Business Context and Reporting Period
Company: The Mosaic Company (MOSAIC CO)
Filing Type: Form 8-K (Current Report)
Date of Report: March 2, 2010
Reporting Period: Event date March 2, 2010; Report signed March 8, 2010.
The Mosaic Company was formed in 2004 through the combination of IMC Global Inc. and the fertilizer businesses of Cargill, Incorporated. As of March 4, 2010, Cargill, Incorporated and its subsidiaries owned approximately 64.2% of the Company's outstanding common stock.
Key Financial Metrics
This filing reports on a material definitive agreement and does not contain financial statements, revenue, profit, cash flow, margin, debt, or liquidity metrics. The filing text does not provide a clear value for these items.
Material Changes and Agreements
- New Agreement: On March 2, 2010, Cargill S.A.C.I. and Mosaic de Argentina S.A. ("Mosaic Argentina") entered into a barter arrangement.
- Termination: This new arrangement replaces a prior agreement dated May 16, 2006, and renewed on July 18, 2008.
- Terms: Under the arrangement, Mosaic Argentina enters into grain agreements with farmers who purchase fertilizer. Mosaic Argentina assigns these agreements to Cargill S.A.C.I., which remits payment to Mosaic Argentina for the fertilizer. The arrangement expires on March 1, 2012.
- Approval: The arrangement was approved by the Company's Cargill Relationship Committee under the Related Person Transactions Approval Policy.
Guidance, Outlook, and Risks
The filing does not provide financial guidance, outlook, or management commentary regarding future performance. The primary context is the ongoing related-party relationship with Cargill, which holds a controlling interest in the Company.
Investor Verification Checklist
- Verify the exact ownership percentage of Cargill, Incorporated in The Mosaic Company as of the filing date (stated as approx. 64.2%).
- Confirm the operational details and financial impact of the barter arrangement between Mosaic Argentina and Cargill S.A.C.I.
- Review the Company's Related Person Transactions Approval Policy to understand the governance of this agreement.
- Monitor the expiration date of the agreement (March 1, 2012) for potential renewal or termination notices.