EX-12 6 c46844exv12.htm EX-12 EX-12
Exhibit 12
MONSANTO COMPANY
COMPUTATION OF EARNINGS TO FIXED CHARGES(1)(2)
(Dollars in millions)
                                         
    Year Ended Aug. 31,   
    2008     2007     2006     2005     2004  
EARNINGS:
                                        
Income (Loss) from Continuing Operations Before Income Taxes, MI and Cumulative Effect of Accounting Change
   $ 2,926     $ 1,328     $ 1,018     $ 283     $ 330  
 
                                        
Add:
                                        
Fixed charges
     162       174       160       137       113  
Dividends from affiliated companies
     —       —       —       —       —  
Equity affiliate (income) expense — net
     (2 )     34       31       31       36  
Amortization of capitalized interest
     16       15       15       15       14  
Less:
                                        
Capitalized interest
     (22 )     (14 )     (9 )     (6 )     (7 )
 
                              
Earnings available for fixed charges
   $ 3,080     $ 1,537     $ 1,215     $ 460     $ 486  
 
                              
 
                                        
FIXED CHARGES:
                                        
Interest expense(3)
   $ 110     $ 136     $ 133     $ 116     $ 92  
Capitalized interest
     22       14       9       6       7  
Portion of rents representative of interest factor
     30       24       18       15       14  
 
                              
Total Fixed Charges
   $ 162     $ 174     $ 160     $ 137     $ 113  
 
                              
 
                                        
Ratio of Earnings to Fixed Charges
     19.01       8.83       7.59       3.36       4.30  
 
                              
 
(1)   Monsanto has not paid any preference security dividends and, therefore, has not included the ratio of combined fixed charges and preference security dividends to earnings for the relevant periods.
 
(2)   The operating results of the Dairy business has been conformed to discontinued operations presentation for all relevant fiscal years presented.
 
(3)   Includes amortization of deferred debt issuance costs and the interest component of the income tax provision.