Delaware
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001-16167
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43-1878297
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State of Incorporation
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(Commission File Number)
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(IRS Employer Identification No.)
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[ ]
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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[ ]
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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[ ]
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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[ ]
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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MONSANTO COMPANY
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By: /s/ Christopher A. Martin
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Name: Christopher A. Martin
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Title: Assistant Secretary
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Exhibit No.
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Description of Exhibit
|
|
99
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Press Release, dated April 4, 2012, issued by Monsanto Company
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Release
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Immediately
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Contact
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Media: Sara Miller (314-694-5824)
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Analysts: Bryan Hurley (314-694-8148)
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Second Quarter
|
Six Months
|
|||||||||||||||
($ in millions)
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
Net Sales By Segment
|
||||||||||||||||
Corn seed and traits
|
$ | 2,816 | $ | 2,397 | $ | 3,711 | $ | 3,011 | ||||||||
Soybean seed and traits
|
689 | 615 | 931 | 841 | ||||||||||||
Vegetable seeds
|
215 | 229 | 372 | 412 | ||||||||||||
Cotton seed and traits
|
66 | 67 | 260 | 179 | ||||||||||||
All other crops seeds and traits
|
138 | 113 | 184 | 141 | ||||||||||||
TOTAL Seeds and Genomics
|
$ | 3,924 | $ | 3,421 | $ | 5,458 | $ | 4,584 | ||||||||
Agricultural productivity
|
$ | 824 | $ | 710 | $ | 1,729 | $ | 1,383 | ||||||||
TOTAL Agricultural Productivity
|
$ | 824 | $ | 710 | $ | 1,729 | $ | 1,383 | ||||||||
TOTAL Net Sales
|
$ | 4,748 | $ | 4,131 | $ | 7,187 | $ | 5,967 | ||||||||
Gross Profit
|
$ | 2,705 | $ | 2,310 | $ | 3,801 | $ | 3,134 | ||||||||
Operating Expenses
|
$ | 896 | $ | 823 | $ | 1,747 | $ | 1,583 | ||||||||
Interest Expense – Net
|
$ | 27 | $ | 20 | $ | 62 | $ | 48 | ||||||||
Other Expense – Net
|
$ | 37 | $ | 11 | $ | 43 | $ | 23 | ||||||||
Net Income Attributable to Monsanto Company
|
$ | 1,211 | $ | 1,018 | $ | 1,337 | $ | 1,027 | ||||||||
Diluted Earnings per Share (See note 1.)
|
$ | 2.24 | $ | 1.88 | $ | 2.47 | $ | 1.89 | ||||||||
Items Affecting Comparability – EPS Impact
|
||||||||||||||||
Restructuring charges
|
— | — | — | 0.01 | ||||||||||||
Income on discontinued operations
|
(0.01 | ) | (0.01 | ) | (0.01 | ) | (0.01 | ) | ||||||||
Nitro Claims Settlement
|
0.05 | — | 0.05 | — | ||||||||||||
Diluted Earnings per Share from Ongoing Business (For the
definition of ongoing EPS, see note 1.)
|
$ | 2.28 | $ | 1.87 | $ | 2.51 | $ | 1.89 | ||||||||
Effective Tax Rate
|
31 | % | 29 | % | 31 | % | 30 | % |
Second Quarter
|
Six Months
|
|||||||||||
Comparison as a Percent of Net Sales:
|
2012
|
2011
|
2012
|
2011
|
||||||||
Gross profit
|
57
|
%
|
56
|
%
|
53
|
%
|
53
|
%
|
||||
Selling, general and administrative expenses (SG&A)
|
11
|
%
|
12
|
%
|
15
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%
|
16
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%
|
||||
Research and development expenses
|
7
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%
|
8
|
%
|
10
|
%
|
10
|
%
|
||||
Income from continuing operations before income taxes
|
37
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%
|
35
|
%
|
27
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%
|
25
|
%
|
||||
Net income attributable to Monsanto Company
|
26
|
%
|
25
|
%
|
19
|
%
|
17
|
%
|
($ in millions)
|
Net Sales
|
Gross Profit
|
||||||||||||||||
|
Second Quarter
|
Six Months
|
Second Quarter
|
Six Months
|
||||||||||||||
Seeds and Genomics
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
2012
|
2011
|
||||||||||
Corn Seed and Traits
|
$
|
2,816
|
$
|
2,397
|
$
|
3,711
|
$
|
3,011
|
$
|
1,847
|
$
|
1,506
|
$
|
2,378
|
$
|
1,845
|
||
Soybean Seed and Traits
|
689
|
615
|
931
|
841
|
443
|
414
|
616
|
567
|
||||||||||
Vegetable Seeds
|
215
|
229
|
372
|
412
|
85
|
125
|
166
|
238
|
||||||||||
Cotton Seed and Traits
|
66
|
67
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260
|
179
|
47
|
42
|
182
|
116
|
||||||||||
All Other Crops Seeds and Traits
|
138
|
113
|
184
|
141
|
69
|
44
|
65
|
44
|
||||||||||
TOTAL Seeds and Genomics
|
$
|
3,924
|
$
|
3,421
|
$
|
5,458
|
$
|
4,584
|
$
|
2,491
|
$
|
2,131
|
$
|
3,407
|
$
|
2,810
|
($ in millions)
|
Earnings Before Interest & Taxes (EBIT)
|
|||||||||||||||
|
Second Quarter
|
Six Months
|
||||||||||||||
Seeds and Genomics
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
EBIT (For a reconciliation of EBIT, see note 1.)
|
$ | 1,699 | $ | 1,403 | $ | 1,846 | $ | 1,383 | ||||||||
Unusual Items Affecting EBIT: Restructuring
|
$ | — | $ | (3 | ) | $ | — | $ | (14 | ) |
($ in millions)
|
Net Sales |
Gross Profit
|
|||||||||||||||||||||||||||
|
Second Quarter
|
Six Months |
Second Quarter
|
Six Months
|
|||||||||||||||||||||||||
|
2012
|
2011
|
2012
|
2011 |
2012
|
2011
|
2012
|
2011
|
|||||||||||||||||||||
Agricultural Productivity
|
$ | 824 | $ | 710 | $ | 1,729 | $ | 1,383 | $ | 214 | $ | 179 | $ | 394 | $ | 324 | |||||||||||||
TOTAL Agricultural Productivity
|
$ | 824 | $ | 710 | $ | 1,729 | $ | 1,383 | $ | 214 | $ | 179 | $ | 394 | $ | 324 |
($ in millions)
|
Earnings Before Interest & Taxes (EBIT)
|
|||||||||||||||
|
Second Quarter
|
Six Months
|
||||||||||||||
Agricultural Productivity
|
2012
|
2011
|
2012
|
2011
|
||||||||||||
EBIT (For a reconciliation of EBIT, see note 1.)
|
$ | 82 | $ | 62 | $ | 164 | $ | 127 | ||||||||
Unusual Items Affecting EBIT:
|
||||||||||||||||
Restructuring
|
$ | — | $ | — | $ | — | $ | 4 | ||||||||
EBIT from Discontinued Operations
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$ | 11 | $ | 4 | $ | 11 | $ | 4 | ||||||||
Nitro Claims Settlement
|
$ | (44 | ) | $ | — | $ | (44 | ) | $ | — |
Statements of Consolidated Operations
|
Three Months Ended
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Six Months Ended
|
||||||||||||||
Feb. 29,
|
Feb. 28,
|
Feb. 29,
|
Feb. 28,
|
|||||||||||||
2012
|
2011
|
2012
|
2011
|
|||||||||||||
Net Sales
|
$ | 4,748 | $ | 4,131 | $ | 7,187 | $ | 5,967 | ||||||||
Cost of Goods Sold
|
2,043 | 1,821 | 3,386 | 2,833 | ||||||||||||
Gross Profit
|
2,705 | 2,310 | 3,801 | 3,134 | ||||||||||||
Operating Expenses:
|
||||||||||||||||
Selling, general and administrative expenses
|
543 | 502 | 1,043 | 952 | ||||||||||||
Research and development expenses
|
353 | 320 | 704 | 623 | ||||||||||||
Restructuring charges, net
|
— | 1 | — | 8 | ||||||||||||
Total Operating Expenses
|
896 | 823 | 1,747 | 1,583 | ||||||||||||
Income From Operations
|
1,809 | 1,487 | 2,054 | 1,551 | ||||||||||||
Interest Expense
|
47 | 39 | 100 | 82 | ||||||||||||
Interest Income
|
(20 | ) | (19 | ) | (38 | ) | (34 | ) | ||||||||
Other Expense, Net
|
37 | 11 | 43 | 23 | ||||||||||||
Income from Continuing Operations Before Income Taxes
|
1,745 | 1,456 | 1,949 | 1,480 | ||||||||||||
Income Tax Provision
|
540 | 429 | 610 | 438 | ||||||||||||
Income from Continuing Operations Including Portion
|
||||||||||||||||
Attributable to Noncontrolling Interest
|
$ | 1,205 | $ | 1,027 | $ | 1,339 | $ | 1,042 | ||||||||
Discontinued Operations:
|
||||||||||||||||
Income from Operations of Discontinued Businesses
|
11 | 4 | 11 | 4 | ||||||||||||
Income Tax Provision
|
4 | 1 | 4 | 1 | ||||||||||||
Income on Discontinued Operations
|
7 | 3 | 7 | 3 | ||||||||||||
Net Income
|
$ | 1,212 | $ | 1,030 | $ | 1,346 | $ | 1,045 | ||||||||
Less: Net Income Attributable to Noncontrolling Interest
|
1 | 12 | 9 | 18 | ||||||||||||
Net Income Attributable to Monsanto Company
|
$ | 1,211 | $ | 1,018 | $ | 1,337 | $ | 1,027 | ||||||||
EBIT (see note 1)
|
$ | 1,781 | $ | 1,465 | $ | 2,010 | $ | 1,510 | ||||||||
Basic Earnings per Share Attributable to Monsanto Company:
|
||||||||||||||||
Income from Continuing Operations
|
$ | 2.25 | $ | 1.89 | $ | 2.49 | $ | 1.91 | ||||||||
Income on Discontinued Operations
|
0.02 | 0.01 | 0.01 | — | ||||||||||||
Net Income Attributable to Monsanto Company
|
$ | 2.27 | $ | 1.90 | $ | 2.50 | $ | 1.91 | ||||||||
Diluted Earnings per Share Attributable to Monsanto Company:
|
||||||||||||||||
Income from Continuing Operations
|
$ | 2.23 | $ | 1.87 | $ | 2.46 | $ | 1.89 | ||||||||
Income on Discontinued Operations
|
0.01 | 0.01 | 0.01 | — | ||||||||||||
Net Income Attributable to Monsanto Company
|
$ | 2.24 | $ | 1.88 | $ | 2.47 | $ | 1.89 | ||||||||
Weighted Average Shares Outstanding:
|
||||||||||||||||
Basic
|
534.4 | 536.3 | 534.9 | 537.6 | ||||||||||||
Diluted
|
540.5 | 542.4 | 540.9 | 543.7 |
Condensed Statements of Consolidated Financial Position
|
As of
|
As of
|
||||||
Feb. 29, 2012
|
Aug. 31, 2011
|
|||||||
Assets
|
||||||||
Current Assets:
|
||||||||
Cash and cash equivalents (variable interest entities restricted - 2012: $12 and 2011: $96)
|
$ | 3,123 | $ | 2,572 | ||||
Short-term investments
|
302 | 302 | ||||||
Trade receivables, net (variable interest entities restricted - 2012: $176 and 2011: $51)
|
2,341 | 2,117 | ||||||
Miscellaneous receivables
|
661 | 629 | ||||||
Deferred tax assets
|
536 | 446 | ||||||
Inventory, net
|
2,862 | 2,591 | ||||||
Other current assets
|
199 | 152 | ||||||
Total Current Assets
|
10,024 | 8,809 | ||||||
Property, Plant and Equipment, Net
|
4,259 | 4,394 | ||||||
Goodwill
|
3,377 | 3,365 | ||||||
Other Intangible Assets, Net
|
1,277 | 1,309 | ||||||
Noncurrent Deferred Tax Assets
|
799 | 873 | ||||||
Long-Term Receivables, Net
|
372 | 475 | ||||||
Other Assets
|
613 | 619 | ||||||
Total Assets
|
$ | 20,721 | $ | 19,844 | ||||
Liabilities and Shareowners’ Equity
|
||||||||
Current Liabilities:
|
||||||||
Short-term debt, including current portion of long-term debt
|
610 | 678 | ||||||
Accounts payable
|
681 | 839 | ||||||
Income taxes payable
|
578 | 117 | ||||||
Accrued compensation and benefits
|
306 | 427 | ||||||
Accrued marketing programs
|
1,008 | 1,110 | ||||||
Deferred revenues
|
847 | 373 | ||||||
Grower production accruals
|
229 | 87 | ||||||
Dividends payable
|
160 | 161 | ||||||
Customer payable
|
9 | 94 | ||||||
Restructuring reserves
|
16 | 24 | ||||||
Miscellaneous short-term accruals
|
749 | 819 | ||||||
Total Current Liabilities
|
5,193 | 4,729 | ||||||
Long-Term Debt
|
1,538 | 1,543 | ||||||
Postretirement Liabilities
|
494 | 509 | ||||||
Long-Term Deferred Revenue
|
292 | 337 | ||||||
Noncurrent Deferred Tax Liabilities
|
127 | 152 | ||||||
Long-Term Portion of Environmental and Litigation Reserves
|
178 | 176 | ||||||
Other Liabilities
|
703 | 682 | ||||||
Monsanto Shareowners’ Equity
|
11,994 | 11,545 | ||||||
Noncontrolling Interest
|
202 | 171 | ||||||
Total Shareowners’ Equity
|
12,196 | 11,716 | ||||||
Total Liabilities and Shareowners’ Equity
|
$ | 20,721 | $ | 19,844 | ||||
Debt to Capital Ratio:
|
15 | % | 16 | % |
Statements of Consolidated Cash Flows
|
Six Months Ended
|
|||||||
Feb. 29, 2012
|
Feb. 28, 2011
|
|||||||
Operating Activities:
|
||||||||
Net Income
|
$ | 1,346 | $ | 1,045 | ||||
Adjustments to reconcile cash provided by operating activities:
|
||||||||
Items that did not require (provide) cash:
|
||||||||
Depreciation and amortization
|
311 | 310 | ||||||
Bad-debt expense
|
(8 | ) | (6 | ) | ||||
Stock-based compensation expense
|
72 | 55 | ||||||
Excess tax benefits from stock-based compensation
|
(26 | ) | (19 | ) | ||||
Deferred income taxes
|
(33 | ) | (10 | ) | ||||
Restructuring charges, net
|
— | 8 | ||||||
Equity affiliate income, net
|
(3 | ) | (8 | ) | ||||
Net gain on sales of a business or other assets
|
(2 | ) | (4 | ) | ||||
Other items
|
65 | 59 | ||||||
Changes in assets and liabilities that provided (required) cash, net of acquisitions:
|
||||||||
Trade receivables, net
|
(265 | ) | (612 | ) | ||||
Inventory, net
|
(356 | ) | (249 | ) | ||||
Deferred revenues
|
445 | 656 | ||||||
Accounts payable and other accrued liabilities
|
142 | 472 | ||||||
Restructuring cash payments
|
(7 | ) | (152 | ) | ||||
Pension contributions
|
(33 | ) | (44 | ) | ||||
Other items
|
24 | (60 | ) | |||||
Net Cash Provided by Operating Activities
|
1,672 | 1,441 | ||||||
Cash Flows Provided (Required) by Investing Activities:
|
||||||||
Purchases of short-term investments
|
(429 | ) | (180 | ) | ||||
Maturities of short-term investments
|
429 | — | ||||||
Capital expenditures
|
(239 | ) | (217 | ) | ||||
Acquisitions of businesses, net of cash acquired
|
(113 | ) | (99 | ) | ||||
Technology and other investments
|
(56 | ) | (44 | ) | ||||
Other investments and property disposal proceeds
|
6 | 16 | ||||||
Net Cash Required by Investing Activities
|
(402 | ) | (524 | ) | ||||
Cash Flows Provided (Required) by Financing Activities:
|
||||||||
Net change in financing with less than 90-day maturities
|
(8 | ) | (12 | ) | ||||
Short-term debt proceeds
|
9 | 45 | ||||||
Short-term debt reductions
|
(17 | ) | (27 | ) | ||||
Long-term debt reductions
|
(142 | ) | (2 | ) | ||||
Payments on other financing
|
— | (2 | ) | |||||
Treasury stock purchases
|
(299 | ) | (381 | ) | ||||
Stock option exercises
|
52 | 37 | ||||||
Excess tax benefits from stock-based compensation
|
26 | 19 | ||||||
Tax withholding on restricted stock and restricted stock units
|
(1 | ) | (4 | ) | ||||
Dividend payments
|
(322 | ) | (302 | ) | ||||
Proceeds from noncontrolling interests
|
101 | 8 | ||||||
Dividend payments to noncontrolling interests
|
(71 | ) | (47 | ) | ||||
Net Cash Required by Financing Activities
|
(672 | ) | (668 | ) | ||||
Cash Assumed from Initial Consolidations of Variable Interest Entities
|
— | 77 | ||||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
(47 | ) | 26 | |||||
Net Increase in Cash and Cash Equivalents
|
551 | 352 | ||||||
Cash and Cash Equivalents at Beginning of Period
|
2,572 | 1,485 | ||||||
Cash and Cash Equivalents at End of Period
|
$ | 3,123 | $ | 1,837 |
1.
|
EBIT, Ongoing EPS and Free Cash Flow: The presentations of EBIT, ongoing EPS and free cash flow are not intended to replace net income (loss) attributable to Monsanto Company, cash flows, financial position or comprehensive income (loss), and they are not measures of financial performance as determined in accordance with generally accepted accounting principles (GAAP) in the United States. The following tables reconcile EBIT, ongoing EPS and free cash flow to the respective most directly comparable financial measure calculated in accordance with GAAP.
|
|
Three Months Ended
|
Six Months Ended
|
|||||||||
Feb. 29, 2012
|
Feb. 28, 2011
|
Feb. 29, 2012
|
Feb. 28, 2011
|
||||||||
EBIT – Seeds and Genomics Segment
|
$
|
1,699
|
$
|
1,403
|
$
|
1,846
|
$
|
1,383
|
|||
EBIT – Agricultural Productivity Segment
|
82
|
62
|
164
|
127
|
|||||||
EBIT– Total
|
1,781
|
1,465
|
2,010
|
1,510
|
|||||||
Interest Expense, Net
|
27
|
20
|
62
|
48
|
|||||||
Income Tax Provision(A)
|
543
|
427
|
611
|
435
|
|||||||
Net Income Attributable to Monsanto Company
|
$
|
1,211
|
$
|
1,018
|
$
|
1,337
|
$
|
1,027
|
(A)
|
Includes the income tax provision from continuing operations, the income tax benefit (provision) on noncontrolling interest, and the income tax on discontinued operations.
|
|
Fiscal Year
|
Three Months
|
Three Months
|
Six Months
|
Six Months
|
2012
|
Ended
|
Ended
|
Ended
|
Ended
|
|
Guidance
|
Feb. 29, 2012
|
Feb. 28, 2011
|
Feb. 29, 2012
|
Feb. 28, 2011
|
|
Diluted Earnings per Share
|
$3.45-$3.50
|
$2.24
|
$1.88
|
$2.47
|
$1.89
|
Restructuring Charges, Net
|
—
|
—
|
—
|
—
|
0.01
|
Income on Discontinued Operations
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.01)
|
(0.01)
|
Nitro Claims Settlement
|
0.05
|
0.05
|
—
|
0.05
|
—
|
Diluted Earnings per Share from Ongoing
Business
|
$3.49-$3.54
|
$2.28
|
$1.87
|
$2.51
|
$1.89
|
|
Fiscal Year
|
Six Months Ended
|
||||||
|
2012 Guidance
|
Feb. 29, 2012
|
Feb. 28, 2011
|
|||||
Net Cash Provided by Operating Activities
|
$
|
2,500-2,800
|
$
|
1,672
|
$
|
1,441
|
||
|
Net Cash Required by Investing Activities
|
(900)-(1,000)
|
(402)
|
(524)
|
||||
|
Free Cash Flow
|
$
|
1,600-1,800
|
1,270
|
917
|
|||
|
Net Cash Required by Financing Activities
|
N/A
|
(672)
|
(668)
|
||||
|
Cash Assumed from Initial Consolidations of Variable Interest Entities
|
N/A
|
—
|
77
|
||||
|
Effect of Exchange Rate Changes on Cash and Cash Equivalents
|
N/A
|
(47)
|
26
|
||||
|
Net Increase in Cash and Cash Equivalents
|
N/A
|
551
|
352
|
||||
|
Cash and Cash Equivalents at Beginning of Period
|
N/A
|
2,572
|
1,485
|
||||
|
Cash and Cash Equivalents at End of Period
|
N/A
|
$
|
3,123
|
$
|
1,837
|