Goodwill Impairment").
Furnished herewith as Exhibit 99.1 and incorporated by reference herein is the
text of Mosaic's announcement regarding the Colonsay Idling and the Phosphates
Goodwill Impairment, as presented in a press release issued on January 28, 2020.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
Exhibit No. Description
99.1 Press release, dated January 28, 2020, of The Mosaic Company
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This Current Report on Form 8-K contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such statements
include, but are not limited to, statements about the anticipated benefits or
strategic plans and other statements about anticipated future financial,
production and operating performance. Such statements are based upon the current
beliefs and expectations of The Mosaic Company's management and are subject to
significant risks and uncertainties. These risks and uncertainties include, but
are not limited to: difficulties with realization of the benefits of our
strategic plans; actual costs of various items differing from management's
current estimates, price and demand volatility for our Potash and Phosphate
products, other changes in market conditions, changes in weather conditions;
changes in farmers' planting patterns; accidents and disruptions, including
potential mine fires, floods, explosions, seismic events, sinkholes or releases
of hazardous or volatile chemicals; changes in foreign currency and exchange
rates; international trade risks and other risks associated with Mosaic's
international operations, changes in government policy, changes in environmental
and other governmental regulation, as well as other risks and uncertainties
reported from time to time in The Mosaic Company's reports filed with the
Securities and Exchange Commission. Actual results may differ from those set
forth in the forward-looking statements.
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