During March 2026, we committed to a plan to divest of our Araxá mining and chemical complex in Brazil and classified the disposal group as held for sale. As part of our ongoing portfolio optimization efforts, we determined that divesting the Araxa complex would allow us to focus capital and resources on higher-return opportunities within our global phosphate operations. We expect to complete the sale within the next 12 months. Upon classification, we measured the disposal group at the lower of carrying value or fair value less costs to sell, resulting in an impairment charge of approximately $233 million recorded in other operating expense in the Condensed Consolidated Statements of Earnings (Loss). The Araxá disposal group is included in the Mosaic Fertilizantes reportable segment.

The fair value of the Araxá disposal group was determined based on market participant assumptions, including indicative pricing received from potential buyers. The fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs, including the expected sales prices and estimates costs to sell. Subsequent changes to the fair value or to significant assumptions underlying the measurement may result in further adjustments to the recognized impairment.

On December 19, 2025, we entered into an agreement to sell our Carlsbad potash mine in New Mexico for $20 million, subject to adjustment, along with a deferred payment of $10 million payable in three installments from 2029 to 2031. The decision to divest Carlsbad supports our strategic focus on our core potash assets in Canada. The disposal group was classified as held for sale as of December 31, 2025. During the first quarter of 2026, the expected net sales price was adjusted to $5 million based on working capital settlements and the present value of the deferred payment component. The Carlsbad disposal group is included in the Potash reportable segment.

The fair value of the Carlsbad disposal group was determined based on the terms of the sale agreement. The fair value measurement is classified as Level 3 within the fair value hierarchy due to the use of significant unobservable inputs. The transaction closed subsequent to quarter end on April 30, 2026 and we received cash proceeds of approximately $2 million. The carrying amounts of the Carlsbad assets held for sale, valuation allowance and liabilities held for sale as of March 31, 2026, did not change materially from the amounts presented at December 31, 2025.


(in millions)
Assets	March 31, 2026		December 31, 2025
Accounts receivable, net	$	4.5	$	15.7
Inventories, net	44.8		44.5
Other assets	9.7		14.2
Property, plant and equipment, net	517.8		184.1
Valuation allowance on assets held for sale	(417.6)		(185.0)
Current assets held for sale	$	159.2	$	73.5

Liabilities
Accounts payable and accrued expenses	$	28.6	$	14.3
Deferred tax liability	20.2		20.2
Asset retirement obligations	85.4		20.8
Current liabilities held for sale	$	134.2	$	55.3

During March 2026, in connection with the decision to divest the Araxá mining and chemical complex in Brazil and to idle the facility, we also announced plans to idle the related mining activities at the Patrocínio complex in Brazil for the foreseeable

future. The mine will be placed in care and maintenance mode, employing minimal staff while we continue to evaluate strategic alternatives, including exploration activities related to other minerals such as niobium. The decision to idle Patrocínio resulted in accelerated depreciation of approximately $26 million. For actions to idle the facilities, we recorded pre‑tax charges totaling approximately $159 million during the three months ended March 31, 2026, recorded in other operating expense in the Condensed Consolidated Statements of Earnings (Loss). These charges consisted of approximately $72 million for the termination of contracts exited in March 2026, $56 million for impairment of property, plant and equipment, $21 million for write‑off of inventory and other costs and $10 million for severance and other employee costs.