MOSAIC GLOBAL HOLDINGS INC. - S-4/A - 20040917 - AUDITORS_OPINION
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors
Cargill, Incorporated:
We have audited the accompanying consolidated balance sheets of the Cargill Fertilizer Businesses (the Company) as of May 31, 2004 and 2003, and the related consolidated
statements of operations, cash flows, and stockholder's equity for each of the years in the three-year period ended May 31, 2004. These consolidated financial statements are the
responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with the Standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Cargill Fertilizer Businesses as of
May 31, 2004 and 2003, and the results of their operations and their cash flows for each of the years in the three-year period ended May 31, 2004, in conformity with U.S.
generally accepted accounting principles.
As discussed in Note 1 (p) to the consolidated financial statements, in June of 2003, the Company changed its method of accounting for asset retirement obligations to adopt
the provisions of the Financial Accounting Standards Board's Statement of Financial Accounting Standards No. 143, "Accounting for Asset Retirement Obligations."
/s/
KPMG LLP
Minneapolis, Minnesota
August 6, 2004
F-4
Cargill Fertilizer Businesses
Consolidated Balance Sheets
At May 31
2004
2003
(in thousands)
ASSETS
CURRENT ASSETS
Cash and cash equivalents
$
10,070
7,781
Short-term investments
121
1,150
Accounts receivable less allowances of $5,785 and $8,858
199,404
157,953
Trade accounts receivable due from Cargill, Inc. and affiliates
32,902
19,614
Inventories
343,490
305,238
Vendor prepayments
28,742
9,159
Other current assets
39,242
33,018
TOTAL CURRENT ASSETS
653,971
533,913
OTHER ASSETS
Investments in nonconsolidated companies
259,123
260,334
Note receivable from Saskferco
27,216
—
Other
23,534
25,091
PROPERTY
Property, plant and equipment
1,495,701
1,417,325
Construction in progress
159,932
77,077
1,655,633
1,494,402
Less accumulated depreciation and amortization
763,496
714,493
NET PROPERTY
892,137
779,909
TOTAL ASSETS
$
1,855,981
1,599,247
LIABILITIES AND STOCKHOLDER'S EQUITY
CURRENT LIABILITIES
Current portion of long-term debt
$
9,756
8,277
Accounts payable
90,764
67,083
Trade accounts payable due to Cargill, Inc. and affiliates
20,543
16,444
Customer prepayments
26,474
13,718
Accrued expenses
80,500
74,670
Accrued income taxes
22,071
2,142
Due to Cargill, Inc. and affiliates
202,915
217,379
TOTAL CURRENT LIABILITIES
453,023
399,713
OTHER LIABILITIES
Long-term debt
32,624
49,229
Due to Cargill, Inc. and affiliates
306,581
315,167
Deferred income taxes
84,771
70,412
Deferred asset retirement obligations
98,177
67,017
Other deferred liabilities
40,158
43,619
TOTAL LIABILITIES
1,015,334
945,157
MINORITY INTERESTS IN SUBSIDIARIES
7,639
4,616
STOCKHOLDER'S EQUITY
Equity
946,786
746,887
Accumulated other comprehensive income
(113,778
)
(97,413
)
TOTAL STOCKHOLDER'S EQUITY
833,008
649,474
TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY
$
1,855,981
1,599,247
The accompanying notes are an integral part of the consolidated financial statements.
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