Income Taxes |
9 Months Ended |
|---|---|
Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes During the nine months ended September 30, 2026, gross unrecognized tax benefits remained at $1.4 billion. The balance is primarily related to an unrecognized tax benefit which was established on a potential loss in the U.S. associated with the divestiture of the Taquari mine that was acquired as part of the Vale acquisition. In December 2025, the Company applied to the Internal Revenue Services’ Pre-Filing Agreement Program (“PFA”) to evaluate the amount and nature of the loss. In March 2026, the Company received notice from the Internal Revenue Service (“IRS”) of its acceptance into the program. In May 2026, the IRS began its review. The goal of the PFA was to have a resolution by the time of filing, which in our case was October 15, 2026. The IRS and Mosaic were not in a position to come to a resolution to meet this timing, and the IRS has granted a continuation of the PFA process post our October 15 filing. If recognized, approximately $1.4 billion in unrecognized tax benefits would affect our effective tax rate, other deferred tax assets and net earnings in future periods. We recognize interest and penalties related to unrecognized tax benefits as a component of our income tax provision. We had accrued interest and penalties totaling $7.2 million and $6.0 million as of September 30, 2026 and December 31, 2025, respectively, that were included in other noncurrent liabilities in the Condensed Consolidated Balance Sheets. Accounting for uncertain tax positions is determined by prescribing the minimum probability threshold that a tax position is more likely than not to be sustained based on the technical merits of the position. Mosaic is continually under audit by various authorities in the normal course of business. Such tax authorities may raise issues contrary to positions taken by the Company. If such positions are ultimately not sustained by the Company, this could result in material assessments to the Company. The costs related to defending, if needed, such positions on appeal or in court may be material. The Company believes that any issues raised have been properly accounted for in its current financial statements. For the three months ended September 30, 2026, discrete tax items recorded in tax expense was an expense of approximately $10.7 million. The net tax expense consisted primarily of the true-up of estimates. 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. Generally, for interim periods, income tax is equal to the total of (1) year-to-date pretax income multiplied by our forecasted effective tax rate, plus (2) tax expense items specific to the period. In situations where we expect to report losses for which we do not expect to receive tax benefits, we are required to apply separate forecasted effective tax rates to those jurisdictions rather than including them in the consolidated effective tax rate. For the nine months ended September 30, 2026, income tax expense was impacted by this set of rules, resulting in decreased benefit of $1.1 million compared to what would have been recorded under the general rule. For the six months ended on June 30, 2026, the Company recorded its interim income tax provision using the discrete method, as provided under Accounting Standards Codification (“ASC”) 740-270-30-18, “Income Taxes – Interim Reporting”. The discrete method is applied when the application of the estimated annual effective tax rate is impractical because it is not possible to reliably estimate the annual effective tax rate. The discrete method treats the year-to-date period as if it were the annual period and determines the income tax expense or benefit on that basis. For the nine months ended September 30, 2026, income tax expense was not impacted by this set of rules. For the nine months ended September 30, 2026, discrete tax items recorded in tax expense was an expense of approximately $17.8 million. The net tax expense consisted primarily of changes in valuation allowance, share-based excess costs and the true-up of estimates, partially offset by the tax effects of notable items recorded as discrete. 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.
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