Mosaic Co. (NYSE:MOS)

Land

The value of land increased steadily from $245,900 thousand in 2017 to $341,600 thousand in 2021, indicating ongoing acquisitions or revaluations. The rise is consistent, with a slight dip in 2020 before continuing its upward trend.

Mineral Properties and Rights

This category shows a pronounced growth over the period, rising from $3,540,400 thousand in 2017 to $5,791,300 thousand in 2021. Notably, the increase accelerated between 2020 and 2021, suggesting significant investments or reclassification of assets within that year.

Buildings and Leasehold Improvements

The value of buildings and leasehold improvements increased steadily each year, from $2,473,000 thousand in 2017 to $3,452,500 thousand in 2021. The upward trend reflects consistent capital expenditures in infrastructure.

Machinery and Equipment

This category also experienced a steady rise from $7,933,500 thousand in 2017 to $9,893,600 thousand in 2021. The growth rate slowed in the last two years, indicating potentially less aggressive acquisition or replacement activity.

Construction in Progress

Construction in progress rose from $1,793,000 thousand in 2017 to a peak of $2,164,700 thousand in 2018, but then dropped sharply to $1,259,700 thousand in 2019. It showed some recovery in 2020 but decreased again in 2021 to $1,234,400 thousand. This volatility suggests fluctuating capital projects and possibly completion of major construction phases during the period.

Property, Plant and Equipment, Gross

The gross property, plant, and equipment value rose steadily from $15,985,800 thousand in 2017 to $20,713,400 thousand in 2021. The growth indicates ongoing investments in fixed assets despite some fluctuations in individual asset categories like construction in progress.

Accumulated Depreciation and Depletion

Accumulated depreciation and depletion increased in magnitude from -$6,274,100 thousand in 2017 to -$8,238,100 thousand in 2021. This reflects the aging of existing assets and the consistent application of depreciation and depletion expenses over time.

Property, Plant and Equipment, Net

The net property, plant, and equipment value increased from $9,711,700 thousand in 2017 to $12,475,300 thousand in 2021. The net growth, although positive, shows a slower increase compared to gross asset growth, reflecting the impact of depreciation and depletion.

Average Age Ratio

The average age ratio demonstrated variability over the five-year period. It decreased from 39.86% in 2017 to 37.77% in 2018, indicating a reduction in the relative age of assets. However, it increased slightly to 39.12% in 2019 and continued to rise to a peak of 41.29% in 2020. In 2021, the ratio declined marginally to 40.44%. This pattern suggests fluctuations in asset aging, with a general trend toward older properties, plant, and equipment until 2020, followed by a minor improvement.

Estimated Total Useful Life

The estimated total useful life showed some initial decline and subsequent recovery over the period. From 24 years in 2017, it decreased to 21 years by 2018 and remained stable through 2019. In 2020, the estimate increased to 23 years and further extended to 25 years in 2021. This trend may reflect changes in the expected durability or maintenance practices of the assets, leading to longer projected utilization times in recent years.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets exhibited a decrease from 10 years in 2017 to 8 years in 2018 and 2019, followed by an increase back to 10 years in 2020 and stability in 2021. This pattern may result from asset renewals or acquisitions that temporarily lowered the average age, with subsequent aging as the asset base matured again.

Estimated Remaining Life

The estimated remaining life consistently increased during the period. Beginning at 14 years in 2017, it rose gradually to 15 years by 2021. This upward trend aligns with the increase in total useful life and the fluctuations in estimated age, indicating growing expectations for the duration of asset serviceability.

The analysis of property, plant, and equipment (PP&E) data over the five-year period reveals several notable trends in asset values, depreciation, and asset aging.

Gross Property, Plant, and Equipment

The gross value of PP&E exhibited a consistent upward trajectory, increasing from approximately $15.99 billion in 2017 to $20.71 billion by the end of 2021. This steady growth indicates ongoing investment in fixed assets, reflecting potentially expanded operations or asset replacement strategies.

Accumulated Depreciation and Depletion

Accumulated depreciation and depletion also rose each year, from about $6.27 billion in 2017 to $8.24 billion in 2021. The increasing accumulation suggests continual usage and aging of assets, with depreciation expenses outpacing any asset retirements or write-offs.

Land

The carrying value of land assets increased moderately from $245.9 million in 2017 to $341.6 million in 2021, with some fluctuation in intervening years. This trend may reflect acquisitions or revaluations contributing to a larger land base, albeit at a slower growth rate compared to overall PP&E.

Average Age Ratio

The average age ratio, a measure of the relative age of fixed assets, fluctuated between approximately 37.8% and 41.3%. The ratio decreased initially from 39.9% in 2017 to 37.8% in 2018, suggesting newer assets added relative to older ones, but then increased to 41.3% in 2020 before slightly declining to 40.4% in 2021. This pattern implies a blend of asset renewal and aging, with periods of both younger and older asset bases.

Overall, the data suggest a strategy of consistent capital investment alongside the natural aging and depreciation of existing assets. The steady increase in gross PP&E points to sustained expansion or maintenance capital expenditures, while the rising accumulated depreciation reflects the progressive consumption of those assets. Land holdings have incrementally expanded, and the average age ratio indicates a relatively stable asset age profile with minor fluctuations, likely driven by the timing of asset additions and retirements.

Property, Plant, and Equipment (Gross)

The gross value of property, plant, and equipment demonstrates a consistent upward trend across the five-year period. Starting at $15,985,800 thousand in 2017, it increased to $20,713,400 thousand by the end of 2021. This represents a cumulative growth, indicating ongoing investments or acquisitions of long-term assets.

Land

The value of land shows fluctuations but an overall increase from $245,900 thousand in 2017 to $341,600 thousand in 2021. Notable changes include a substantial increase between 2017 and 2018, followed by a minor decline in 2020, then a recovery in 2021. This pattern suggests selective land purchases or revaluations with some variations in valuation or sales activity.

Depreciation and Depletion Expense

Depreciation and depletion expense rose from $659,400 thousand in 2017 to a peak of $878,200 thousand in 2018, remaining relatively stable through 2019. Thereafter, a gradual decline is observed in 2020 and 2021, with the expense dropping to $811,800 thousand. The initial increase may reflect the capitalization of new assets, while the subsequent decrease could indicate either asset disposals, extended asset lives, or changes in depreciation methods or estimates.

Estimated Total Useful Life

The estimated total useful life of assets shows moderate variation, decreasing from 24 years in 2017 to 21 years in 2018 and 2019, then increasing to 23 years in 2020 and further to 25 years in 2021. This suggests periodic reassessments of asset longevity, possibly reflecting updated maintenance practices, technological improvements, or shifts in asset composition.

Accumulated depreciation and depletion

The accumulated depreciation and depletion figures show a consistent upward trend from 6,274,100 thousand US dollars in 2017 to 8,238,100 thousand US dollars in 2021. This steady increase indicates ongoing depreciation expenses recognized over the years, reflecting the continuous aging and utilization of the property, plant, and equipment assets.

Depreciation and depletion expense

The annual depreciation and depletion expense increased notably from 659,400 thousand US dollars in 2017 to a peak of 878,200 thousand US dollars in 2018, remaining relatively stable in 2019 with 877,600 thousand US dollars. Subsequently, there was a gradual decline in expense amounts to 846,400 thousand US dollars in 2020 and further down to 811,800 thousand US dollars in 2021. This pattern suggests that while depreciation charges became higher initially, possibly due to asset acquisitions or revaluation, the expense has been decreasing somewhat in recent years. This may indicate a slowing pace of new asset additions or a change in the asset composition.

Time elapsed since purchase

The data points reveal the average age of assets as 10 years in 2017, declining to 8 years in 2018 and 2019, before increasing back to 10 years in 2020 and 2021. This fluctuation implies asset acquisition and retirement activities during these periods. The initial decrease suggests new assets were acquired, reducing the average asset age, whereas the subsequent increase points to relatively older assets remaining in the base, potentially due to fewer new purchases or longer asset retention.

Overall analysis

The overall trends in the financial data highlight a gradual accumulation of depreciation consistent with normal asset aging and usage. Depreciation expense trends suggest some variations possibly linked to investment cycles or asset retirements. The changes in average asset age corroborate this, illustrating periods of asset additions and stabilization. The combination of these metrics provides insight into the lifecycle management and capital investment patterns concerning the property, plant, and equipment portfolio over the five-year span.

The analysis of the annual property, plant, and equipment financial data reveals several notable trends over the five-year period.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment shows an overall increasing trend from 9,711,700 thousand US dollars in 2017 to 12,475,300 thousand US dollars in 2021. There was significant growth from 2017 to 2018, reaching 11,746,500 thousand US dollars, followed by a slight decrease in 2019 to 11,690,000 thousand US dollars. Subsequently, the value increased steadily in 2020 and 2021, indicating ongoing investments or capital additions over these years.

Land

The value attributed to land assets also rose from 245,900 thousand US dollars in 2017 to 341,600 thousand US dollars in 2021, representing a gradual yet consistent increase. Notably, there was a sharper rise between 2017 and 2018, while a minor dip occurred in 2020 before resuming growth in 2021. This pattern suggests acquisitions or revaluations of land holdings, with some adjustment in 2020.

Depreciation and Depletion Expense

Depreciation and depletion expense followed a different pattern. The amount initially increased significantly from 659,400 thousand US dollars in 2017 to 878,200 thousand US dollars in 2018, remaining almost flat in 2019 at 877,600 thousand US dollars. It then declined gradually for the next two years, dropping to 811,800 thousand US dollars by 2021. This decrease might reflect changes in asset utilization, depreciation methods, or asset retirement/revaluations impacting the expense recognized.

Estimated Remaining Life

The estimated remaining life of property, plant, and equipment was relatively stable, with a value of 14 years in 2017, a slight dip to 13 years in 2018 and 2019, before increasing to 14 years in 2020 and further to 15 years in 2021. This increase in remaining life might indicate either the acquisition of newer assets or the extension of asset useful lives through maintenance or reassessment.

In summary, the net property, plant, and equipment value and land assets have generally increased over the analyzed period, reflecting growth or sustained investment in fixed assets. Meanwhile, depreciation expenses peaked early and then declined, suggesting lowering wear and tear or changes in asset valuation approaches. The upward trend in estimated asset life complements the pattern, implying an overall renewal or revaluation of assets extending their useful lifespan.