MOSAIC CO

Previous wording

The following table shows the results of operations for the three months ended March 31, 2024 and March 31, 2023:

Current wording

The following table shows the results of operations for the three and six months ended June 30, 2024 and June 30, 2023:

Previous wording

For the three months ended March 31, 2024, Mosaic had net income of $45.2 million, or $0.14 per diluted share, compared to net income of $434.8 million, or $1.28 per diluted share, for the prior year period. Net sales for the three months ended March 31, 2024 decreased 26% compared to the same period of the prior year, driven primarily by lower average selling prices, as discussed further below. Net income for the three months ended March 31, 2024 was also negatively impacted by a foreign currency transaction loss of $100.3 million, compared to a foreign currency transaction gain of $51.4 million in the prior year period.

Current wording

For the three months ended June 30, 2024, Mosaic had a net loss of $(161.5) million, or $(0.50) per diluted share, compared to net income of $369.0 million, or $1.11 per diluted share, for the prior year period. Net sales for the three months ended June 30, 2024 decreased 17% compared to the same period of the prior year, driven primarily by lower average selling prices, as discussed further below. Net income for the three months ended June 30, 2024 was also negatively impacted by a foreign currency transaction loss of $267.9 million, compared to a foreign currency transaction gain of $148.5 million in the prior year period. In addition, Mosaic had income tax expense of $98.7 million, compared to $108.4 million in the prior year period, primarily related to the accrual of withholding tax on expected foreign distributions.

Previous wording

•Subsequent to quarter end, on April 29, 2024, we entered into an agreement with Saudi Arabian Mining Company (“Ma’aden”) to exchange our 25% ownership of the Ma'aden Wa’ad al Shamal Phosphate Company for 111,012,433 shares of Ma’aden which are currently valued at approximately $1.5 billion. We expect this transaction to close later in 2024.

Current wording

•On April 29, 2024, we entered into an agreement with Saudi Arabian Mining Company (“Ma’aden”) to exchange our 25% ownership of the Ma'aden Wa’ad al Shamal Phosphate Company for 111,012,433 shares of Ma’aden. The shares were valued at approximately $1.5 billion on the date of the agreement. We expect this transaction to close later in 2024.

Previous wording

•During the quarter ended March 31, 2024, we repurchased 3,398,700 shares of Common Stock in the open market for approximately $108.4 million at an average purchase price of $31.89.

Current wording

•During the quarter ended June 30, 2024, we repurchased 1,835,788 shares of Common Stock in the open market for approximately $52.0 million at an average purchase price of $28.33.

Previous wording

In our Phosphate segment, operating results for the three months ended March 31, 2024 were negatively impacted by lower average selling prices and lower sales volumes compared to the prior year period. Although average selling prices were lower than the same period of the prior year, they have trended upwards since the third quarter of 2023, driven by demand and a strong spring application season in North America. Since March 31, 2024, selling prices have softened in North America, as spring buying activity has wound down. Additionally, average selling prices in the current year period were influenced by lower raw material prices, primarily sulfur and ammonia, which are driven by global supply and demand. Sales volumes in the current year period were unfavorably impact by lower production levels resulting from planned maintenance and turnaround activity at our sites. Phosphate operating results were also impacted by an unfavorable product mix, as our sales volumes included a larger proportion of purchased tonnes than the prior year period.

Current wording

Operating results in our Phosphate segment for the six months ended June 30, 2024 were lower than the prior year due to lower sales volumes. Lower sales volumes were driven by planned maintenance and turnaround activity at our sites, as mentioned above in the three month discussion. Operating results for the six month period of the current year were also unfavorably impacted by lower average selling prices. Although selling prices were lower than the prior year period, they have been trending upwards since the third quarter of 2023, driven by strong demand in North America. Additionally, average selling prices in the current year period were influenced by lower raw material costs, primarily sulfur and ammonia. Phosphate operating results were also impacted by an unfavorable product mix, as our sales volumes included a larger proportion of purchased tonnes than the prior year period.

Previous wording

In our Potash segment, operating results for the three months ended March 31, 2024 were unfavorably impacted from lower average selling prices compared to the prior year period, driven by a rebound in global supply. This impact was partially offset by higher sales volumes compared to the prior year period as demand in North America was driven by a strong spring application season in North America in the current year period.

Current wording

Operating results in our Potash segment for the six months ended June 30, 2024 were lower than the prior year. They were driven by lower average selling prices, resulting from a rebound in global supply. This impact was partially offset by higher sales volumes compared to the prior year period, as demand in North America was driven by a strong spring application season and summer fill program in the current year period.

Previous wording

In our Mosaic Fertilizantes segment, operating results for the three months ended March 31, 2024 were favorable compared to the same period in the prior year. While average selling prices and sales volumes declined in the current year period, operating results benefited from lower raw material cost and de-stocking of high priced inventory, which negatively impacted the prior year period. Sales volumes were down compared to the prior year period as a result of deferred customer demand in the Brazil agricultural market.

Current wording

For the six months ended June 30, 2024, operating results in our Mosaic Fertilizantes segment were favorable compared to the same period in the prior year. While average selling prices and sales volumes declined in the current year period, due to the factors mentioned above in the three-month discussion, operating results benefited from lower raw material cost and de-stocking of high-priced inventory, which negatively impacted the prior year period.

Previous wording

The Phosphate segment’s net sales were $1.2 billion for the three months ended March 31, 2024, compared to $1.4 billion for the three months ended March 31, 2023. The decrease in net sales in the current year period was primarily due to lower finished goods sales volumes, which had an unfavorable impact of approximately $125 million, and lower averaged finished goods sales prices, which had an unfavorable impact of approximately $80 million, in each case, compared to the prior year period.

Current wording

The Phosphate segment’s net sales were $1.2 billion for the three months ended June 30, 2024, compared to $1.3 billion for the three months ended June 30, 2023. The decrease in net sales in the current year period was primarily due to lower finished goods sales volumes, which had an unfavorable impact on net sales of approximately $130 million. This was partially offset by higher average finished goods sales prices, which had a favorable impact of approximately $20 million compared to the prior year period.

Previous wording

The average consumed price for ammonia for our North America operations decreased 33% to $404 per tonne for the three months ended March 31, 2024, from $605 in the same period a year ago. The average consumed sulfur price for our North America operations decreased 40%, to $142 per long ton, for the three months ended March 31, 2024, from $236 in the same period a year ago. The purchase prices of these raw materials are driven by global supply and demand. The consumed ammonia and sulfur prices also include transportation, transformation and storage costs.

Current wording

The average consumed price for ammonia for our North America operations decreased 4%, to $424 per tonne, for the three months ended June 30, 2024, from $441 in the same period a year ago. The average consumed sulfur price for our North America operations decreased 29%, to $138 per long ton, for the three months ended June 30, 2024, from $195 in the same period a year ago. The purchase prices of these raw materials are driven by global supply and demand. The consumed ammonia and sulfur prices also include transportation, transformation and storage costs.

Previous wording

The average consumed cost of purchased and produced phosphate rock increased to $81 per tonne for the three months ended March 31, 2024, from $77 per tonne for the three months ended March 31, 2023. For the three months ended March 31, 2024, our North America phosphate rock production increased to 2.4 million tonnes from 2.1 million tonnes during the same period of the prior year.

Current wording

The average consumed cost of purchased and produced phosphate rock increased to $86 per tonne for the three months ended June 30, 2024, from $79 per tonne for the three months ended June 30, 2023. For the three months ended June 30, 2024, our North America phosphate rock production increased to 2.4 million tonnes from 2.2 million tonnes during the same period of the prior year.

Previous wording

The Phosphate segment’s production of crop nutrient dry concentrates and animal feed ingredients decreased 14% for the three months ended March 31, 2024 from the prior year period due to planned maintenance and turnaround activity. As a result, our operating rate for processed phosphate production decreased to 64% for the three months ended March 31, 2024, from 74% for the same period in 2023. At the end of the current period, our Riverview, Florida facility experienced a fire which is expected to have a modest impact on production volumes in April 2024.

Current wording

The Phosphate segment’s production of crop nutrient dry concentrates and animal feed ingredients increased 1% for the three months ended June 30, 2024 from the prior year period. Our operating rate for processed phosphate production increased to 68% for the three months ended June 30, 2024, from 67% for the same period in 2023.

Previous wording

The Phosphate segment’s sales volumes of finished products decreased to 1.6 million for the three months ended March 31, 2024 compared to 1.8 million in the prior year period, due to the impact of planned maintenance and turnaround activity discussed in the Overview.

Current wording

The Phosphate segment’s sales volumes of finished products decreased by 11% for the six months ended June 30, 2024, compared to the same period in the prior year due to the impact of planned maintenance and turnaround activity discussed in the Overview.

Previous wording

Gross margin for the Phosphate segment decreased to $159.4 million for the three months ended March 31, 2024, from $259.3 million for the three months ended March 31, 2023. The decrease in gross margin in the current year period was primarily due to lower sales prices and sales volumes, which unfavorably impacted gross margin by approximately $80 million and $30 million, respectively, compared to the prior year. Gross margin was also unfavorably impacted by approximately $40 million due to higher conversion costs and higher costs of approximately $15 million, related to the timing of planned maintenance and turnaround activity in the current year compared to the prior year period. Additionally, current period gross margin was also unfavorably impacted by approximately $20 million due lower rock sales prices and higher sales volumes at Miski Mayo, higher freight costs of approximately $15 million and approximately $35 million of other costs, primarily related to unfavorable product mix of a higher proportion of purchased tonnes compared to the same period in the prior year. This was partially offset by the favorable impact of lower raw material costs, primarily sulfur and ammonia, of approximately $130 million.

Current wording

Gross margin for the Phosphate segment decreased to $313.1 million for the six months ended June 30, 2024, from $475.5 million for the six months ended June 30, 2023. The decrease in gross margin in the current year period was primarily due to lower sales volumes and prices, which unfavorably impacted gross margin by approximately $80 million and $60 million, respectively. Gross margin was also unfavorably impacted by approximately $70 million due to increased conversion and other plant costs and approximately $35 million related to unfavorable product mix of a higher proportion of purchased tonnes compared to the prior year period. Additionally, current period gross margin was also unfavorably impacted by approximately $40 million, due to lower rock sales volumes and selling prices at Miski Mayo. The timing of idle plant and turnaround costs, which unfavorably impacted gross margin by approximately $15 million versus the prior year period. These impacts were partially offset by lower raw material costs, primarily sulfur and ammonia as discussed below, which favorably impacted gross margin by approximately $140 million.

Previous wording

The Potash segment’s net sales decreased to $643.1 million for the three months ended March 31, 2024, compared to $906.6 million in the same period a year ago. The decrease was primarily due to lower selling prices, which had an unfavorable impact on net sales of approximately $380 million compared to the same period in the prior year. This was partially offset by higher sales volumes in North America, which favorably impacted net sales by approximately $110 million.

Current wording

The Potash segment’s net sales decreased to $663.1 million for the three months ended June 30, 2024, compared to $848.7 million in the same period a year ago. The decrease was primarily due to lower selling prices, which had an unfavorable impact on net sales of approximately $250 million compared to the same period in the prior year. This was partially offset by higher sales volumes in North America, which favorably impacted net sales by approximately $65 million.

Previous wording

Our average finished product selling price was $297 per tonne for the three months ended March 31, 2024, compared to $475 per tonne for the same period a year ago, as a result of the factor described in the Overview.

Current wording

Our average finished product selling price was $283 per tonne for the three months ended June 30, 2024, compared to $392 per tonne for the same period a year ago, as a result of the factor described in the Overview.

Previous wording

The Potash segment’s sales volumes of finished products increased to 2.2 million tonnes for the three months ended March 31, 2024, compared to 1.9 million tonnes in the same period a year ago, due to the factors discussed in the Overview.

Current wording

The Potash segment’s sales volumes of finished products increased to 2.3 million tonnes for the three months ended June 30, 2024, compared to 2.2 million tonnes in the same period a year ago, due to the factors discussed in the Overview.

Previous wording

Gross margin for the Potash segment decreased to $211.7 million for the three months ended March 31, 2024, from $413.3 million in the same period of the prior year. The decrease in gross margin in the current year period is primarily due to lower selling prices, which negatively impacted gross margin by approximately $380 million compared to the prior year period. This decrease was partially offset by higher sales volumes, which favorably impacted gross margin by approximately $80 million compared to the prior year, and lower Canadian resource taxes and royalties of $65 million, as discussed below. Lower idle and turnaround costs favorably impacted gross margin by approximately $15 million compared to the prior year, largely due to the idling of our Colonsay, Saskatchewan mine in the prior year period. Gross margin was also favorably impacted by foreign currency impacts of approximately $10 million in the current year period, compared to the same period in the prior year.

Current wording

Gross margin for the Potash segment decreased to $186.4 million for the three months ended June 30, 2024, from $336.0 million in the same period of the prior year. Lower selling prices decreased gross margin by approximately $250 million versus the prior year period. This decrease was partially offset by higher sales volumes, which favorably impacted gross margin by approximately $60 million compared to the prior year, and lower Canadian resource taxes and royalties of $30 million. In addition, lower idle and turnaround costs favorably impacted gross margin by approximately $15 million compared to the prior year, largely due to the timing of turnarounds.

Previous wording

We had expense of $64.5 million from Canadian resource taxes for the three months ended March 31, 2024, compared to $120.8 million in the same period a year ago. Canadian royalty expense decreased to $10.1 million for the three months ended March 31, 2024, compared to $18.6 million for the three months ended March 31, 2023. The fluctuations in Canadian resource taxes and royalties are a result of a decrease in our sales revenue and margins.

Current wording

We incurred $66.8 million in Canadian resource taxes for the three months ended June 30, 2024, compared to $95.0 million in the same period a year ago. Canadian royalty expense decreased to $10.3 million for the three months ended June 30, 2024, compared to $12.9 million for the three months ended June 30, 2023. The fluctuations in Canadian resource taxes and royalties are a result of a decrease in our sales revenue and margins.

Previous wording

Our operating rate for potash production was 81% for the current year period, compared to 69% in the prior year period. The increased operating rate reflects higher production across our Canadian mines due to higher capability at our Esterhazy mine and our Colonsay mine operating for a portion of the current year period, versus being temporarily idled in the prior year period.

Current wording

Our operating rate was 79% for the current year period, compared to 69% in the prior year period. The increased operating rate in the current year period reflects higher production across our Canadian mines, due to higher capability at our Esterhazy mine and our Colonsay mine operating for a portion of the current year period. Prior year production was impacted by maintenance downtime during the first half of the year.

Previous wording

The Mosaic Fertilizantes segment’s net sales decreased to $886.4 million for the three months ended March 31, 2024, from $1.3 billion in the same period a year ago. The decrease in net sales was due to lower finished product sales prices, which unfavorably impacted net sales by approximately $240 million, and lower finished goods sales volumes, which had an unfavorable impact of approximately $210 million.

Current wording

The Mosaic Fertilizantes segment’s net sales decreased to $1.0 billion for the three months ended June 30, 2024, from $1.4 billion in the same period a year ago. The $369.9 million decrease in net sales was due to approximately $290 million of lower finished product sales prices and approximately $100 million of lower finished goods sales volume. This was partially offset by a $15 million favorable impact from sales of other products, primarily sulfuric acid.

Previous wording

Our average finished product selling price was $517 per tonne for the three months ended March 31, 2024, compared to $646 per tonne for the same period a year ago, due to the decrease in global sales prices as discussed in the Overview.

Current wording

Our average finished product selling price was $478 per tonne for the three months ended June 30, 2024, compared to $595 per tonne for the same period a year ago, due to the decrease in global sales prices as discussed in the Overview.

Previous wording

The Mosaic Fertilizantes segment’s sales volumes of finished products decreased 18% for the three months ended March 31, 2024, compared to the same period a year ago, due to deferred customer demand in Brazil.

Current wording

The Mosaic Fertilizantes segment’s sales volumes of finished products decreased 8% for the three months ended June 30, 2024, compared to the same period a year ago, due to deferred customer demand in the Brazil agricultural market.

Previous wording

The average consumed price for ammonia for our Brazilian operations decreased to $705 per tonne for the three months ended March 31, 2024, compared to $1,150 per tonne in the prior year period. The average consumed sulfur price for our Brazilian operations was $173 per long ton for the three months ended March 31, 2024, compared to $278 per long ton in the prior year period. The purchase prices of ammonia and sulfur are driven by global supply and demand, and also include transportation, transformation and storage costs.

Current wording

The average consumed price for ammonia for our Brazilian operations decreased to $623 per tonne for the three months ended June 30, 2024, compared to $912 per tonne in the prior year period. The average consumed sulfur price for our Brazilian operations was $174 per long ton for the three months ended June 30, 2024, compared to $258 per long ton in the prior year period. The purchase prices of ammonia and sulfur are driven by global supply and demand, and also include transportation, transformation and storage costs.

Previous wording

The Mosaic Fertilizantes segment’s production of crop nutrient dry concentrates and animal feed ingredients increased 4% for the three months ended March 31, 2024 compared to the prior year period. For the three months ended March 31, 2024, our phosphate operating rate increased to 79%, compared to 78% in the same period of the prior year.

Current wording

The Mosaic Fertilizantes segment’s production of crop nutrient dry concentrates and animal feed ingredients increased 4% for the three months ended June 30, 2024, compared to the prior year period. For the three months ended June 30, 2024, our phosphate operating rate increased to 75%, compared to 74% in the same period of the prior year.

Previous wording

For the three months ended March 31, 2024 and 2023, our Brazilian phosphate rock production was 0.9 million tonnes.

Current wording

For the three months ended June 30, 2024, our Brazilian phosphate rock production decreased to 1.0 million tonnes, from 1.1 million tonnes in the prior year period.

Previous wording

Gross margin for the Mosaic Fertilizantes segment increased to $75.2 million for the three months ended March 31, 2024, from $(1.1) million in the same period of the prior year. The increase in gross margin was primarily due to lower costs, which had a favorable impact of $310 million, driven by a decrease in product costs for our distribution business, and lower sulfur and ammonia costs in our production business. This was partially offset by approximately $240 million related to the decrease in average selling prices during the current year period.

Current wording

Gross margin for the six months ended June 30, 2024, increased to $177.0 million from $11.7 million in the same period in the prior year. The increase in gross margin was primarily due to lower costs, which had a favorable impact of $690 million, driven by a decrease in product costs for our distribution business, and lower sulfur and ammonia costs in our production business. This was partially offset by approximately $520 million related to the decrease in average selling prices during the current year period.

Previous wording

For the three months ended March 31, 2024, gross margin for Corporate, Eliminations and Other was $(47.1) million, compared to $(1.1) million for the same period in the prior year. Gross margin was unfavorably impacted by a net unrealized loss on derivatives of approximately $30 million in the current year period, primarily of foreign currency derivatives, compared to a net unrealized loss of approximately $1 million in the prior year period. Sales in China and India, collectively, resulted in revenue of $129.3 million and gross margin of $7.6 million in the current year period, compared to revenue of $266.8 million and gross margin of $(10.8) million in the prior year period. China and India gross margin was favorably impacted by lower product costs in the current year period compared to the prior year which was partially offset by the impact of lower selling prices compared to the prior year period.

Current wording

For the six months ended June 30, 2024, gross margin for Corporate, Eliminations and Other was $(95.0) million, compared to $5.0 million for the same period in the prior year. Gross margin was unfavorably impacted by a $59 million net unrealized loss on derivatives in the current year period, primarily of foreign currency derivatives, compared to a $33 million net unrealized gain in the prior year period. Sales in China and India, collectively, resulted in revenue of$250.1 million and gross margin of$9.9 million in the current year period, compared to revenue of$438.5 million and gross margin of$(55.1) million in the prior year period. China and India gross margin was favorably impacted by lower product costs in the current year period compared to the prior year which was partially offset by the impact of lower selling prices compared to the prior year period.

Previous wording

Selling, general and administrative expenses for the three months ended March 31, 2024 decreased $20.9 million compared to the same period of prior year, primarily due to lower incentive compensation costs of approximately $23 million compared to the prior year period.

Current wording

Selling, general and administrative expenses for the three months ended June 30, 2024 decreased $1.5 million compared to the same period of prior year, primarily due to lower consulting and professional services costs of approximately $13 million compared to the prior year period, partially offset by higher incentive compensation costs of approximately $11 million.

Previous wording

For the three months ended March 31, 2024, we had other operating expense of $119.5 million, compared to other operating income of $1.9 million for the same period of the prior year. The change from the prior year was primarily due to an increase in environmental reserves in our Phosphate segment of approximately $71 million in the current year period. The prior year period included a gain of approximately $57 million related to the sale of the Streamsong Resort.

Current wording

For the six months ended June 30, 2024, we had other operating expense of $151.8 million, compared to $70.1 million for the same period of the prior year. The change from the prior year was primarily due to an increase in environmental reserves in our

Previous wording

For the three months ended March 31, 2024, net interest expense increased to $48.0 million, compared to $41.1 million the same period of the prior year. The increase was primarily due to higher short term debt levels in the current year period.

Current wording

For the three and six months ended June 30, 2024, net interest expense increased to $46.4 million and $94.4 million compared to $36.0 million and $77.1 million for the same periods of the prior year. The increase was primarily due to higher short term debt levels in the current year period.

Previous wording

We recorded a foreign currency transaction loss of $100.3 million for the three months ended March 31, 2024, compared to a gain of $51.4 million for the same period in the prior year. For the three months ended March 31, 2024, the loss was the result of the effect of the strengthening of the U.S. dollar relative to the Brazilian real on significant intercompany loans and U.S. dollar-denominated payables held by our Brazilian subsidiaries, and the impact of the U.S. dollar relative to the Canadian dollar on significant intercompany loans.

Current wording

We recorded a foreign currency transaction loss of $267.9 million and $368.2 million for the three and six months ended June 30, 2024, compared to a gain of $148.5 million and $199.9 million for the same periods in the prior year. The current year losses were primarily the result of unrealized foreign currency impacts resulting from the strengthening of the U.S. dollar relative to the Brazilian real on significant intercompany loans and U.S. dollar-denominated payables held by our Brazilian subsidiaries, and the impact of the U.S. dollar relative to the Canadian dollar on significant intercompany loans.

Previous wording

For the three months ended March 31, 2024, we had equity in net earnings of nonconsolidated companies of $37.5 million compared to $31.3 million for the same period in the prior year. These results were primarily related to the operations of MWSPC.

Current wording

For the three and six months ended June 30, 2024, we had equity in net earnings of nonconsolidated companies of $22.2 million and $59.7 million compared to $12.9 million and $44.2 million for the same period in the prior year. These results were primarily related to the operations of MWSPC.

Previous wording

For the three months ended March 31, 2024, income tax expense was $6.2 million and the effective tax rate was 24.6%.

Current wording

Income tax expense was $98.7 million and $104.9 million, and the effective tax rate was (132.7)% and (213.2)% for the three and six months ended June 30, 2024.

Previous wording

For the three months ended March 31, 2024, discrete tax items recorded in tax expense was a benefit of approximately $0.8 million. The net tax benefit consisted primarily of share-based excess benefit, true up of estimates and other miscellaneous costs. In addition to items specific to the period, our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, by a benefit associated with depletion, changes in valuation allowances, withholding tax expense and by the impact of certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits for various taxes incurred.

Current wording

For the three and six months ended June 30, 2024, discrete tax items recorded in tax expense was an expense of approximately $120.1 million and $119.4 million, respectively. The net tax expense consisted primarily of the impact of accruing withholding tax expense on expected foreign distributions associated with changes in management’s indefinite reinvestment assertion on select foreign earnings under ASC 740-30 (formerly APB 23), share-based excess benefit, true-up of estimates, and other miscellaneous costs. In addition to items specific to the period, our income tax rate is impacted by the mix of earnings across the jurisdictions in which we operate, by a benefit associated with depletion, and by the impact of certain entities being taxed in both their foreign jurisdiction and the U.S., including foreign tax credits for various taxes incurred.

Previous wording

As of March 31, 2024, we had cash and cash equivalents of $336.7 million, short-term debt of $1.2 billion, long-term debt, including current maturities, of approximately $3.4 billion, and stockholders’ equity of approximately $12.2 billion. We have a target liquidity buffer of up to $3.0 billion, including cash and available committed and uncommitted credit lines. We expect our liquidity to fluctuate from time to time, especially in the first quarter of each year, to manage through the seasonality of our business. We also target debt leverage ratios that are consistent with investment grade credit metrics. Our capital allocation priorities include maintaining our target investment grade metrics and financial strength, sustaining our assets, including ensuring the safety of our employees and reliability of our assets, investing to grow our business, either through organic growth or taking advantage of strategic opportunities, and returning excess cash to shareholders, including paying our dividend. During the three months ended March 31, 2024, we returned cash to shareholders through share repurchases of $108.4 million and cash dividends of $69.7 million, and invested $383.0 million in capital expenditures.

Current wording

As of June 30, 2024, we had cash and cash equivalents of $322.0 million, short-term debt of $0.9 billion, long-term debt, including current maturities, of approximately $3.3 billion, and stockholders’ equity of approximately $11.8 billion. We have a target liquidity buffer of up to $3.0 billion, including cash and available committed and uncommitted credit lines. We expect our liquidity to fluctuate from time to time, especially in the first quarter of each year, to manage through the seasonality of our business. We also target debt leverage ratios that are consistent with investment grade credit metrics. Our capital allocation priorities include maintaining our target investment grade metrics and financial strength, sustaining our assets, including ensuring the safety of our employees and reliability of our assets, investing to grow our business, either through organic growth or taking advantage of strategic opportunities, and returning excess cash to shareholders, including paying our dividend. During the six months ended June 30, 2024, we returned cash to shareholders through share repurchases of $160.4 million and cash dividends of $137.4 million, and invested $716.9 million in capital expenditures.

Previous wording

Funds generated by operating activities, available cash and cash equivalents, and our credit facilities continue to be our most significant sources of liquidity. We believe funds generated from the expected results of operations and available cash, cash equivalents and borrowings under our committed and uncommitted credit facilities, as needed, will be sufficient to finance our operations, including our capital expenditures, existing strategic initiatives, debt repayments and expected dividend payments, for the next 12 months and beyond. There can be no assurance, however, that we will continue to generate cash flows at or above current levels. As of March 31, 2024, we had $2.49 billion available under our $2.50 billion committed revolving credit facility, approximately $650.0 million available under our uncommitted facilities and had $1.8 billion available under our $2.5 billion commercial paper program that is backed by the revolving credit facility. We consider amounts borrowed under our commercial paper program as a reduction of availability under our revolving credit facility. Our credit facilities, including the revolving credit facility, require us to maintain certain financial ratios, as discussed in Note 11 of our Notes to Consolidated Financial Statements in our 10-K Report. We were in compliance with these ratios as of March 31, 2024.

Current wording

Funds generated by operating activities, available cash and cash equivalents, and our credit facilities continue to be our most significant sources of liquidity. We believe funds generated from the expected results of operations and available cash, cash equivalents and borrowings under our committed and uncommitted credit facilities, as needed, will be sufficient to finance our operations, including our capital expenditures, existing strategic initiatives, debt repayments and expected dividend payments, for the next 12 months and beyond. There can be no assurance, however, that we will continue to generate cash flows at or above current levels. As of June 30, 2024, we had $2.49 billion available under our $2.50 billion committed revolving credit facility, approximately $670.0 million available under our uncommitted facilities and had $2.1 billion available under our $2.5 billion commercial paper program that is backed by the revolving credit facility. We consider amounts borrowed under our commercial paper program as a reduction of availability under our revolving credit facility. Our credit facilities, including the revolving credit facility, require us to maintain certain financial ratios, as discussed in Note 11 of our Notes to Consolidated Financial Statements in our 10-K Report. We were in compliance with these ratios as of June 30, 2024.

Previous wording

The following table represents a comparison of the net cash used in or provided by operating activities, net cash used in investing activities, and net cash used in or provided by financing activities for the three months ended March 31, 2024 and March 31, 2023:

Current wording

The following table represents a comparison of the net cash used in or provided by operating activities, net cash used in investing activities, and net cash used in or provided by financing activities for the six months ended June 30, 2024 and June 30, 2023:

Previous wording

During the three months ended March 31, 2024, net cash used in operating activities was $80.0 million, compared to net cash provided by operating activities of $149.0 million for the same period in the prior year. Our results of operations, after non-cash adjustments, contributed $383.5 million to cash flows from operating activities during the three months ended March 31, 2024, compared to $636.3 million as computed on the same basis for the prior year period. During the three months ended March 31,

Current wording

During the six months ended June 30, 2024, net cash provided by operating activities was $767.0 million, compared to $1.2 billion for the same period in the prior year. Our results of operations, after non-cash adjustments, contributed $960.1 million to cash flows from operating activities during the six months ended June 30, 2024, compared to $1.2 billion as computed on the same basis for the prior year period. During the six months ended June 30, 2024, we had an unfavorable change in assets and liabilities of $193.1 million, compared to an favorable change of $57.0 million during the six months ended June 30, 2023.

Previous wording

2024, we had an unfavorable change in assets and liabilities of $463.5 million, compared to an unfavorable change of $487.3 million during the three months ended March 31, 2023. The change in assets and liabilities for the three months ended March 31, 2024, was primarily driven by a decrease in accounts payable and accrued liabilities of $477.7 million and an increase in inventories of $114.9 million, partially offset by favorable impacts from decreases in current and noncurrent assets of $55.0 million and accounts receivable of $30.8 million. The decrease in accounts payable and accrued liabilities was primarily related to a decrease in raw material purchase prices, a decrease in customer prepayments in Brazil, payment of taxes and the payment of incentive compensation related to 2023. The increase in inventories was primarily due to lower raw material costs in Phosphate and Mosaic Fertilizantes and building inventory volumes, primarily in Brazil, as they prepare for their high season. The decrease in current and noncurrent assets was primarily due to decreases in taxes receivable and prepaids. The decrease in accounts receivable was primarily related to lower selling prices at the end of the quarter compared to the end of the prior year.

Current wording

The change in assets and liabilities for the six months ended June 30, 2024, was primarily driven by an increase in inventories of $169.8 million and accounts receivable of $78.2 million, partially offset by an increase in other noncurrent liabilities of $78.6 million. The increase in inventories was primarily due to higher inventory volumes, primarily in Brazil, due to seasonality. The increase in accounts receivable was primarily related to an increase in sales volumes at the end of the quarter compared to the end of the prior year. The increase in other noncurrent liabilities liabilities was primarily related to increases in ARO obligations and environmental reserves in our Phosphate segment in the current year.

Previous wording

Net cash used in investing activities was $387.8 million for the three months ended March 31, 2024 compared to $221.4 million for the same period a year ago. We had capital expenditures of $383.0 million for the three months ended March 31, 2024, compared to $321.5 million in the prior year period. The prior year period included net proceeds of $158.4 million from the sale of a business and used cash of $41.0 million to acquire the other 50% of an equity investment.

Current wording

Net cash used in investing activities was $736.8 million for the six months ended June 30, 2024 compared to $532.9 million for the same period a year ago. We had capital expenditures of $716.9 million for the six months ended June 30, 2024, compared to $631.8 million in the prior year period. The prior year period included net proceeds of $158.4 million from the sale of a business and used cash of $41.0 million to acquire the other 50% of an equity investment.