MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
Delaware | 43-1878297 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
800 North Lindbergh Blvd., | 63167 |
St. Louis, MO | (Zip Code) |
(Address of principal executive offices) |
Large accelerated filer | x | Accelerated filer | o | |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | o |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
CAUTION REGARDING FORWARD-LOOKING STATEMENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
TABLE OF CONTENTS |
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MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
PART I—FINANCIAL INFORMATION |
ITEM 1. | FINANCIAL STATEMENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Unaudited (Dollars in millions, except per share amounts) | Three Months Ended | |||||
Nov. 30, 2015 | Nov. 30, 2014 | |||||
Net Sales | $ | 2,219 | $ | 2,870 | ||
Cost of goods sold | 1,318 | 1,459 | ||||
Gross Profit | 901 | 1,411 | ||||
Operating Expenses: | ||||||
Selling, general and administrative expenses | 543 | 580 | ||||
Research and development expenses | 364 | 412 | ||||
Restructuring charges | 266 | — | ||||
Total Operating Expenses | 1,173 | 992 | ||||
(Loss) Income from Operations | (272 | ) | 419 | |||
Interest expense | 129 | 115 | ||||
Interest income | (20 | ) | (38 | ) | ||
Other expense, net | 25 | 15 | ||||
(Loss) Income from Continuing Operations Before Income Taxes | (406 | ) | 327 | |||
Income tax (benefit) provision | (137 | ) | 100 | |||
(Loss) Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | $ | (269 | ) | $ | 227 | |
Discontinued Operations: | ||||||
Income from operations of discontinued businesses | 20 | 26 | ||||
Income tax provision | 8 | 10 | ||||
Income from Discontinued Operations | 12 | 16 | ||||
Net (Loss) Income | $ | (257 | ) | $ | 243 | |
Less: Net loss attributable to noncontrolling interest | (4 | ) | — | |||
Net (Loss) Income Attributable to Monsanto Company | $ | (253 | ) | $ | 243 | |
Amounts Attributable to Monsanto Company: | ||||||
(Loss) income from continuing operations | $ | (265 | ) | $ | 227 | |
Income from discontinued operations | 12 | 16 | ||||
Net (Loss) Income Attributable to Monsanto Company | $ | (253 | ) | $ | 243 | |
Basic Earnings per Share Attributable to Monsanto Company: | ||||||
(Loss) income from continuing operations | $ | (0.58 | ) | $ | 0.47 | |
Income from discontinued operations | 0.02 | 0.03 | ||||
Net (Loss) Income Attributable to Monsanto Company | $ | (0.56 | ) | $ | 0.50 | |
Diluted Earnings per Share Attributable to Monsanto Company: | ||||||
(Loss) income from continuing operations | $ | (0.58 | ) | $ | 0.47 | |
Income from discontinued operations | 0.02 | 0.03 | ||||
Net (Loss) Income Attributable to Monsanto Company | $ | (0.56 | ) | $ | 0.50 | |
Weighted Average Shares Outstanding: | ||||||
Basic | 454.1 | 484.4 | ||||
Diluted | 454.1 | 489.4 | ||||
Dividends Declared per Share | $ | — | $ | — |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Unaudited (Dollars in millions) | Three Months Ended | |||||
Nov. 30, 2015 | Nov. 30, 2014 | |||||
Comprehensive Loss Attributable to Monsanto Company | ||||||
Net (Loss) Income Attributable to Monsanto Company | $ | (253 | ) | $ | 243 | |
Other Comprehensive (Loss) Income, Net of Tax: | ||||||
Foreign currency translation, net of tax of $1, and $(6), respectively | (229 | ) | (484 | ) | ||
Postretirement benefit plan activity, net of tax of $5, and $6, respectively | 10 | 10 | ||||
Unrealized net losses on investment holdings, net of tax of $(1), and $(3), respectively | (2 | ) | (5 | ) | ||
Unrealized net derivative gains, net of tax of $(4), and $(2), respectively | — | 5 | ||||
Realized net derivative losses (gains), net of tax of $5, and $0, respectively | 4 | (1 | ) | |||
Total Other Comprehensive Loss, Net of Tax | (217 | ) | (475 | ) | ||
Comprehensive Loss Attributable to Monsanto Company | $ | (470 | ) | $ | (232 | ) |
Comprehensive Loss Attributable to Noncontrolling Interests | ||||||
Net Loss Attributable to Noncontrolling Interests | (4 | ) | — | |||
Other Comprehensive Loss | ||||||
Foreign currency translation | (1 | ) | (1 | ) | ||
Total Other Comprehensive Loss | (1 | ) | (1 | ) | ||
Comprehensive Loss Attributable to Noncontrolling Interests | $ | (5 | ) | $ | (1 | ) |
Total Comprehensive Loss | $ | (475 | ) | $ | (233 | ) |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Unaudited (Dollars in millions, except share amounts) | As of | |||||
Nov. 30, 2015 | Aug. 31, 2015 | |||||
Assets | ||||||
Current Assets: | ||||||
Cash and cash equivalents (variable interest entity restricted - 2016: $27 and 2015: $112) | $ | 2,277 | $ | 3,701 | ||
Short-term investments | 47 | 47 | ||||
Trade receivables, net (variable interest entity restricted - 2016: $87 and 2015: $0) | 2,106 | 1,636 | ||||
Miscellaneous receivables | 1,000 | 803 | ||||
Deferred tax assets | 772 | 743 | ||||
Inventory, net | 3,872 | 3,496 | ||||
Other current assets | 393 | 199 | ||||
Total Current Assets | 10,467 | 10,625 | ||||
Total property, plant and equipment | 10,412 | 10,428 | ||||
Less accumulated depreciation | 5,542 | 5,455 | ||||
Property, Plant and Equipment, Net (variable interest entity restricted - 2016: $1 and 2015: $2) | 4,870 | 4,973 | ||||
Goodwill | 3,985 | 4,061 | ||||
Other Intangible Assets, Net | 1,205 | 1,332 | ||||
Noncurrent Deferred Tax Assets | 260 | 277 | ||||
Long-Term Receivables, Net | 35 | 42 | ||||
Other Assets | 624 | 610 | ||||
Total Assets | $ | 21,446 | $ | 21,920 | ||
Liabilities and Shareowners’ Equity | ||||||
Current Liabilities: | ||||||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2016: $94 and 2015: $0) | $ | 1,788 | $ | 615 | ||
Accounts payable (variable interest entity restricted - 2016: $7 and 2015: $6) | 818 | 836 | ||||
Income taxes payable | 46 | 234 | ||||
Accrued compensation and benefits (variable interest entity restricted - 2016: $2 and 2015: $2) | 212 | 304 | ||||
Accrued marketing programs | 781 | 1,492 | ||||
Deferred revenues | 3,146 | 370 | ||||
Grower production accruals | 333 | 39 | ||||
Dividends payable | — | 254 | ||||
Customer payable | 16 | 72 | ||||
Restructuring reserves | 283 | 170 | ||||
Miscellaneous short-term accruals (variable interest entity restricted - 2016: $7 and 2015: $7) | 1,078 | 791 | ||||
Total Current Liabilities | 8,501 | 5,177 | ||||
Long-Term Debt (variable interest entity restricted - 2016: $0 and 2015: $96) | 7,939 | 8,429 | ||||
Postretirement Liabilities | 330 | 336 | ||||
Long-Term Deferred Revenue | 45 | 47 | ||||
Noncurrent Deferred Tax Liabilities | 380 | 340 | ||||
Long-Term Portion of Environmental and Litigation Liabilities | 192 | 194 | ||||
Long-Term Restructuring Reserves | 133 | 47 | ||||
Other Liabilities | 358 | 345 | ||||
Shareowners’ Equity: | ||||||
Common stock (authorized: 1,500,000,000 shares, par value $0.01) | ||||||
Issued 610,144,324 and 609,350,452 shares, respectively | ||||||
Outstanding 440,269,390 and 467,903,711 shares, respectively | 6 | 6 | ||||
Treasury stock 169,874,934 and 141,446,741 shares, respectively, at cost | (14,603 | ) | (12,053 | ) | ||
Additional contributed capital | 11,053 | 11,464 | ||||
Retained earnings | 10,121 | 10,374 | ||||
Accumulated other comprehensive loss | (3,018 | ) | (2,801 | ) | ||
Total Monsanto Company Shareowners’ Equity | 3,559 | 6,990 | ||||
Noncontrolling Interest | 9 | 15 | ||||
Total Shareowners’ Equity | 3,568 | 7,005 | ||||
Total Liabilities and Shareowners’ Equity | $ | 21,446 | $ | 21,920 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Unaudited (Dollars in millions) | Three Months Ended | |||||
Nov. 30, 2015 | Nov. 30, 2014 | |||||
Operating Activities: | ||||||
Net (Loss) Income | $ | (257 | ) | $ | 243 | |
Adjustments to reconcile cash provided by operating activities: | ||||||
Items that did not require (provide) cash: | ||||||
Depreciation and amortization | 181 | 182 | ||||
Bad-debt expense | 12 | 13 | ||||
Stock-based compensation expense | 37 | 31 | ||||
Excess tax benefits from stock-based compensation | (6 | ) | (16 | ) | ||
Deferred income taxes | 6 | 42 | ||||
Restructuring impairments | 99 | — | ||||
Equity affiliate expense, net | 2 | 3 | ||||
Net gain on sales of a business or other assets | — | (1 | ) | |||
Other items | 18 | 6 | ||||
Changes in assets and liabilities that (required) provided cash, net of acquisitions: | ||||||
Trade receivables, net | (515 | ) | (249 | ) | ||
Inventory, net | (528 | ) | (827 | ) | ||
Deferred revenues | 2,787 | 2,114 | ||||
Accounts payable and other accrued liabilities | (423 | ) | (111 | ) | ||
Restructuring, net | 208 | — | ||||
Pension contributions | (3 | ) | (6 | ) | ||
Other items | (255 | ) | (75 | ) | ||
Net Cash Provided by Operating Activities | 1,363 | 1,349 | ||||
Cash Flows (Required) Provided by Investing Activities: | ||||||
Capital expenditures | (326 | ) | (347 | ) | ||
Purchases of long-term debt and equity securities | — | (30 | ) | |||
Technology and other investments | (12 | ) | (5 | ) | ||
Other proceeds | 2 | 2 | ||||
Net Cash Required by Investing Activities | (336 | ) | (380 | ) | ||
Cash Flows Provided (Required) by Financing Activities: | ||||||
Net change in financing with less than 90-day maturities | 839 | 410 | ||||
Short-term debt proceeds | — | 14 | ||||
Short-term debt reductions | (3 | ) | — | |||
Long-term debt proceeds | 4 | 3 | ||||
Long-term debt reductions | (3 | ) | (3 | ) | ||
Treasury stock purchases | (3,000 | ) | (296 | ) | ||
Stock option exercises | 16 | 27 | ||||
Excess tax benefits from stock-based compensation | 6 | 16 | ||||
Tax withholding on restricted stock and restricted stock units | (18 | ) | (24 | ) | ||
Dividend payments | (254 | ) | (238 | ) | ||
Payments to noncontrolling interests | (1 | ) | (16 | ) | ||
Net Cash Required by Financing Activities | (2,414 | ) | (107 | ) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (37 | ) | (93 | ) | ||
Net (Decrease) Increase in Cash and Cash Equivalents | (1,424 | ) | 769 | |||
Cash and Cash Equivalents at Beginning of Period | 3,701 | 2,367 | ||||
Cash and Cash Equivalents at End of Period | $ | 2,277 | $ | 3,136 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Monsanto Shareowners | |||||||||||||||||||||
Unaudited (Dollars in millions, except per share data) | Common Stock | Treasury Stock | Additional Contributed Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) (1) | Non-Controlling Interest | Total | ||||||||||||||
Balance as of Aug. 31, 2014 | $ | 6 | $ | (10,032 | ) | $ | 10,003 | $ | 9,012 | $ | (1,114 | ) | $ | 39 | $ | 7,914 | |||||
Net income | — | — | — | 2,314 | — | 11 | 2,325 | ||||||||||||||
Other comprehensive loss | — | — | — | — | (1,687 | ) | (4 | ) | (1,691 | ) | |||||||||||
Treasury stock purchases | — | (2,021 | ) | 1,200 | — | — | — | (821 | ) | ||||||||||||
Restricted stock withholding | — | — | (29 | ) | — | — | — | (29 | ) | ||||||||||||
Issuance of shares under employee stock plans | — | — | 138 | — | — | — | 138 | ||||||||||||||
Net excess tax benefits from stock-based compensation | — | — | 40 | — | — | — | 40 | ||||||||||||||
Stock-based compensation expense | — | — | 112 | — | — | — | 112 | ||||||||||||||
Cash dividends of $2.01 per common share | — | — | — | (952 | ) | — | — | (952 | ) | ||||||||||||
Acquisition of noncontrolling interest | — | — | — | — | — | (3 | ) | (3 | ) | ||||||||||||
Payments to noncontrolling interest | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||
Balance as of Aug. 31, 2015 | $ | 6 | $ | (12,053 | ) | $ | 11,464 | $ | 10,374 | $ | (2,801 | ) | $ | 15 | $ | 7,005 | |||||
Net loss | — | — | — | (253 | ) | — | (4 | ) | (257 | ) | |||||||||||
Other comprehensive loss | — | — | — | — | (217 | ) | (1 | ) | (218 | ) | |||||||||||
Treasury stock purchases | — | (2,550 | ) | (450 | ) | — | — | — | (3,000 | ) | |||||||||||
Restricted stock withholding | — | — | (18 | ) | — | — | — | (18 | ) | ||||||||||||
Issuance of shares under employee stock plans | — | — | 15 | — | — | — | 15 | ||||||||||||||
Net excess tax benefits from stock-based compensation | — | — | 5 | — | — | — | 5 | ||||||||||||||
Stock-based compensation expense | — | — | 37 | — | — | — | 37 | ||||||||||||||
Payments to noncontrolling interest | — | — | — | — | — | (1 | ) | (1 | ) | ||||||||||||
Balance as of Nov. 30, 2015 | $ | 6 | $ | (14,603 | ) | $ | 11,053 | $ | 10,121 | $ | (3,018 | ) | $ | 9 | $ | 3,568 |
(1) | See Note 16 — Accumulated Other Comprehensive Loss — for further details of the components of accumulated other comprehensive (loss). |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED |
NOTE 1. | BACKGROUND AND BASIS OF PRESENTATION |
NOTE 2. | NEW ACCOUNTING STANDARDS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 3. | RESTRUCTURING |
Three Months Ended Nov. 30, | |||
(Dollars in millions) | 2015 | ||
Cost of Goods Sold(1) | $ | (52 | ) |
Restructuring Charges(1) | (266 | ) | |
Loss from Continuing Operations Before Income Taxes | $ | (318 | ) |
Income Tax Provision | 108 | ||
Net Income | $ | (210 | ) |
(1) | The $52 million of restructuring charges in cost of goods sold was recorded to the Seeds and Genomics segment. The $266 million of restructuring charges is split by segment as follows: $237 million in Seeds and Genomics and $29 million in Agricultural Productivity. |
Three months ended Nov. 30, 2015 | Cumulative Amount through Nov. 30, 2015 | |||||||||||||||||
(Dollars in millions) | Seeds and Genomics | Agricultural Productivity | Total | Seeds and Genomics | Agricultural Productivity | Total | ||||||||||||
Work Force Reductions | $ | 208 | $ | 9 | $ | 217 | $ | 412 | $ | 22 | $ | 434 | ||||||
Facility Closures/Exit Costs | 2 | — | 2 | 2 | — | 2 | ||||||||||||
Asset Impairments and Write-offs: | ||||||||||||||||||
Property, plant and equipment | 24 | — | 24 | 105 | — | 105 | ||||||||||||
Inventory | 37 | — | 37 | 88 | — | 88 | ||||||||||||
Goodwill and other intangible assets | 18 | 20 | 38 | 162 | 20 | 182 | ||||||||||||
Total Restructuring Charges, Net | $ | 289 | $ | 29 | $ | 318 | $ | 769 | $ | 42 | $ | 811 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
(Dollars in millions) | Work Force Reductions(1) | Facility Closures/Exit Costs | Asset Impairments | Total | ||||||||
Beginning Liability as of Aug. 31, 2015 | $ | 217 | $ | — | $ | — | $ | 217 | ||||
Net restructuring charges recognized in first quarter 2016 | 217 | 2 | 99 | 318 | ||||||||
Cash payments | (9 | ) | (2 | ) | — | (11 | ) | |||||
Asset impairments and write-offs | — | — | (99 | ) | (99 | ) | ||||||
Foreign currency impact | (9 | ) | — | — | (9 | ) | ||||||
Ending Liability as of Nov. 30, 2015 | $ | 416 | $ | — | $ | — | $ | 416 |
(1) | The restructuring liability balance included $133 million and $47 million that were recorded in long-term restructuring reserves in the Statements of Consolidated Financial Position as of Nov. 30, 2015, and Aug. 31, 2015, respectively. |
NOTE 4. | CUSTOMER FINANCING PROGRAMS |
As of | ||||||
(Dollars in millions) | Nov. 30, 2015 | Aug. 31, 2015 | ||||
Transactions that Qualify for Sales Treatment | ||||||
U.S. agreement to sell trade receivables(1) | ||||||
Outstanding balance | $ | 583 | $ | 851 | ||
Maximum future payout under recourse provisions | 58 | 125 | ||||
European and Latin American agreements to sell trade receivables(2) | ||||||
Outstanding balance | $ | 54 | $ | 124 | ||
Maximum future payout under recourse provisions | 19 | 22 | ||||
Agreements with Lenders(3) | ||||||
Outstanding balance | $ | 97 | $ | 75 | ||
Maximum future payout under the guarantee | 71 | 62 |
Gross Amounts of Receivables Sold | ||||||
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Transactions that Qualify for Sales Treatment | ||||||
U.S. agreement to sell trade receivables(1) | $ | 16 | $ | 4 | ||
European and Latin American agreements to sell trade receivables(2) | 21 | 23 |
(1) | Monsanto has agreements in the United States to sell trade receivables, both with and without recourse, up to a maximum outstanding balance of $1.4 billion and to service such accounts. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
(2) | Monsanto has various agreements in European and Latin American countries to sell trade receivables, both with and without recourse. These receivables qualify for sales treatment under the Transfers and Servicing topic of the ASC and, accordingly, the proceeds are included in net cash provided by operating activities in the Statements of Consolidated Cash Flows. The liability for the guarantees for sales with recourse is recorded at an amount that approximates fair value, based upon the company’s historical collection experience and a current assessment of credit exposure. |
(3) | Monsanto has additional agreements with lenders to establish programs that provide financing for select customers in the United States, Brazil, Latin America and Europe. Monsanto provides various levels of recourse through guarantees of the accounts in the event of customer default. The term of the guarantee is equivalent to the term of the customer loans. The liability for the guarantees is recorded at an amount that approximates fair value, based on the company’s historical collection experience with customers that participate in the program and a current assessment of credit exposure. If performance is required under the guarantee, Monsanto may retain amounts that are subsequently collected from customers. |
NOTE 5. | VARIABLE INTEREST ENTITIES AND COST BASIS INVESTMENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 6. | RECEIVABLES |
(Dollars in millions) | |||
Balance as of Aug. 31, 2014 | $ | 125 | |
Incremental Provision | 9 | ||
Recoveries | (3 | ) | |
Write-offs | (28 | ) | |
Other(1) | 17 | ||
Balance as of Aug. 31, 2015 | $ | 120 | |
Incremental Provision | 2 | ||
Write-offs | (3 | ) | |
Other(1) | 4 | ||
Balance as of Nov. 30, 2015 | $ | 123 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 7. | INVENTORY |
As of | ||||||
(Dollars in millions) | Nov. 30, 2015 | Aug. 31, 2015 | ||||
Finished Goods | $ | 1,829 | $ | 1,603 | ||
Goods In Process | 1,706 | 1,627 | ||||
Raw Materials and Supplies | 497 | 420 | ||||
Inventory at FIFO Cost | 4,032 | 3,650 | ||||
Excess of FIFO over LIFO Cost | (160 | ) | (154 | ) | ||
Total | $ | 3,872 | $ | 3,496 |
NOTE 8. | GOODWILL AND OTHER INTANGIBLE ASSETS |
(Dollars in millions) | Seeds and Genomics | Agricultural Productivity | Total | ||||||
Balance as of Aug. 31, 2015 | $ | 4,004 | $ | 57 | $ | 4,061 | |||
Effect of foreign currency translation and other adjustments | (37 | ) | 2 | (35 | ) | ||||
Reclass to held for sale | (41 | ) | — | (41 | ) | ||||
Balance as of Nov. 30, 2015 | $ | 3,926 | $ | 59 | $ | 3,985 |
As of Nov. 30, 2015 | As of Aug. 31, 2015 | |||||||||||||||||
(Dollars in millions) | Carrying Amount | Accumulated Amortization | Net | Carrying Amount | Accumulated Amortization | Net | ||||||||||||
Acquired Germplasm | $ | 1,065 | $ | (750 | ) | $ | 315 | $ | 1,074 | $ | (750 | ) | $ | 324 | ||||
Acquired Intellectual Property | 1,033 | (543 | ) | 490 | 1,168 | (598 | ) | 570 | ||||||||||
Trademarks | 340 | (151 | ) | 189 | 353 | (152 | ) | 201 | ||||||||||
Customer Relationships | 296 | (206 | ) | 90 | 318 | (212 | ) | 106 | ||||||||||
Other | 73 | (43 | ) | 30 | 176 | (146 | ) | 30 | ||||||||||
Total Other Intangible Assets, Finite Lives | $ | 2,807 | $ | (1,693 | ) | $ | 1,114 | $ | 3,089 | $ | (1,858 | ) | $ | 1,231 | ||||
In Process Research & Development, Indefinite Lives | 91 | — | 91 | 101 | — | 101 | ||||||||||||
Total Other Intangible Assets | $ | 2,898 | $ | (1,693 | ) | $ | 1,205 | $ | 3,190 | $ | (1,858 | ) | $ | 1,332 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
(Dollars in millions) | Amount | ||
2016 | $ | 145 | |
2017 | 145 | ||
2018 | 108 | ||
2019 | 107 | ||
2020 | 106 |
NOTE 9. | DEFERRED REVENUE |
NOTE 10. | DEBT AND OTHER CREDIT ARRANGEMENTS |
NOTE 11. | FAIR VALUE MEASUREMENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Fair Value Measurements at Nov. 30, 2015, Using | ||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Net Balance | ||||||||
Assets at Fair Value: | ||||||||||||
Cash equivalents | $ | 1,786 | $ | — | $ | — | $ | 1,786 | ||||
Short-term investments | 47 | — | — | 47 | ||||||||
Equity securities | 14 | — | — | 14 | ||||||||
Derivative assets related to: | ||||||||||||
Foreign currency contracts | — | 39 | — | 39 | ||||||||
Commodity contracts | 3 | 5 | — | 8 | ||||||||
Total Assets at Fair Value | $ | 1,850 | $ | 44 | $ | — | $ | 1,894 | ||||
Liabilities at Fair Value: | ||||||||||||
Short-term debt instruments(1) | $ | — | $ | 1,696 | $ | 94 | $ | 1,790 | ||||
Long-term debt instruments(1) | — | 7,515 | — | 7,515 | ||||||||
Derivative liabilities related to: | ||||||||||||
Foreign currency contracts | — | 51 | — | 51 | ||||||||
Commodity contracts | 14 | 45 | — | 59 | ||||||||
Interest rate contracts | — | 5 | — | 5 | ||||||||
Total Liabilities at Fair Value | $ | 14 | $ | 9,312 | $ | 94 | $ | 9,420 |
(1) | Debt instruments, excluding mandatorily redeemable shares, are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Fair Value Measurements at Aug. 31, 2015, Using | ||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Net Balance | ||||||||
Assets at Fair Value: | ||||||||||||
Cash equivalents | $ | 3,213 | $ | — | $ | — | $ | 3,213 | ||||
Short-term investments | 47 | — | — | 47 | ||||||||
Equity securities | 17 | — | — | 17 | ||||||||
Derivative assets related to: | ||||||||||||
Foreign currency | — | 40 | — | 40 | ||||||||
Commodity contracts | 1 | 7 | — | 8 | ||||||||
Interest rate contracts | — | 2 | — | 2 | ||||||||
Total Assets at Fair Value | $ | 3,278 | $ | 49 | $ | — | $ | 3,327 | ||||
Liabilities at Fair Value: | ||||||||||||
Short-term debt instruments(1) | $ | — | $ | 619 | $ | — | $ | 619 | ||||
Long-term debt instruments(1) | — | 8,028 | 96 | 8,124 | ||||||||
Derivative liabilities related to: | ||||||||||||
Foreign currency | — | 11 | — | 11 | ||||||||
Commodity contracts | 35 | 50 | — | 85 | ||||||||
Total Liabilities at Fair Value | $ | 35 | $ | 8,708 | $ | 96 | $ | 8,839 |
(1) | Debt instruments, excluding mandatorily redeemable shares, are not recorded at fair value on a recurring basis; however, they are measured at fair value for disclosure purposes, as required by the Fair Value Measurements and Disclosures topic of the ASC. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
(Dollars in millions) | |||
Balance Aug. 31, 2015(1) | $ | 96 | |
Reclass to short-term | (96 | ) | |
Balance Nov. 30, 2015 | $ | — |
(1) | Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $274) as of Aug. 31, 2015. |
(Dollars in millions) | |||
Balance Aug. 31, 2015 | $ | — | |
Reclass from long-term | 96 | ||
Accretion expense | 3 | ||
Effect of foreign currency translation adjustments | (5 | ) | |
Balance Nov. 30, 2015(1) | $ | 94 |
(1) | Includes 350,000 mandatorily redeemable shares outstanding with a par value of 1,000 Brazilian reais (approximately $260) as of Nov. 30, 2015. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 12. | FINANCIAL INSTRUMENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
As of | ||||||
(Dollars in millions) | Nov. 30, 2015 | Aug. 31, 2015 | ||||
Derivatives Designated as Hedges: | ||||||
Foreign exchange contracts | $ | 407 | $ | 456 | ||
Commodity contracts | 569 | 591 | ||||
Interest rate contracts | 150 | 150 | ||||
Total Derivatives Designated as Hedges | $ | 1,126 | $ | 1,197 | ||
Derivatives Not Designated as Hedges: | ||||||
Foreign exchange contracts | $ | 2,069 | $ | 1,926 | ||
Commodity contracts | 96 | 163 | ||||
Interest rate contracts | 99 | — | ||||
Total Derivatives Not Designated as Hedges | $ | 2,264 | $ | 2,089 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
As of Nov. 30, 2015 | |||||||||||||||||||||||
(Dollars in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | ||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | $ | — | $ | (9 | ) | $ | (9 | ) | $ | 9 | $ | — | |||||||||||
Foreign exchange contracts | 27 | — | 27 | — | 27 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 5 | — | 5 | — | 5 | ||||||||||||||||||
Foreign exchange contracts | 8 | — | 8 | — | 8 | ||||||||||||||||||
Total other current assets | 40 | (9 | ) | 31 | 9 | 40 | $ | 353 | $ | 393 | |||||||||||||
Other assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | 3 | (5 | ) | (2 | ) | 2 | — | ||||||||||||||||
Foreign exchange contracts | 4 | — | 4 | — | 4 | ||||||||||||||||||
Total other assets | 7 | (5 | ) | 2 | 2 | 4 | 620 | 624 | |||||||||||||||
Total Asset Derivatives | $ | 47 | $ | (14 | ) | $ | 33 | $ | 11 | $ | 44 | ||||||||||||
Liability Derivatives: | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | $ | 9 | $ | (9 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total other current assets | 9 | (9 | ) | — | — | — | |||||||||||||||||
Other assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | 5 | (5 | ) | — | — | — | |||||||||||||||||
Total other assets | 5 | (5 | ) | — | — | — | |||||||||||||||||
Miscellaneous short-term accruals | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 25 | — | 25 | — | 25 | ||||||||||||||||||
Interest rate contracts | 5 | — | 5 | — | 5 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 6 | — | 6 | — | 6 | ||||||||||||||||||
Foreign exchange contracts | 51 | — | 51 | — | 51 | ||||||||||||||||||
Total miscellaneous short-term accruals | 87 | — | 87 | — | 87 | $ | 991 | $ | 1,078 | ||||||||||||||
Other liabilities | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 14 | — | 14 | — | 14 | ||||||||||||||||||
Total other liabilities | 14 | — | 14 | — | 14 | 344 | 358 | ||||||||||||||||
Total Liability Derivatives | $ | 115 | $ | (14 | ) | $ | 101 | $ | — | $ | 101 |
(1) | As allowed by the Derivatives and Hedging topic of the ASC, derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
As of Aug. 31, 2015 | |||||||||||||||||||||||
(Dollars in millions) | Gross Amounts Recognized | Gross Amounts Offset in the Statement of Consolidated Financial Position | Net Amounts Included in the Statement of Consolidated Financial Position | Collateral Pledged | Net Amounts Reported in the Statement of Consolidated Financial Position | Other Items Included in the Statement of Consolidated Financial Position | Statement of Consolidated Financial Position Balance | ||||||||||||||||
Asset Derivatives: | |||||||||||||||||||||||
Miscellaneous receivables | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Interest rate contracts | $ | 2 | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||
Total miscellaneous receivables | 2 | — | 2 | — | 2 | $ | 801 | $ | 803 | ||||||||||||||
Other current assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | — | (29 | ) | (29 | ) | 29 | — | ||||||||||||||||
Foreign exchange contracts | 25 | — | 25 | — | 25 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 7 | — | 7 | — | 7 | ||||||||||||||||||
Foreign exchange contracts | 14 | — | 14 | — | 14 | ||||||||||||||||||
Total other current assets | 46 | (29 | ) | 17 | 29 | 46 | 153 | 199 | |||||||||||||||
Other assets | |||||||||||||||||||||||
Derivatives designated as hedges | |||||||||||||||||||||||
Commodity contracts(1) | 1 | (6 | ) | (5 | ) | 6 | 1 | ||||||||||||||||
Foreign exchange contracts | 1 | — | 1 | — | 1 | ||||||||||||||||||
Total other assets | 2 | (6 | ) | (4 | ) | 6 | 2 | 608 | 610 | ||||||||||||||
Total Asset Derivatives | $ | 50 | $ | (35 | ) | $ | 15 | $ | 35 | $ | 50 | ||||||||||||
Liability Derivatives: | |||||||||||||||||||||||
Other current assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | $ | 29 | $ | (29 | ) | $ | — | $ | — | $ | — | ||||||||||||
Total other current assets | 29 | (29 | ) | — | — | — | |||||||||||||||||
Other assets | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts(1) | 6 | (6 | ) | — | — | — | |||||||||||||||||
Total other assets | 6 | (6 | ) | — | — | — | |||||||||||||||||
Miscellaneous short-term accruals | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 27 | — | 27 | — | 27 | ||||||||||||||||||
Derivatives not designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 9 | — | 9 | — | 9 | ||||||||||||||||||
Foreign exchange contracts | 11 | — | 11 | — | 11 | ||||||||||||||||||
Total miscellaneous short-term accruals | 47 | — | 47 | — | 47 | $ | 744 | $ | 791 | ||||||||||||||
Other liabilities | |||||||||||||||||||||||
Derivatives designated as hedges: | |||||||||||||||||||||||
Commodity contracts | 14 | — | 14 | — | 14 | ||||||||||||||||||
Total other liabilities | 14 | — | 14 | — | 14 | 331 | 345 | ||||||||||||||||
Total Liability Derivatives | $ | 96 | $ | (35 | ) | $ | 61 | $ | — | $ | 61 |
(1) | As allowed by the Derivatives and Hedging topic of the ASC, commodity derivative assets and liabilities have been offset by collateral subject to an enforceable master netting arrangement or similar arrangement. Therefore, these commodity contracts that are in an asset or liability position are included in asset accounts within the Statements of Consolidated Financial Position. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Amount of Gain (Loss) Recognized in AOCI(1) (Effective Portion) | Amount of Gain (Loss) Recognized in Income(2)(3) | ||||||||||||
Three Months Ended | Three Months Ended | Statement of Consolidated Operations Classification | |||||||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | Nov. 30, 2015 | Nov. 30, 2014 | |||||||||
Derivatives Designated as Hedges: | |||||||||||||
Fair value hedges: | |||||||||||||
Commodity contracts | $ | — | $ | (2 | ) | Cost of goods sold | |||||||
Commodity contracts | — | (4 | ) | Other expense, net | |||||||||
Cash flow hedges: | |||||||||||||
Foreign currency contracts | $ | 2 | $ | 19 | 4 | 7 | Net sales | ||||||
Foreign currency contracts | 10 | 9 | 7 | — | Cost of goods sold | ||||||||
Commodity contracts | (9 | ) | (11 | ) | (17 | ) | (3 | ) | Cost of goods sold | ||||
Interest rate contracts | (7 | ) | (14 | ) | (3 | ) | (3 | ) | Interest expense | ||||
Total Derivatives Designated as Hedges | (4 | ) | 3 | (9 | ) | (5 | ) | ||||||
Derivatives Not Designated as Hedges: | |||||||||||||
Foreign currency contracts(4) | (55 | ) | (60 | ) | Other expense, net | ||||||||
Commodity contracts | 1 | 2 | Net sales | ||||||||||
Commodity contracts | — | 3 | Cost of goods sold | ||||||||||
Total Derivatives Not Designated as Hedges | (54 | ) | (55 | ) | |||||||||
Total Derivatives | $ | (4 | ) | $ | 3 | $ | (63 | ) | $ | (60 | ) |
(1) | Accumulated other comprehensive income (AOCI) (loss). |
(2) | For derivatives designated as cash flow hedges under the Derivatives and Hedging topic of the ASC, this represents the effective portion of the gain (loss) reclassified from AOCI into income during the period. |
(3) | The gain or loss on derivatives designated as hedges from ineffectiveness included in current earnings is not significant during the three months ended Nov. 30, 2015, and Nov. 30, 2014. No gains or losses were excluded from the assessment of hedge effectiveness during the three months ended Nov. 30, 2015, and Nov. 30, 2014. |
(4) | Gain or loss on foreign currency contracts not designated as hedges was offset by a foreign currency transaction gain of $28 million and $51 million during the three months ended Nov. 30, 2015, and Nov. 30, 2014, respectively. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 13. | POSTRETIREMENT BENEFITS — PENSIONS, HEALTH CARE AND OTHER |
Pension Benefits | Three Months Ended Nov. 30, 2015 | Three Months Ended Nov. 30, 2014 | ||||||||||||||||
(Dollars in millions) | U.S. | Outside the U.S. | Total | U.S. | Outside the U.S. | Total | ||||||||||||
Service Cost for Benefits Earned During the Period | $ | 16 | $ | 3 | $ | 19 | $ | 16 | $ | 3 | $ | 19 | ||||||
Interest Cost on Benefit Obligation | 24 | 2 | 26 | 22 | 2 | 24 | ||||||||||||
Assumed Return on Plan Assets | (39 | ) | (2 | ) | (41 | ) | (38 | ) | (3 | ) | (41 | ) | ||||||
Amortization of Unrecognized Net Loss | 12 | 1 | 13 | 13 | 2 | 15 | ||||||||||||
Curtailment and Settlement Charge | — | — | — | — | 1 | 1 | ||||||||||||
Total Net Periodic Benefit Cost | $ | 13 | $ | 4 | $ | 17 | $ | 13 | $ | 5 | $ | 18 |
Health Care and Other Postretirement Benefits | Three Months Ended | |||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Service Cost for Benefits Earned During the Period | $ | 2 | $ | 2 | ||
Interest Cost on Benefit Obligation | 1 | 2 | ||||
Amortization of Unrecognized Net Gain | (1 | ) | (1 | ) | ||
Total Net Periodic Benefit Cost | $ | 2 | $ | 3 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 14. | STOCK-BASED COMPENSATION PLANS |
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Cost of Goods Sold | $ | 4 | $ | 2 | ||
Selling, General and Administrative Expenses | 25 | 25 | ||||
Research and Development Expenses | 8 | 8 | ||||
Pre-Tax Stock-Based Compensation Expense | 37 | 35 | ||||
Income Tax Benefit | (12 | ) | (10 | ) | ||
Net Stock-Based Compensation Expense | $ | 25 | $ | 25 |
Monsanto Stock Plans | Director Plan | |||||||||||
Stock Options | Restricted Stock Units | Deferred Stock | Restricted Stock | |||||||||
Granted | 2,217,810 | 706,483 | 22,585 | 6,825 | ||||||||
Weighted-average grant date fair value per share | $ | 20.62 | $ | 87.68 | $ | 95.14 | $ | 91.94 | ||||
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ | 74.7 | $ | 134.1 | $ | 1.6 | $ | 0.7 | ||||
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 1.5 | 2.1 | 0.8 | 1.6 |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 15. | CAPITAL STOCK |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 16. | ACCUMULATED OTHER COMPREHENSIVE LOSS |
(Dollars in millions) | Foreign Currency Translation Adjustments | Net Unrealized Gain (Loss) on Available-for-Sale Securities | Cash Flow Hedges | Postretirement Benefit Items | Total Accumulated Other Comprehensive (Loss) Income | ||||||||||
Balance as of Aug. 31, 2014 | $ | (731 | ) | $ | 5 | $ | (167 | ) | $ | (221 | ) | $ | (1,114 | ) | |
Other comprehensive loss before reclassifications | (1,596 | ) | — | (54 | ) | (94 | ) | (1,744 | ) | ||||||
Amounts reclassified from accumulated other comprehensive loss | — | (3 | ) | 31 | 29 | 57 | |||||||||
Net current-period other comprehensive loss | (1,596 | ) | (3 | ) | (23 | ) | (65 | ) | (1,687 | ) | |||||
Balance as of Aug. 31, 2015 | $ | (2,327 | ) | $ | 2 | $ | (190 | ) | $ | (286 | ) | $ | (2,801 | ) | |
Other comprehensive (loss) income before reclassifications | (229 | ) | (2 | ) | — | 2 | (229 | ) | |||||||
Amounts reclassified from accumulated other comprehensive loss | — | — | 4 | 8 | 12 | ||||||||||
Net current-period other comprehensive (loss) income | (229 | ) | (2 | ) | 4 | 10 | (217 | ) | |||||||
Balance as of Nov. 30, 2015 | $ | (2,556 | ) | $ | — | $ | (186 | ) | $ | (276 | ) | $ | (3,018 | ) |
Three Months Ended | |||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | Affected Line Item in the Statements of Consolidated Operations | ||||
Cash Flow Hedges: | |||||||
Foreign Exchange Contracts | $ | (4 | ) | $ | (7 | ) | Net sales |
Foreign Exchange Contracts | (7 | ) | — | Cost of goods sold | |||
Commodity Contracts | 17 | 3 | Cost of goods sold | ||||
Interest Rate Contracts | 3 | 3 | Interest expense | ||||
9 | (1 | ) | Total before income taxes | ||||
(5 | ) | — | Income tax provision | ||||
$ | 4 | $ | (1 | ) | Net of tax | ||
Postretirement Benefit Items: | |||||||
Amortization of Unrecognized Net Loss | $ | 4 | $ | 5 | Inventory/Cost of goods sold(1) | ||
Amortization of Unrecognized Net Loss | 8 | 11 | Selling, general and administrative expenses | ||||
12 | 16 | Total before income taxes | |||||
(4 | ) | (6 | ) | Income tax provision | |||
$ | 8 | $ | 10 | Net of tax | |||
Total Reclassifications For The Period | $ | 12 | $ | 9 | Net of tax |
(1) | The amortization of unrecognized net loss is recorded to net periodic benefit cost, which is allocated to selling, general and administrative expenses and to inventory, which is recognized through cost of goods sold. The company recorded $4 million and $5 million of net periodic benefit cost to inventory, of which approximately $1 million and $2 million was recognized in cost of goods sold during each of the three months ended Nov. 30, 2015, and Nov. 30, 2014, respectively. See Note 13 — Postretirement Benefits - Pensions, Health Care and Other — for additional information. |
NOTE 17. | EARNINGS PER SHARE |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Three Months Ended | ||||
(Shares in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||
Weighted-Average Number of Common Shares | 454.1 | 484.4 | ||
Dilutive Potential Common Shares | 3.2 | 5.0 | ||
Antidilutive Potential Common Shares | 4.4 | 3.3 | ||
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 3.2 | — |
NOTE 18. | SUPPLEMENTAL CASH FLOW INFORMATION |
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Interest | $ | 71 | $ | 53 | ||
Taxes | 211 | 98 |
• | During first quarter 2016, the company recognized noncash transactions related to restructuring. See Note 3 - Restructuring . |
• | As of Nov. 30, 2015, and Nov. 30, 2014, the company recognized noncash capital expenditures of $73 million and $66 million, respectively, in accounts payable in the Statements of Consolidated Financial Position. |
• | During first quarters 2016 and 2015, the company recognized noncash transactions related to stock-based compensation. See Note 14 - Stock-Based Compensation Plans. |
NOTE 19. | COMMITMENTS AND CONTINGENCIES |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
NOTE 20. | SEGMENT INFORMATION |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Net Sales(1) | ||||||
Corn seed and traits | $ | 745 | $ | 928 | ||
Soybean seed and traits | 438 | 396 | ||||
Cotton seed and traits | 48 | 83 | ||||
Vegetable seeds | 138 | 155 | ||||
All other crops seeds and traits | 30 | 59 | ||||
Total Seeds and Genomics | $ | 1,399 | $ | 1,621 | ||
Agricultural productivity | 820 | $ | 1,249 | |||
Total Agricultural Productivity | $ | 820 | $ | 1,249 | ||
Total | $ | 2,219 | $ | 2,870 |
Gross Profit | ||||||
Corn seed and traits | $ | 366 | $ | 525 | ||
Soybean seed and traits | 302 | 277 | ||||
Cotton seed and traits | 25 | 58 | ||||
Vegetable seeds | 40 | 64 | ||||
All other crops seeds and traits | (5 | ) | 17 | |||
Total Seeds and Genomics | $ | 728 | $ | 941 | ||
Agricultural productivity | 173 | 470 | ||||
Total Agricultural Productivity | $ | 173 | $ | 470 | ||
Total | $ | 901 | $ | 1,411 |
EBIT(2)(3) | ||||||
Seeds and Genomics | $ | (333 | ) | $ | 43 | |
Agricultural Productivity | 59 | 384 | ||||
Total | $ | (274 | ) | $ | 427 |
Depreciation and Amortization Expense | ||||||
Seeds and Genomics | $ | 149 | $ | 150 | ||
Agricultural Productivity | 32 | 32 | ||||
Total | $ | 181 | $ | 182 |
(1) | Represents net sales from continuing operations. |
(2) | EBIT is defined as earnings before interest and taxes; see the following table for reconciliation. Earnings is intended to mean net income as presented in the Statements of Consolidated Operations under U.S. GAAP. EBIT is an operating performance measure for the two reportable segments. |
(3) | Agricultural Productivity EBIT includes income from operations of discontinued businesses of $20 million and $26 million for the three months ended Nov. 30, 2015 and 2014, respectively. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – UNAUDITED (continued) |
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
EBIT(1) | $ | (274 | ) | $ | 427 | |
Interest Expense — Net | 109 | 77 | ||||
Income Tax (Benefit) Provision(2) | (130 | ) | 107 | |||
Net (Loss) Income Attributable to Monsanto Company | $ | (253 | ) | $ | 243 |
(1) | Includes the income from operations of discontinued businesses and the loss from operations of noncontrolling interests. |
(2) | Includes the income tax provision on discontinued operations and the income tax benefit of noncontrolling interest. |
NOTE 21. | SUBSEQUENT EVENTS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
OVERVIEW |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
RESULTS OF OPERATIONS |
Three Months Ended | ||||||||
(Dollars in millions, except per share amounts) | Nov. 30, 2015 | Nov. 30, 2014 | Change | |||||
Net Sales | $ | 2,219 | $ | 2,870 | (23 | )% | ||
Cost of goods sold | 1,318 | 1,459 | (10 | )% | ||||
Gross Profit | 901 | 1,411 | (36 | )% | ||||
Operating Expenses: | ||||||||
Selling, general and administrative expenses | 543 | 580 | (6 | )% | ||||
Research and development expenses | 364 | 412 | (12 | )% | ||||
Restructuring charges | 266 | — | N/M | |||||
Total Operating Expenses | 1,173 | 992 | 18 | % | ||||
(Loss) Income from Operations | (272 | ) | 419 | (165 | )% | |||
Interest expense | 129 | 115 | 12 | % | ||||
Interest income | (20 | ) | (38 | ) | (47 | )% | ||
Other expense, net | 25 | 15 | 67 | % | ||||
(Loss) Income from Continuing Operations Before Income Taxes | (406 | ) | 327 | (224 | )% | |||
Income tax (benefit) provision | (137 | ) | 100 | (237 | )% | |||
(Loss) Income from Continuing Operations Including Portion Attributable to Noncontrolling Interest | (269 | ) | 227 | (219 | )% | |||
Discontinued Operations: | ||||||||
Income from operations of discontinued businesses | 20 | 26 | (23 | )% | ||||
Income tax provision | 8 | 10 | (20 | )% | ||||
Income from Discontinued Operations | 12 | 16 | (25 | )% | ||||
Net (Loss) Income | $ | (257 | ) | $ | 243 | (206 | )% | |
Less: Net loss attributable to noncontrolling interest | (4 | ) | — | N/M | ||||
Net (Loss) Income Attributable to Monsanto Company | $ | (253 | ) | $ | 243 | (204 | )% | |
Diluted Earnings per Share Attributable to Monsanto Company: | ||||||||
(Loss) income from continuing operations | $ | (0.58 | ) | $ | 0.47 | (223 | )% | |
Income from discontinued operations | 0.02 | 0.03 | (33 | )% | ||||
Net (Loss) Income Attributable to Monsanto Company | $ | (0.56 | ) | $ | 0.50 | (212 | )% | |
NM = Not Meaningful | ||||||||
Effective Tax Rate | 34 | % | 31 | % | ||||
Comparison as a Percent of Net Sales: | ||||||||
Cost of goods sold | 59 | % | 51 | % | ||||
Gross profit | 41 | % | 49 | % | ||||
Selling, general and administrative expenses | 24 | % | 20 | % | ||||
Research and development expenses | 16 | % | 14 | % | ||||
Total operating expenses | 53 | % | 35 | % | ||||
(Loss) Income from continuing operations before income taxes | (18 | )% | 11 | % | ||||
Net (loss) income attributable to Monsanto Company | (11 | )% | 8 | % |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
First Quarter 2016 Percentage Change in Net Sales vs. First Quarter 2015 | ||||
Volume | Price | Currency | Total | |
Seeds and Genomics Segment | (9)% | 8% | (13)% | (14)% |
Agricultural Productivity Segment | (17)% | (7)% | (10)% | (34)% |
Total Monsanto Company | (13)% | 2% | (12)% | (23)% |
First Quarter 2016 Percentage Change in Cost of Goods Sold vs. First Quarter 2015 | ||||
Volume | Costs(1) | Currency | Total | |
Seeds and Genomics Segment | (6)% | 15% | (10)% | (1)% |
Agricultural Productivity Segment | (18)% | 7% | (6)% | (17)% |
Total Monsanto Company | (12)% | 10% | (8)% | (10)% |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
SEEDS AND GENOMICS SEGMENT |
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | Change | |||||
Net Sales | ||||||||
Corn seed and traits | $ | 745 | $ | 928 | (20 | )% | ||
Soybean seed and traits | 438 | 396 | 11 | % | ||||
Cotton seed and traits | 48 | 83 | (42 | )% | ||||
Vegetable seeds | 138 | 155 | (11 | )% | ||||
All other crops seeds and traits | 30 | 59 | (49 | )% | ||||
Total Net Sales | $ | 1,399 | $ | 1,621 | (14 | )% | ||
Gross Profit | ||||||||
Corn seed and traits | $ | 366 | $ | 525 | (30 | )% | ||
Soybean seed and traits | 302 | 277 | 9 | % | ||||
Cotton seed and traits | 25 | 58 | (57 | )% | ||||
Vegetable seeds | 40 | 64 | (38 | )% | ||||
All other crops seeds and traits | (5 | ) | 17 | (129 | )% | |||
Total Gross Profit | $ | 728 | $ | 941 | (23 | )% | ||
EBIT(1) | $ | (333 | ) | $ | 43 | (874 | )% |
(1) | EBIT is defined as earnings before interest and taxes. Interest and taxes are recorded on a total company basis. We do not record these items at the segment level. See Note 20 — Segment Information and the “Overview — Non-GAAP Financial Measures” section of MD&A for further details. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
AGRICULTURAL PRODUCTIVITY SEGMENT |
Three Months Ended | ||||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | Change | |||||
Net Sales | ||||||||
Agricultural productivity | $ | 820 | $ | 1,249 | (34 | )% | ||
Total Net Sales | $ | 820 | $ | 1,249 | (34 | )% | ||
Gross Profit | ||||||||
Agricultural productivity | $ | 173 | $ | 470 | (63 | )% | ||
Total Gross Profit | $ | 173 | $ | 470 | (63 | )% | ||
EBIT(1) | $ | 59 | $ | 384 | (85 | )% |
(1) | EBIT is defined as earnings before interest and taxes. Interest and taxes are recorded on a total company basis. We do not record these items at the segment level. See Note 20 — Segment Information — and the “Overview — Non-GAAP Financial Measures” section of MD&A for further details. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES |
Working Capital and Financial Condition | |||||||||
As of | As of Aug. 31, | ||||||||
(Dollars in millions, except current ratio) | Nov. 30, 2015 | Nov. 30, 2014 | 2015 | ||||||
Cash and Cash Equivalents(1) | $ | 2,277 | $ | 3,136 | $ | 3,701 | |||
Trade Receivables, Net(1) | 2,106 | 2,247 | 1,636 | ||||||
Inventory, Net | 3,872 | 4,300 | 3,496 | ||||||
Other Current Assets(2) | 2,212 | 1,715 | 1,792 | ||||||
Total Current Assets | $ | 10,467 | $ | 11,398 | $ | 10,625 | |||
Short-Term Debt, including current portion of long-term debt(1) | $ | 1,788 | $ | 636 | $ | 615 | |||
Accounts Payable(1) | 818 | 905 | 836 | ||||||
Accrued Liabilities(1)(3) | 5,895 | 5,458 | 3,726 | ||||||
Total Current Liabilities | $ | 8,501 | $ | 6,999 | $ | 5,177 | |||
Working Capital(4) | $ | 1,966 | $ | 4,399 | $ | 5,448 | |||
Current Ratio(4) | 1.23:1 | 1.63:1 | 2.05:1 |
(1) | May include restrictions as a result of variable interest entities. See the Statements of Consolidated Financial Position and Note 5 — Variable Interest Entities and Cost Basis Investments — for more information. |
(2) | Includes short-term investments, miscellaneous receivables, deferred tax assets and other current assets. |
(3) | Includes income taxes payable, accrued compensation and benefits, accrued marketing programs, deferred revenues, grower production accruals, dividends payable, customer payable, miscellaneous short-term accruals and restructuring reserves. |
(4) | Working capital is total current assets less total current liabilities; current ratio represents total current assets divided by total current liabilities. |
• | Cash and cash equivalents decreased $1,424 million between respective periods primarily due to the $3 billion ASR agreements entered into during the quarter, offset by cash receipts from customer prepayments. |
• | Accrued liabilities increased $2,169 million between respective periods due to the following fluctuations: |
◦ | Deferred revenues increased $2,776 million due to customer prepayments that occurred in the first quarter of the fiscal year, primarily in the United States. |
◦ | Grower production accruals increased $294 million due to corn and soybean deliveries in advance of the 2016 fiscal year commercial selling season as a result of the seasonality of our business. |
◦ | Restructuring reserves increased $113 million due to severance costs recognized in the first quarter of fiscal year 2016. |
◦ | Miscellaneous short-term accruals increased $287 million between respective periods primarily due to the timing of payments to a U.S. customer financing program for which we are the administrator and an increase in accrued interest on long-term debt. |
◦ | Accrued compensation and benefits decreased $92 million between respective periods due to the payment of annual employee incentive awards during the first quarter of fiscal year 2016, partially offset by current year incentive accruals. |
◦ | Accrued marketing programs decreased $711 million between respective periods primarily because of the seasonality of our business and the timing of payouts. |
◦ | Dividends payable decreased $254 million due to the timing of dividend declarations and payments. |
◦ | Customer payable decreased $56 million due to the timing of payments. |
◦ | Income taxes payable decreased $188 million between respective periods due to the timing of tax payments in the United States. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
• | Short-term debt, including the current portion of long-term debt increased $1,173 million primarily due to commercial paper borrowings outstanding as of Nov. 30, 2015, reclassification of $400 million floating rate Senior Notes due in November 2016 from long-term to short-term, and the reclassification of mandatorily redeemable shares related to a consolidated variable interest entity from long-term to short-term. |
• | Trade receivables, net increased $470 million between respective periods primarily due to the seasonality of our business. |
• | Inventory increased $376 million between respective periods primarily because of the seasonality of our U.S. corn and soybean seed businesses in which the fall harvest of seed products occurs in the first quarter of the fiscal year resulting in a higher inventory balance. |
• | Other current assets increased $420 million between respective periods primarily due to an increase in miscellaneous receivables for income taxes recoverable and an increase in other current assets for the classification of assets held for sale related to the sale of the Precision Planting equipment business. |
• | Cash and cash equivalents decreased $859 million between respective periods primarily due to the $3 billion ASR agreements entered into during the first quarter of fiscal year 2016, offset by cash from operations and the proceeds from the $365 million debt issuance in January 2015 and the $800 million debt issuance in April 2015. |
• | Trade receivables, net decreased $141 million between respective periods primarily due to lower sales in the first quarter of fiscal year 2016. |
• | Inventory, net decreased $428 million primarily because of lower production plans for corn seeds and crop protection. |
• | Accrued liabilities increased $437 million between respective periods due to the following fluctuations: |
◦ | Deferred revenues increased $617 million between respective periods due to slightly higher customer prepayments and a delay in timing of sales primarily in the United States and Brazil. |
◦ | Restructuring reserves increased $283 million as a result of the 2015 Restructuring Plan. |
◦ | Accrued market programs decreased $171 million due to the timing of payouts. |
◦ | Grower production accruals decreased $181 million due to the lower production plan for the corn business in fiscal year 2016. |
• | Short-term debt increased $1,152 million between respective periods due to commercial paper borrowings outstanding as of Nov. 30, 2015, and the reclassification of $300 million of long-term debt and $400 million floating rate Senior Notes from long-term to short-term at Nov. 30, 2015. |
• | Other current assets increased $497 million between respective periods primarily due to the following fluctuations: |
◦ | Miscellaneous receivables increased $130 million due to income taxes recoverable recognized as a result of losses incurred in the first quarter of fiscal year 2016. |
◦ | Deferred tax assets increased $167 million between respective periods primarily due to an increase in restructuring charges that are not currently deductible for tax. |
◦ | Other current assets increased $193 million primarily due to the classification of assets held for sale related to the sale of the Precision Planting equipment business. |
• | Accounts payable decreased $87 million between respective periods due to cost savings initiatives resulting in decreased spending and a lower bank overdraft. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
Three Months Ended | ||||||
(Dollars in millions) | Nov. 30, 2015 | Nov. 30, 2014 | ||||
Net Cash Provided by Operating Activities | $ | 1,363 | $ | 1,349 | ||
Net Cash Required by Investing Activities | (336 | ) | (380 | ) | ||
Free Cash Flow(1) | 1,027 | 969 | ||||
Net Cash Required by Financing Activities | (2,414 | ) | (107 | ) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (37 | ) | (93 | ) | ||
Net (Decrease) Increase in Cash and Cash Equivalents | (1,424 | ) | 769 | |||
Cash and Cash Equivalents at Beginning of Period | 3,701 | 2,367 | ||||
Cash and Cash Equivalents at End of Period | $ | 2,277 | $ | 3,136 |
(1) | Free cash flow represents the total of net cash provided or required by operating activities and provided or required by investing activities (see the “Non-GAAP Financial Measures” section in Overview of MD&A for a further discussion). |
As of | As of Aug. 31, | ||||||||
(Dollars in millions, except debt-to-capital ratio) | Nov. 30, 2015 | Nov. 30, 2014 | 2015 | ||||||
Short-Term Debt | $ | 1,788 | $ | 636 | $ | 615 | |||
Long-Term Debt | 7,939 | 7,529 | 8,429 | ||||||
Total Monsanto Company Shareowners’ Equity | 3,559 | 7,410 | 6,990 | ||||||
Debt-to-Capital Ratio(1) | 73 | % | 52 | % | 56 | % |
(1) | Debt-to-Capital ratio represents short-term and long-term debt divided by total Monsanto Company shareowners' equity, short-term and long-term debt. |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
OUTLOOK |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
ITEM 4. | CONTROLS AND PROCEDURES |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
PART II—OTHER INFORMATION |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
Period | (a) Total Number of Shares Purchased | (b) Average Price Paid per Share(1) | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | (d) Approximate Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs (3) | |||||||||
September 2015: | |||||||||||||
Sept. 1, 2015, through Sept. 30, 2015 | 33 | (2) | $ | 85.33 | — | $ | 4,057,358,821 | ||||||
October 2015: | |||||||||||||
Oct. 1, 2015, through Oct. 31, 2015 | 28,428,127 | (2) | $ | 89.70 | 28,428,094 | $ | 1,057,358,821 | ||||||
November 2015: | |||||||||||||
Nov. 1, 2015, through Nov. 30, 2015 | 33 | (2) | $ | 95.15 | — | $ | 1,057,358,821 | ||||||
Total | 28,428,193 | $ | 89.70 | 28,428,094 | $ | 1,057,358,821 |
(1) | The average price paid per share is calculated on a trade date basis and excludes commission. |
(2) | Includes 33 shares withheld for taxes on restricted stock. |
(3) | The approximate dollar value of shares that may yet be purchased under the plans or programs is reduced by $450 million to reflect the aggregate value of the stock held back by Citi and JPMorgan pending final settlement of the company's accelerated share repurchase agreements with those firms per Note 15 — Capital Stock. |
ITEM 5. | OTHER INFORMATION |
ITEM 6. | EXHIBITS |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
SIGNATURE |
MONSANTO COMPANY | |
(Registrant) | |
By: | /s/ NICOLE M. RINGENBERG |
Nicole M. Ringenberg | |
Vice President and Controller | |
(On behalf of the Registrant and as Principal Accounting Officer) |
MONSANTO COMPANY | FIRST QUARTER 2016 FORM 10-Q |
EXHIBIT INDEX |
Exhibit No. | Description |
2 | Omitted |
3 | Omitted |
4 | Omitted |
11 | Omitted — see Note 17 of Notes to Consolidated Financial Statements — Earnings Per Share. |
12 | Computation of Ratio of Earnings to Fixed Charges. |
15 | Omitted |
18 | Omitted |
19 | Omitted |
22 | Omitted |
23 | Omitted |
24 | Omitted |
31.1 | Rule 13a-14(a) Certifications (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, executed by the Chief Executive Officer). |
31.2 | Rule 13a-14(a) Certifications (pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, executed by the Chief Financial Officer). |
32 | Rule 13a-14(b) Certifications (pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, executed by the Chief Executive Officer and the Chief Financial Officer). |
101.INS | XBRL Instance Document. |
101.SCH | XBRL Taxonomy Extension Schema Document. |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document. |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document. |
101.LAB | XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document. |
Three Months Ended Nov. 30, | Year Ended Aug. 31, | ||||||||||||||||||||||
2015 | 2015 | 2014 | 2013 | 2012 | 2011 | ||||||||||||||||||
EARNINGS: | |||||||||||||||||||||||
(Loss) Income from Continuing Operations Before Income Taxes | $ | (406 | ) | $ | 3,161 | $ | 3,827 | $ | 3,429 | $ | 2,988 | $ | 2,374 | ||||||||||
Add: | |||||||||||||||||||||||
Fixed charges | 151 | 509 | 327 | 246 | 257 | 234 | |||||||||||||||||
Equity affiliate income — net | 2 | 13 | 8 | (15 | ) | (10 | ) | (21 | ) | ||||||||||||||
Amortization of capitalized interest | 5 | 18 | 17 | 16 | 15 | 15 | |||||||||||||||||
Less: | |||||||||||||||||||||||
Capitalized interest | (7 | ) | (26 | ) | (28 | ) | (23 | ) | (21 | ) | (22 | ) | |||||||||||
Earnings available for fixed charges | $ | (255 | ) | $ | 3,675 | $ | 4,151 | $ | 3,653 | $ | 3,229 | $ | 2,580 | ||||||||||
FIXED CHARGES: | |||||||||||||||||||||||
Interest expense(3) | $ | 132 | $ | 434 | $ | 250 | $ | 176 | $ | 191 | $ | 172 | |||||||||||
Capitalized interest | 7 | 26 | 28 | 23 | 21 | 22 | |||||||||||||||||
Portion of rents representative of interest factor | 12 | 49 | 49 | 47 | 45 | 40 | |||||||||||||||||
Total fixed charges | $ | 151 | $ | 509 | $ | 327 | $ | 246 | $ | 257 | $ | 234 | |||||||||||
Ratio of Earnings to Fixed Charges | N/A | (4) | 7.22 | 12.69 | 14.85 | 12.56 | 11.03 |
(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. |
(4) | The ratio of earnings to fixed charges was negative for the three months ended Nov. 30, 2015. Additional earnings of $406 million would be needed to have a one-to-one ratio of earnings to fixed charges. |
1. | I have reviewed this report on Form 10-Q of Monsanto Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Hugh Grant |
Hugh Grant |
Chairman and Chief Executive Officer |
1. | I have reviewed this report on Form 10-Q of Monsanto Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Pierre Courduroux |
Pierre Courduroux |
Senior Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Hugh Grant |
Hugh Grant |
Chairman and Chief Executive Officer |
/s/ Pierre Courduroux |
Pierre Courduroux |
Senior Vice President and Chief Financial Officer |
Document and Entity Information - shares |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Jan. 04, 2016 |
|
Document and Entity Information [Abstract] | ||
Document type | 10-Q | |
Document period end date | Nov. 30, 2015 | |
Amendment flag | false | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | MONSANTO CO /NEW/ | |
Entity Central Index Key | 0001110783 | |
Current Fiscal Year End Date | --08-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity common stock shares outstanding | 440,355,435 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Comprehensive Loss Attributable to Monsanto Company | ||
Net (Loss) Income Attributable to Monsanto Company | $ (253) | $ 243 |
Other Comprehensive (Loss) Income, Net of Tax: | ||
Foreign currency translation, net of tax of $1, and $(6), respectively | (229) | (484) |
Postretirement benefit plan activity, net of tax of $5, and $6, respectively | 10 | 10 |
Unrealized net losses on investment holdings, net of tax of $(1), and $(3), respectively | (2) | (5) |
Unrealized net derivative gains, net of tax of $(4), and $(2), respectively | 0 | 5 |
Realized net derivative losses (gains), net of tax of $5, and $0, respectively | 4 | (1) |
Total Other Comprehensive Loss, Net of Tax | (217) | (475) |
Comprehensive Loss Attributable to Monsanto Company | (470) | (232) |
Comprehensive Loss Attributable to Noncontrolling Interests | ||
Net loss attributable to noncontrolling interest | (4) | 0 |
Other Comprehensive Loss | ||
Foreign currency translation | (1) | (1) |
Total Other Comprehensive Loss | (1) | (1) |
Comprehensive Loss Attributable to Noncontrolling Interests | (5) | (1) |
Total Comprehensive Loss | $ (475) | $ (233) |
Statements of Consolidated Comprehensive Income (Loss) (Unaudited) (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Other Comprehensive Income (Loss), Tax, Parenthetical Disclosures [Abstract] | ||
Foreign currency translation, tax expense (benefit) | $ 1 | $ (6) |
Postretirement benefit plan activity, tax benefit | 5 | 6 |
Unrealized net gains on investment holdings, tax (expense) benefit | (1) | (3) |
Realized net gains on investment holdings, tax (expense) benefit | 0 | 0 |
Unrealized net derivative gains (losses), tax (expense) benefit | (4) | (2) |
Realized net derivative (gains) losses, tax (expense) benefit | $ 5 | $ 0 |
Statements of Consolidated Financial Position (Unaudited) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Current Assets: | ||
Cash and cash equivalents (variable interest entity restricted - 2016: $27 and 2015: $112) | $ 2,277 | $ 3,701 |
Short-term investments | 47 | 47 |
Trade receivables, net (variable interest entity restricted - 2016: $87 and 2015: $0) | 2,106 | 1,636 |
Miscellaneous receivables | 1,000 | 803 |
Deferred tax assets | 772 | 743 |
Inventory, net | 3,872 | 3,496 |
Other current assets | 393 | 199 |
Total Current Assets | 10,467 | 10,625 |
Total property, plant and equipment | 10,412 | 10,428 |
Less accumulated depreciation | 5,542 | 5,455 |
Property, Plant and Equipment, Net (variable interest entity restricted - 2016: $1 and 2015: $2) | 4,870 | 4,973 |
Goodwill | 3,985 | 4,061 |
Other Intangible Assets, Net | 1,205 | 1,332 |
Noncurrent Deferred Tax Assets | 260 | 277 |
Long-Term Receivables, Net | 35 | 42 |
Other Assets | 624 | 610 |
Total Assets | 21,446 | 21,920 |
Current Liabilities: | ||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2016: $94 and 2015: $0) | 1,788 | 615 |
Accounts payable (variable interest entity restricted - 2016: $7 and 2015: $6) | 818 | 836 |
Income taxes payable | 46 | 234 |
Accrued compensation and benefits (variable interest entity restricted - 2016: $2 and 2015: $2) | 212 | 304 |
Accrued marketing programs | 781 | 1,492 |
Deferred revenues | 3,146 | 370 |
Grower production accruals | 333 | 39 |
Dividends payable | 0 | 254 |
Customer payable | 16 | 72 |
Restructuring reserves | 283 | 170 |
Miscellaneous short-term accruals (variable interest entity restricted - 2016: $7 and 2015: $7) | 1,078 | 791 |
Total Current Liabilities | 8,501 | 5,177 |
Long-Term Debt (variable interest entity restricted - 2016: $0 and 2015: $96) | 7,939 | 8,429 |
Postretirement Liabilities | 330 | 336 |
Long-Term Deferred Revenue | 45 | 47 |
Noncurrent Deferred Tax Liabilities | 380 | 340 |
Long-Term Portion of Environmental and Litigation Liabilities | 192 | 194 |
Restructuring Reserve, Noncurrent | 133 | 47 |
Other Liabilities | 358 | 345 |
Shareowners’ Equity: | ||
Common stock (authorized: 1,500,000,000 shares, par value $0.01) Issued 609,152,562 and 606,457,369 shares, respectively; Outstanding 468,579,556 and 485,261,017 shares, respectively | 6 | 6 |
Treasury stock 169,874,934 and 141,446,741 shares, respectively, at cost | (14,603) | (12,053) |
Additional contributed capital | 11,053 | 11,464 |
Retained earnings | 10,121 | 10,374 |
Accumulated other comprehensive loss | (3,018) | (2,801) |
Total Monsanto Company Shareowners’ Equity | 3,559 | 6,990 |
Noncontrolling Interest | 9 | 15 |
Total Shareowners’ Equity | 3,568 | 7,005 |
Total Liabilities and Shareowners’ Equity | $ 21,446 | $ 21,920 |
Statements of Consolidated Financial Position (Parenthetical) (Unaudited) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Current Assets: | ||
Cash and cash equivalents (variable interest entity restricted) | $ 27 | $ 112 |
Trade receivables, net (variable interest entity restricted) | 87 | 0 |
Property Plant and Equipment Net Restricted to Consolidated VIE | 1 | 2 |
Short Term Debt Restricted To Consolidated Variable Interest Entities | 94 | 0 |
Accounts Payable Restricted To Consolidated Variable Interest Entities | 7 | 6 |
Accrued Compensation and Benefits Restricted to Consolidated Variable Interest Entity | 2 | 2 |
Miscellaneous Short-Term Accruals Restricted to Consolidated VIE | 7 | 7 |
Long Term Debt Restricted To Consolidated Variable Interest Entities | $ 0 | $ 96 |
Shareowners’ Equity: | ||
Common Stock, Authorized | 1,500,000,000 | 1,500,000,000 |
Common Stock, Par Value | $ 0.01 | $ 0.01 |
Common Stock, Issued | 610,144,324 | 609,350,452 |
Common Stock, Outstanding | 440,269,390 | 467,903,711 |
Treasury Stock, at Cost | 169,874,934 | 141,446,741 |
Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Operating Activities: | ||
Net (Loss) Income | $ (257) | $ 243 |
Items that did not require (provide) cash: | ||
Depreciation and amortization | 181 | 182 |
Bad-debt expense | 12 | 13 |
Stock-based compensation expense | 37 | 31 |
Excess tax benefits from stock-based compensation | (6) | (16) |
Deferred income taxes | 6 | 42 |
Restructuring impairments | 99 | 0 |
Equity affiliate expense, net | 2 | 3 |
Net gain on sales of a business or other assets | 0 | (1) |
Other items | 18 | 6 |
Changes in assets and liabilities that (required) provided cash, net of acquisitions: | ||
Trade receivables, net | (515) | (249) |
Inventory, net | (528) | (827) |
Deferred revenues | 2,787 | 2,114 |
Accounts payable and other accrued liabilities | (423) | (111) |
Restructuring, net | 208 | 0 |
Pension contributions | (3) | (6) |
Other items | (255) | (75) |
Net Cash Provided by Operating Activities | 1,363 | 1,349 |
Cash Flows (Required) Provided by Investing Activities: | ||
Capital expenditures | (326) | (347) |
Purchases of long-term debt and equity securities | 0 | (30) |
Technology and other investments | (12) | (5) |
Other proceeds | 2 | 2 |
Net Cash Required by Investing Activities | (336) | (380) |
Cash Flows Provided (Required) by Financing Activities: | ||
Net change in financing with less than 90-day maturities | 839 | 410 |
Short-term debt proceeds | 0 | 14 |
Short-term debt reductions | (3) | 0 |
Long-term debt proceeds | 4 | 3 |
Long-term debt reductions | (3) | (3) |
Treasury stock purchases | (3,000) | (296) |
Stock option exercises | 16 | 27 |
Excess tax benefits from stock-based compensation | 6 | 16 |
Tax withholding on restricted stock and restricted stock units | (18) | (24) |
Dividend payments | (254) | (238) |
Payments to noncontrolling interests | (1) | (16) |
Net Cash Required by Financing Activities | (2,414) | (107) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (37) | (93) |
Net (Decrease) Increase in Cash and Cash Equivalents | (1,424) | 769 |
Cash and Cash Equivalents at Beginning of Period | 3,701 | 2,367 |
Cash and Cash Equivalents at End of Period | $ 2,277 | $ 3,136 |
Statements of Consolidated Shareholders Equity (Unaudited) - USD ($) $ in Millions |
Total |
Common Stock |
Treasury Stock |
Additional Contributed Capital |
Retained Earnings |
Accumulated Other Comprehensive (Loss) |
NonControlling Interests |
|||
---|---|---|---|---|---|---|---|---|---|---|
Beginning Balance at Aug. 31, 2014 | $ 7,914 | $ 6 | $ (10,032) | $ 10,003 | $ 9,012 | $ (1,114) | [1] | $ 39 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | 2,325 | 2,314 | 11 | |||||||
Other comprehensive income (loss) | (1,691) | (1,687) | [1] | (4) | ||||||
Treasury stock purchases | (821) | (2,021) | 1,200 | |||||||
Restricted stock withholding | (29) | (29) | ||||||||
Issuance of shares under employee stock plans | 138 | 138 | ||||||||
Net excess tax benefits from stock-based compensation | 40 | 40 | ||||||||
Stock-based compensation expense | 112 | 112 | ||||||||
Cash dividends per common share ($1.78 for 2014 and $0.98 for 2015) | (952) | (952) | ||||||||
Net Shares Reclassified to Mandatorily Redeemable Capital Stock, Value | (3) | (3) | ||||||||
Payments to noncontrolling interest | (28) | (28) | ||||||||
Ending Balance at Aug. 31, 2015 | 7,005 | 6 | (12,053) | 11,464 | 10,374 | (2,801) | [1] | 15 | ||
Net (Loss) Income Attributable to Monsanto Company | (253) | (253) | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss | (257) | |||||||||
Net loss attributable to noncontrolling interest | (4) | |||||||||
Other comprehensive income (loss) | (218) | (217) | (1) | |||||||
Treasury stock purchases | (3,000) | (2,550) | (450) | |||||||
Restricted stock withholding | (18) | (18) | ||||||||
Issuance of shares under employee stock plans | 15 | 15 | ||||||||
Net excess tax benefits from stock-based compensation | 5 | 5 | ||||||||
Stock-based compensation expense | 37 | 37 | ||||||||
Payments to noncontrolling interest | (1) | (1) | ||||||||
Ending Balance at Nov. 30, 2015 | $ 3,568 | $ 6 | $ (14,603) | $ 11,053 | $ 10,121 | $ (3,018) | [1] | $ 9 | ||
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Statements of Consolidated Shareholders Equity (Parenthetical) (Unaudited) - $ / shares |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
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Statement of Stockholders' Equity [Abstract] | |||
Cash dividends per common share | $ 0 | $ 0 | $ 2.01 |
BACKGROUND AND BASIS OF PRESENTATION |
3 Months Ended |
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Nov. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BACKGROUND AND BASIS OF PRESENTATION | BACKGROUND AND BASIS OF PRESENTATION Monsanto Company, along with its subsidiaries, is a leading global provider of agricultural products for farmers. Monsanto’s seeds, biotechnology trait products, herbicides and digital agriculture tools provide farmers with solutions that help improve productivity, reduce the costs of farming and produce better foods for consumers and better feed for animals. Monsanto manages its business in two segments: Seeds and Genomics and Agricultural Productivity. Through the Seeds and Genomics segment, Monsanto produces leading seed brands, including DEKALB, Asgrow, Deltapine, Seminis and De Ruiter, and Monsanto develops biotechnology traits that assist farmers in controlling insects and weeds and digital agriculture to assist farmers in decision making. Monsanto also provides other seed companies with genetic material and biotechnology traits for their seed brands. Through the Agricultural Productivity segment, the company manufactures Roundup and Harness brand herbicides and other herbicides. See Note 20 — Segment Information — for further details. In the fourth quarter of 2008, the company announced plans to divest its animal agricultural products business, which focused on dairy cow productivity and was previously reported as part of the Agricultural Productivity segment. This transaction was consummated on Oct. 1, 2008, and included a 10-year earn-out with potential annual payments being earned by Monsanto if certain revenue levels are exceeded. As a result, financial data for this business has been presented as discontinued operations. On Nov. 2, 2015, the company signed a definitive agreement with Deere & Company to sell the Precision Planting equipment business for approximately $190 million in cash, subject to customary working capital adjustments. As of Nov. 30, 2015, Monsanto has $186 million of assets and $7 million of liabilities classified as held for sale within other current assets and miscellaneous short-term accruals, respectively, on the Statement of Financial Position. The assets were primarily classified as inventory; receivables; property, plant, and equipment, net; goodwill; and intangible assets, net as of Aug. 31, 2015, and the liabilities were primarily classified as accrued marketing programs and accounts payable as of Aug. 31, 2015. Closing is expected to occur in fiscal year 2016 and remains subject to customary closing conditions including regulatory approvals. The accompanying consolidated financial statements have not been audited but have been prepared in conformity with accounting principles generally accepted in the United States for interim financial information and with instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, these unaudited consolidated financial statements contain all adjustments necessary to present fairly the financial position, results of operations and cash flows for the interim periods reported. This Report on Form 10-Q should be read in conjunction with Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2015. Financial information for the first three months of fiscal year 2016 should not be annualized because of the seasonality of the company’s business. Significant Accounting Policy Update Promotional, Advertising and Customer Incentive Program Costs: Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the Accounting Standards Codification ("ASC"), based on specific performance criteria met by our customers, such as purchase volumes, promptness of payment and market share increases. The company introduced new Agricultural Productivity customer incentive programs during first quarter 2016 providing certain customers price protection consideration if standard published prices are lowered from the price the distributor was charged on eligible products on or before Apr. 30, 2016. The associated cost of these programs is recorded in net sales in the Statement of Consolidated Operations. As actual expenses are not known at the time of sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis and adjustments are recorded as appropriate. |
NEW ACCOUNTING STANDARDS |
3 Months Ended |
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Nov. 30, 2015 | |
NEW ACCOUNTING STANDARDS [Abstract] | |
NEW ACCOUNTING STANDARDS | NEW ACCOUNTING STANDARDS In November 2015, the Financial Accounting Standards Board ("FASB") issued accounting guidance, "Balance Sheet Classification of Deferred Taxes" which removes the requirement to separate deferred tax liabilities and assets into current and noncurrent amounts and instead requires all such amounts be classified as noncurrent on the Statement of Financial Position. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2016, with early adoption permitted, including adoption in an interim period, for financial periods not yet reported. The standard may be adopted on a prospective or retrospective basis. Monsanto is required to adopt the standard in the first quarter of fiscal year 2018. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In September 2015, the FASB issued accounting guidance, "Simplifying the Accounting for Measurement-Period Adjustments" in business combinations. This standard eliminates the need for an acquirer in a business combination to recognize measurement-period adjustments retrospectively, but instead measurement-period adjustments are to be recorded during the period in which the amount of the adjustment is determined, including the effect on earnings of any amount that would have been recorded in a previous period had the amount been recorded at the acquisition date. This standard is effective for fiscal years, and interim periods within those fiscal years, beginning after Dec. 15, 2015, with early adoption permitted. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2017. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In July 2015, the FASB issued accounting guidance, "Simplifying the Measurement of Inventory" which requires inventory to be carried at the lower of cost or net realizable value if the FIFO or average cost method is used. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2016, with early adoption permitted. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2018. Adoption will be applied prospectively from the beginning of the reporting period in which the standard is adopted. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In April 2015, the FASB issued accounting guidance, "Customer's Accounting for Fees Paid in a Cloud Computing Arrangement" which provides explicit guidance on the recognition of fees paid by a customer for cloud computing arrangements as either the acquisition of a software license or a service contract. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. Monsanto must elect to adopt either retrospectively or prospectively, with early adoption permitted. Accordingly, Monsanto is required to adopt this standard in the first quarter of fiscal year 2017. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In February 2015, the FASB issued accounting guidance, "Amendments to the Consolidation Analysis" which changes the guidance with respect to the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. All legal entities are subject to reevaluation under the revised consolidation model. The new guidance affects the following areas: (1) limited partnerships and similar legal entities, (2) evaluating fees paid to a decision maker or a service provider as a variable interest, (3) the effect of fee arrangements on the primary beneficiary determination, (4) the effect of related parties on the primary beneficiary determination and (5) certain investment funds. This standard is effective for fiscal years, and for interim periods within those fiscal years, beginning after Dec. 15, 2015. Accordingly, Monsanto is required to adopt this standard in the first quarter of fiscal year 2017. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the guidance in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. A reporting entity may apply the amendments in this guidance using a modified retrospective approach by recording a cumulative effect adjustment to equity as of the beginning of the fiscal year of adoption. A reporting entity also may apply the amendments retrospectively. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In June 2014, the FASB issued accounting guidance, "Compensation - Stock Compensation" which seeks to resolve the diversity in practice that exists when accounting for share-based payments. The new guidance requires a performance target that affects vesting and that could be achieved after the requisite service period to be treated as a performance condition. This standard is effective for fiscal years, and interim periods within those years, beginning after Dec. 15, 2015, with early adoption permitted. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2017. The guidance may be adopted either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In May 2014, the FASB issued accounting guidance, "Revenue from Contracts with Customers." The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the company expects to be entitled in exchange for those goods or services. The new standard also will result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and clarify guidance for multiple-element arrangements. Entities have the option to apply the new guidance under a retrospective approach to each prior reporting period presented or a modified retrospective approach with the cumulative effect of initially applying the new guidance recognized at the date of initial application within the Statement of Consolidated Financial Position. In August 2015, the FASB amended the guidance to allow for the deferral of the effective date of this standard. The standard is effective for fiscal years, and interim periods within those years, beginning after Dec. 15, 2017. Accordingly, Monsanto will adopt this standard in the first quarter of fiscal year 2019. One-year early adoption is permitted. The company is currently evaluating the impact this guidance will have on the consolidated financial statements and related disclosures. In April 2014, the FASB issued accounting guidance, "Presentation of Financial Statements and Property, Plant, and Equipment." The new standard raises the threshold for a disposal transaction to qualify as a discontinued operation and requires additional disclosures about discontinued operations and disposals of individually significant components that do not qualify as discontinued operations. This standard is effective prospectively for all disposals of components that occur within annual periods beginning on or after Dec. 15, 2014, and interim periods within those years. Accordingly, Monsanto adopted this standard in the first quarter of fiscal year 2016. |
RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING |
Restructuring charges were recorded in the Statement of Consolidated Operations as follows:
On Oct. 6, 2015, the company approved actions to realign resources to increase productivity, enhance competitiveness by delivering cost improvements and support long-term growth. On Jan. 5, 2016, the company approved additional actions which together with the Oct. 6, 2015, actions comprise the 2015 Restructuring Plan. Actions include streamlining and reprioritizing some commercial, enabling, supply chain and research and development efforts. Cumulative pretax charges related to the 2015 Restructuring Plan are estimated to be $1.1 billion to $1.2 billion. Implementation of the 2015 Restructuring Plan is expected to be completed by the end of fiscal year 2018, and substantially all of the cash payments are expected to be made by the end of fiscal year 2018. These pretax charges are currently estimated to be comprised of the following categories: $475 million to $510 million in work force reductions, including severance and related benefits; $175 million to $205 million in facility closures/exit costs, including contract termination costs; $450 million to $485 million in asset impairments and write-offs related to property, plant and equipment, inventory and goodwill and other intangible assets. These pretax charges are currently estimated to be incurred primarily by the Seeds and Genomics segment. The following table displays the pretax charges incurred by segment under the 2015 Restructuring Plan.
The company’s written human resource policies are indicative of an ongoing benefit arrangement with respect to severance packages. Benefits paid pursuant to an ongoing benefit arrangement are specifically excluded from the Exit or Disposal Cost Obligations topic of the ASC, therefore severance charges incurred in connection with the 2015 Restructuring Plan are accounted for when probable and estimable as required under the Compensation - Nonretirement Postemployment Benefits topic of the ASC. In addition, when the decision to commit to a restructuring plan requires an asset impairment review, Monsanto evaluates such impairment issues under the Property, Plant and Equipment topic of the ASC. In the three months ended Nov. 30, 2015, pretax restructuring charges of $318 million were recorded. The $217 million in work force reductions was split relatively evenly between the United States and outside of the United States. In asset impairments, property, plant and equipment impairments of $24 million were related primarily to manufacturing and technology facilities outside of the United States. In asset impairments, inventory impairments of $37 million recorded in cost of goods sold were related to discontinued products worldwide. Intangible asset impairments of $38 million related primarily to the write-off of intellectual property for technology that the company elected no longer to pursue. The following table summarizes the activities related to the company's 2015 Restructuring Plan.
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CUSTOMER FINANCING PROGRAMS |
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CUSTOMER FINANCING PROGRAMS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CUSTOMER FINANCING PROGRAMS | CUSTOMER FINANCING PROGRAMS Monsanto participates in customer financing programs as follows:
The gross amounts of receivables sold under transactions that qualify for sales treatment were:
In addition to the arrangements in the above table, Monsanto also participates in a financing program in Brazil that allows Monsanto to transfer up to 1 billion Brazilian reais (approximately $260 million as of Nov. 30, 2015) for select customers in Brazil to a revolving financing program. Under the arrangement, a recourse provision requires Monsanto to cover the first credit losses within the program up to the amount of the company's investment. Credit losses above Monsanto's investment would be covered by senior interests in the entity by a reduction in the fair value of their mandatorily redeemable shares. The company evaluated its relationship with the entity under the guidance within the Consolidation topic of the ASC, and as a result, the entity has been consolidated. For further information on this topic, see Note 5 — Variable Interest Entities and Cost Basis Investments. There were no significant recourse or non-recourse liabilities for all programs as of Nov. 30, 2015, and Aug. 31, 2015. There were no significant delinquent loans for all programs as of Nov. 30, 2015, and Aug. 31, 2015. |
VARIABLE INTEREST ENTITIES |
3 Months Ended |
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Nov. 30, 2015 | |
VARIABLE INTEREST ENTITIES [Abstract] | |
VARIABLE INTEREST ENTITIES | VARIABLE INTEREST ENTITIES AND COST BASIS INVESTMENTS Variable Interest Entities Monsanto has a financing program in Brazil that is recorded as a consolidated variable interest entity ("VIE"). For the most part, the VIE consists of a revolving financing program that is funded by investments from the company and other third parties, primarily investment funds, and has been established to service Monsanto’s customer receivables. Third parties, primarily investment funds, held senior interest of 90 percent in the entity as of Nov. 30, 2015, and Aug. 31, 2015, and Monsanto held the remaining ten percent interest. The senior interests held by third parties are mandatorily redeemable shares and are included in short-term debt in the Statement of Consolidated Financial Position as of Nov. 30, 2015, and are included in long-term debt in the Statement of Consolidated Financial Position as of Aug. 31, 2015. Under the arrangement, Monsanto is required to maintain an investment in the VIE of at least ten percent and could be required to provide additional contributions to the VIE. Monsanto currently has no unfunded commitments to the VIE. Creditors have no recourse against Monsanto in the event of default by the VIE. The company’s financial or other support provided to the VIE is limited to its investment. Even though Monsanto holds a subordinate interest in the VIE, the VIE was established to service transactions involving the company, and the company determines the receivables that are included in the revolving financing program. Therefore, the determination is that Monsanto has the power to direct the activities most significant to the economic performance of the VIE. As a result, the company is the primary beneficiary of the VIE, and the VIE has been consolidated in Monsanto’s consolidated financial statements. The assets of the VIE may only be used to settle the obligations of the respective entity. Third-party investors in the VIE do not have recourse to the general assets of Monsanto other than the maximum exposure to loss relating to the VIE. Monsanto's maximum exposure to loss was $11 million as of Nov. 30, 2015, and Aug. 31, 2015. See Note 4 — Customer Financing Programs and Note 11 — Fair Value Measurements— for additional information. Monsanto has entered into several agreements with third parties to establish entities to focus on research and development related to various activities including agricultural fungicides and biologicals for agricultural applications. All such entities are recorded as consolidated VIEs of Monsanto. Under each of the arrangements, Monsanto holds call options to acquire the majority of the equity interests in each VIE from the third-party owners. Monsanto will fund the operations of the VIEs in return for either additional equity interests or to retain the call options. The funding, which may total up to $118 million, will be provided in separate research phases if research milestones are met. The VIEs were established to perform agricultural-based research and development activities for the benefit of Monsanto, and Monsanto provides all funding of the VIEs' activities. Further, Monsanto has the power to direct the activities most significant to the VIEs. As a result, Monsanto is the primary beneficiary of the VIEs and the VIEs have been consolidated in Monsanto's consolidated financial statements. Monsanto's maximum exposure to loss was $62 million as of Nov. 30, 2015, and Aug. 31, 2015, which includes the company's current investment in the VIEs, the funding required to be provided to the VIEs during the research phases and/or the initial consideration paid related to the call options. The third-party owners of the VIEs do not have recourse to the general assets of Monsanto beyond Monsanto's maximum exposure to loss at any given time relating to the VIEs. Cost Basis Investments Monsanto has cost basis investments recorded in other assets in the Statements of Consolidated Financial Position. As of Nov. 30, 2015, and Aug. 31, 2015, these investments were recorded at $93 million and $90 million, respectively. Due to the nature of these investments, the fair market value is not readily determinable. These investments are reviewed for impairment indicators. |
RECEIVABLES |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
RECEIVABLES | RECEIVABLES Trade receivables in the Statements of Consolidated Financial Position are net of allowances of $57 million and $59 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively. The company has financing receivables that represent long-term customer receivable balances related to past due accounts which are not expected to be collected within the current year. The long-term customer receivables were $153 million and $156 million with a corresponding allowance for credit losses on these receivables of $123 million and $120 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively. These long-term customer receivable balances and the corresponding allowance are included in long-term receivables, net in the Statements of Consolidated Financial Position. For these long-term customer receivables, interest is no longer accrued when the receivable is determined to be delinquent and classified as long-term based on estimated timing of collection. The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables.
(1)Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. On an ongoing basis, the company evaluates credit quality of its financing receivables utilizing aging of receivables, collection experience and write-offs, as well as evaluating existing economic conditions, to determine if an allowance is necessary. |
INVENTORY |
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY | INVENTORY Components of inventory are:
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GOODWILL AND OTHER INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS Changes in the net carrying amount of goodwill for the first three months of fiscal year 2016, by segment, are as follows:
There were no events or circumstances indicating that goodwill might be impaired as of Nov. 30, 2015. The fiscal year 2016 annual goodwill impairment test will be performed as of Mar. 1, 2016. See Note 1 — Background and Basis of Presentation — for further information on the reclass to held for sale. Information regarding the company’s other intangible assets is as follows:
The decrease in total other intangible assets, net during the three months ended Nov. 30, 2015, is primarily related to intangible impairments. See Note 11 — Fair Value Measurements and Note 3 — Restructuring — for further information. Total amortization expense of total other intangible assets was $31 million and $37 million for the three months ended Nov. 30, 2015, and Nov. 30, 2014, respectively. The estimated intangible asset amortization expense for fiscal year 2016 through fiscal year 2020 is as follows:
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DEFERRED REVENUE |
3 Months Ended |
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Nov. 30, 2015 | |
Deferred Revenue Disclosure [Abstract] | |
DEFERRED REVENUE | DEFERRED REVENUE As of Nov. 30, 2015, and Aug. 31, 2015, short-term deferred revenue was $3,146 million and $370 million, respectively. This balance primarily consists of cash received related to Monsanto's prepayment programs in the United States and Brazil. These programs allow Monsanto's customers to receive a discount if they prepay by a certain date, and the short-term deferred revenue balance is consistent with the seasonality of Monsanto's business. Prepayment options are attractive to customers given the discounted pricing and the ability to utilize cash flow from the current year grain harvest to pay for the next season seed purchases. The deferred revenue balance related to these prepayment programs is considered short-term in nature and thus classified in current liabilities as the prepayments are for products to be shipped within the next 12 months. |
DEBT AND OTHER CREDIT ARRANGEMENTS |
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Nov. 30, 2015 | |
Debt Disclosure [Abstract] | |
DEBT AND OTHER CREDIT ARRANGEMENTS | EBT AND OTHER CREDIT ARRANGEMENTS In June 2014, Monsanto filed a new shelf registration with the SEC ("2014 shelf registration") that allows the company to issue an unlimited capacity of debt, equity and hybrid offerings. The 2014 shelf registration expires in June 2017. In April 2015, Monsanto issued $300 million of 2.85% Senior Notes due in 2025 and $500 million of 3.95% Senior Notes due in 2045. In January 2015, Monsanto issued $365 million of 4.30% Senior Notes due in 2045. All notes were issued under the 2014 shelf registration. The net proceeds from the issuances were used for general corporate purposes, which include share repurchases and capital expenditures. Monsanto has a $3 billion credit facility agreement that provides a senior unsecured revolving credit facility through Mar. 27, 2020. As of Nov. 30, 2015, Monsanto was in compliance with all debt covenants, and there were no outstanding borrowings under this credit facility. Monsanto's short-term debt instruments include commercial paper, the current portion of long-term debt and notes payable to banks. As of Nov. 30, 2015, Monsanto had commercial paper borrowings outstanding of $649 million which are included in short-term debt on the Statement of Consolidated Financial Position. As of Aug. 31, 2015, there were no commercial paper borrowings outstanding. Additionally, as of Nov. 30, 2015, the mandatorily redeemable shares of a VIE were included as short-term debt instruments. These instruments were classified as long-term debt as of Aug. 31, 2015. The fair value of total short-term debt was $1,790 million and $619 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively. The fair value of the total long-term debt was $7,515 million and $8,124 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively. See Note 11 — Fair Value Measurements — for additional information. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Monsanto determines the fair market value of its financial assets and liabilities based on quoted market prices, estimates from brokers and other appropriate valuation techniques. The company uses the fair value hierarchy established in the Fair Value Measurements and Disclosures topic of the ASC, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchy contains three levels as follows, with Level 3 representing the lowest level of input. Level 1 — Values based on unadjusted quoted market prices in active markets that are accessible at the measurement date for identical assets and liabilities. Level 2 — Values based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, discounted cash flow models, or other model-based valuation techniques adjusted, as necessary, for credit risk. Level 3 — Values generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions would reflect our own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques could include use of option pricing models, discounted cash flow models and similar techniques. The following tables set forth by level Monsanto’s assets and liabilities disclosed at fair value on a recurring basis as of Nov. 30, 2015, and Aug. 31, 2015. As required by the Fair Value Measurements and Disclosures topic of the ASC, assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. Monsanto’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels.
The company’s derivative contracts are measured at fair value, including forward commodity purchase and sale contracts, exchange-traded commodity futures and option contracts, and over-the-counter (OTC) instruments related primarily to agricultural commodities, energy and raw materials, interest rates and foreign currencies. Exchange-traded futures and options contracts are valued based on unadjusted quoted prices in active markets and are classified as Level 1. Fair value for forward commodity purchase and sale contracts is estimated based on exchange-quoted prices adjusted for differences in local markets. These differences are generally determined using inputs from broker or dealer quotations or market transactions in either the listed or OTC markets and are classified as Level 2. Interest rate contracts consist of interest rate swaps measured using broker or dealer quoted prices. When observable inputs are available for substantially the full term of the contract, it is classified as Level 2. Based on historical experience with the company’s suppliers and customers, the company’s own credit risk and knowledge of current market conditions, the company does not view nonperformance risk to be a significant input to the fair value for the majority of its forward commodity purchase and sale contracts. The effective portions of changes in the fair value of derivatives designated as cash flow hedges are recognized in the Statements of Consolidated Financial Position as a component of accumulated other comprehensive loss until the hedged items are recorded in earnings or it is probable the hedged transaction will no longer occur. Changes in the fair value of derivatives are recognized in the Statements of Consolidated Operations as a component of net sales, cost of goods sold and other expense, net. The company’s short-term investments may consist of commercial paper and cash which is contractually restricted as to withdrawal or usage. The company’s equity securities consist of publicly traded equity investments. Commercial paper and publicly traded equity investments are valued using quoted market prices and are classified as Level 1. Contractually restricted cash may be held in an interest bearing account measured using prevailing interest rates and are classified as Level 1. The company's debt securities are classified as Level 2 and valued using broker or dealer quoted prices with a maturity greater than one year. Short-term debt instruments may consist of commercial paper, current portion of long-term debt, mandatorily redeemable shares, and notes payable to banks. Commercial paper and notes payables to banks are recorded at amortized cost in the Statements of Consolidated Financial Position, which approximates fair value. Current portion of long-term debt is measured at fair value for disclosure purposes and determined based on current market yields for Monsanto's debt traded in the secondary market. Mandatorily redeemable shares are recorded in the Statements of Consolidated Financial Position at fair value, which represents the amount of cash the consolidated variable interest entity would pay if settlement occurred as of the respective reporting date. Fair value of the mandatorily redeemable shares of the variable interest entity is calculated using observable and unobservable inputs from an interest rate market in Brazil and stated contractual terms (a Level 3 measurement). See Note 10 — Debt and Other Credit Arrangements — for additional disclosures. Accretion expense is included in the Statements of Consolidated Operations as interest expense. Long-term debt was measured at fair value for disclosure purposes and determined based on current market yields for Monsanto's debt traded in the secondary market. For the three months ended Nov. 30, 2015, and Nov. 30, 2014, the company had no transfers between Level 1, Level 2 and Level 3. Monsanto does not have any assets with fair value determined using Level 3 inputs as of Nov. 30, 2015, and Aug. 31, 2015. The following table summarizes the change in fair value of the Level 3 long-term debt instrument for the three months ended Nov. 30, 2015.
The following table summarizes the change in fair value of the Level 3 short-term debt instrument for the three months ended Nov. 30, 2015.
There were no significant measurements of liabilities to their implied fair value on a nonrecurring basis during the three months ended Nov. 30, 2015, and Nov. 30, 2014. There were no significant measurements of assets to their implied fair value on a nonrecurring basis during the three months ended Nov. 30, 2014. Significant measurements during the three months ended Nov. 30, 2015, of assets to their implied fair value on a nonrecurring basis were as follows: Property, Plant and Equipment Net: Property, plant and equipment within the Seeds and Genomics segment with a net book value of $34 million was written down to its initial fair value estimate of $10 million, resulting in an impairment charge of $24 million, with $15 million included in cost of goods sold and $9 million included in restructuring charges in the Statement of Consolidated Operations. The initial fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 3 — Restructuring — for additional disclosures. Other Intangible Assets, Net: Other intangible assets within the Seeds and Genomics segment with a net book value of $16 million were written down to their implied fair value of less than $1 million, resulting in an impairment charge of $16 million, with $16 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 3 — Restructuring — for additional disclosures. Other intangible assets within the Agricultural Productivity segment with a net book value of $20 million were written down to their implied fair value of less than $1 million, resulting in an impairment charge of $20 million, with $20 million included in restructuring charges in the Statement of Consolidated Operations. The implied fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 3 — Restructuring — for additional disclosures. Other Assets: A long-term investment within the Seeds and Genomics segment with a net book value of $7 million was written down to its initial fair value estimate of $5 million, resulting in an impairment charge of $2 million, with $2 million included in restructuring charges in the Statement of Consolidated Operations. The initial fair value calculations were performed using a discounted cash flow model (a Level 3 measurement). See Note 3 — Restructuring — for additional disclosures. The recorded amounts of cash, trade receivables, miscellaneous receivables, third-party guarantees, accounts payable, grower production accruals, accrued marketing programs and miscellaneous short-term accruals approximate their fair values as of Nov. 30, 2015, and Aug. 31, 2015. Management is ultimately responsible for all fair values presented in the company’s consolidated financial statements. The company performs analysis and review of the information and prices received from third parties to ensure that the prices represent a reasonable estimate of fair value. This process involves quantitative and qualitative analysis. As a result of the analysis, if the company determines there is a more appropriate fair value based upon the available market data, the price received from the third party is adjusted accordingly. |
FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Cash Flow Hedges The company uses foreign currency options and foreign currency forward contracts as hedges of anticipated sales or purchases denominated in foreign currencies. The company enters into these contracts to protect itself against the risk that the eventual net cash flows will be adversely affected by changes in exchange rates. Monsanto’s commodity price risk management strategy is to use derivative instruments to minimize significant unanticipated earnings fluctuations that may arise from volatility in commodity prices. Price fluctuations in commodities, mainly in corn and soybeans, can cause the actual prices paid to production growers for corn and soybean seeds to differ from anticipated cash outlays. Monsanto generally uses commodity futures and options contracts to manage these risks. Monsanto’s energy and raw material risk management strategy is to use derivative instruments to minimize significant unanticipated manufacturing cost fluctuations that may arise from volatility in natural gas, diesel and ethylene prices. Monsanto’s interest rate risk management strategy is to use derivative instruments, such as forward-starting interest rate swaps and option contracts, to minimize significant unanticipated earnings fluctuations that may arise from volatility in interest rates of the company’s borrowings and to manage the interest rate sensitivity of its debt. For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive loss and reclassified into earnings in the period or periods during which the hedged transaction affects earnings. Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings. The maximum term over which the company is hedging exposures to the variability of cash flow (for all forecasted transactions) is 21 months for foreign currency hedges and 33 months for commodity hedges. During the next 12 months, a pretax net loss of approximately $77 million is expected to be reclassified from accumulated other comprehensive loss into earnings. No cash flow hedges were discontinued during the three months ended Nov. 30, 2014. A pretax loss of less than $1 million during the three months ended Nov. 30, 2015, was reclassified into cost of goods sold in the Statements of Consolidated Operations as a result of the discontinuance of commodity cash flow hedges because it was probable that the original forecasted transaction would not occur by the end of the originally specified time period. Fair Value Hedges The company uses commodity futures, forwards and options contracts as fair value hedges to manage the value of its soybean inventory and other assets. For derivative instruments that are designated and qualify as fair value hedges, both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. No fair value hedges were discontinued during the three months ended Nov. 30, 2015, and Nov. 30, 2014. Derivatives Not Designated as Hedging Instruments The company uses foreign currency contracts to hedge the effects of fluctuations in exchange rates on foreign currency denominated third-party and intercompany receivables and payables. Both the gain or loss on the derivative and the offsetting loss or gain on the hedged item attributable to the hedged risk are recognized in current earnings. The company uses commodity option contracts to hedge anticipated cash payments to growers in the United States, Mexico and Brazil, which can fluctuate with changes in commodity price. Because these option contracts do not meet the provisions specified by the Derivatives and Hedging topic of the ASC, they do not qualify for hedge accounting treatment. Accordingly, the gain or loss on these derivatives is recognized in current earnings. To reduce credit exposure in Latin America, Monsanto collects payments on certain customer accounts in grain. Such payments in grain are negotiated at or near the time Monsanto’s products are sold to the customers and are valued at the prevailing grain commodity prices. By entering into forward sales contracts related to grain, Monsanto mitigates the commodity price exposure from the time a contract is signed with a customer until the time a grain merchant collects the grain from the customer on Monsanto’s behalf. The forward sales contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Monsanto uses interest rate contracts to minimize the variability of forecasted cash flows arising from the company’s consolidated VIE in Brazil. The interest rate contracts do not qualify for hedge accounting treatment under the Derivatives and Hedging Topic of the ASC. Accordingly, the gain or loss on these derivatives is recognized in current earnings. Financial instruments are neither held nor issued by the company for trading purposes. The notional amounts of the company’s derivative instruments outstanding as of Nov. 30, 2015, and Aug. 31, 2015, are as follows:
The net presentation of the company’s derivative instruments outstanding was as follows:
The gains and losses on the company’s derivative instruments were as follows:
Most of the company’s outstanding foreign currency derivatives are covered by International Swap and Derivatives Association (ISDA) Master Agreements with the counterparties. There are no requirements to post collateral under these agreements; however, should Monsanto’s credit rating fall below a specified rating immediately following the merger of the company with another entity, the counterparty may require all outstanding derivatives under the ISDA Master Agreement to be settled immediately at current market value, which equals carrying value. Foreign currency derivatives that are not covered by ISDA Master Agreements do not have credit-risk-related contingent provisions. Most of Monsanto’s outstanding commodity derivatives are listed commodity futures, and the company is required by the relevant commodity exchange to post collateral each day to cover the change in the fair value of these futures in the case of an unrealized loss position. Non-exchange-traded commodity derivatives and interest rate contracts may be covered by the aforementioned ISDA Master Agreements and would be subject to the same credit-risk-related contingent provisions. The aggregate fair value of all derivative instruments under ISDA Master Agreements that are in a liability position was $44 million and $41 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively, which is the amount that would be required for settlement if the credit-risk-related contingent provisions underlying these agreements were triggered. Credit Risk Management Monsanto invests excess cash in deposits with major banks or money market funds throughout the world in high-quality short-term debt instruments. Such investments are made only in instruments issued or enhanced by high-quality institutions. As of Nov. 30, 2015, and Aug. 31, 2015, the company had no financial instruments that represented a significant concentration of credit risk. Limited amounts are invested in any single institution to minimize risk. The company has not incurred any credit risk losses related to those investments. The company sells a broad range of agricultural products to a diverse group of customers throughout the world. In the United States, the company makes substantial sales to relatively few large wholesale customers. The company’s business is highly seasonal, and is subject to weather conditions that affect commodity prices and seed yields. Credit limits, ongoing credit evaluation and account monitoring procedures are used to minimize the risk of loss. Collateral is secured when it is deemed appropriate by the company. Monsanto regularly evaluates its business practices to minimize its credit risk and periodically engages multiple banks in the United States, Argentina, Brazil and Europe in the development of customer financing options that involve direct bank financing of customer purchases. For further information on these programs, see Note 4 — Customer Financing Programs. |
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
POSTRETIREMENT BENEFITS-PENSIONS, HEALTH CARE AND OTHER | POSTRETIREMENT BENEFITS — PENSIONS, HEALTH CARE AND OTHER Most of Monsanto’s U.S. employees hired prior to July 8, 2012 are covered by noncontributory pension plans sponsored by the company. Effective July 8, 2012, the U.S. pension plan was closed to new entrants; there were no significant changes to the U.S. pension plan for eligible employees hired prior to that date. The company also provides certain postretirement health care and life insurance benefits for retired employees through insurance contracts. The company’s net periodic benefit cost for pension benefits and health care and other postretirement benefits include the following components:
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STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK BASED COMPENSATION PLANS | STOCK-BASED COMPENSATION PLANS The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three months ended Nov. 30, 2015, and Nov. 30, 2014, respectively. Stock-based compensation cost capitalized in inventory was $3 million as of both Nov. 30, 2015, and Aug. 31, 2015.
The following table summarizes stock-based compensation activity for and as of the three months ended Nov. 30, 2015. Monsanto Stock Plans include employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012, and employees under The Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013. The Director Plan includes members of the Board of Directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan.
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CAPITAL STOCK CAPITAL STOCK |
3 Months Ended |
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Nov. 30, 2015 | |
CAPITAL STOCK [Abstract] | |
CAPITAL STOCK | 1, 2014, Monsanto entered into uncollared ASR agreements with each of JPMorgan and Goldman, Sachs & Co. (“Goldman Sachs”). The ASR agreements were completed and settled in accordance with the terms of the agreements in fiscal year 2015. Under the ASR agreements, the company purchased approximately 51.8 million shares of Monsanto common stock for an aggregate price $6.0 billion, which was accounted for as an increase to treasury stock. The ASR agreements were entered into pursuant to share repurchase authorizations announced in June 2013 and in June 2014. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the after-tax components of accumulated other comprehensive loss and changes thereto:
The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share ("EPS") was computed using the weighted-average number of common shares outstanding during the periods shown in the table below. The diluted EPS computation takes into account the effect of dilutive potential common shares when in a net income position. Potential common shares consist primarily of stock options, restricted stock, restricted stock units and directors’ deferred shares calculated using the treasury stock method and are excluded if their effect is antidilutive. Of those antidilutive options, certain options were excluded from the computations of dilutive potential common shares as their exercise prices were greater than the average market price of the common shares for the period.
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SUPPLEMENTAL CASH FLOW INFORMATION |
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SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION Cash payments for interest and taxes were as follows:
During the three months ended Nov. 30, 2015, and Nov. 30, 2014, the company recorded the following noncash transactions:
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Nov. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Environmental and Litigation Liabilities: Monsanto is involved in environmental remediation and legal proceedings to which we are party in our own name and proceedings to which our former parent, Pharmacia LLC ("Pharmacia"), or its former subsidiary, Solutia, Inc. ("Solutia"), is a party but that we manage and for which we are responsible pursuant to certain indemnification agreements. In addition, Monsanto has liabilities established for various product claims. With respect to certain of these proceedings, Monsanto has a liability recorded of $354 million and $356 million as of Nov. 30, 2015, and Aug. 31, 2015, respectively, for the estimated contingent liabilities. Information regarding the environmental liabilities appears in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2015. Litigation: The above liability includes amounts related to certain third-party litigation with respect to Monsanto’s business, as well as tort litigation related to Pharmacia’s former chemical business, including lawsuits involving polychlorinated biphenyls (PCBs), dioxins, and other chemical and premises liability litigation. Additional matters that are not reflected in the liability may arise in the future, and Monsanto may manage, settle, or pay judgments or damages with respect thereto in order to mitigate contesting potential liability. Following is a description of one of the more significant litigation matters. The company has been named in approximately 30 personal injury lawsuits filed over several years on behalf of approximately 750 persons in state courts in St. Louis, Missouri and Los Angeles, California. The suits primarily claim that plaintiffs’ various forms of non-Hodgkin lymphoma have been caused by their trace levels of PCBs allegedly manufactured by Pharmacia’s former chemical business over four decades ago, which entered the environment from a wide variety of end-use applications in products made by others. While the company remains engaged in efforts to resolve the injury claims, the company believes it has meritorious legal and factual defenses to these cases and is vigorously defending them. The company is defending such claims under indemnity agreements resulting from its 2000 spinoff from Pharmacia and subsequent agreements under Solutia’s February 2008 plan of reorganization. Including litigation reflected in the liability, Monsanto is involved in various legal proceedings that arise in the ordinary course of its business or pursuant to Monsanto’s indemnification obligations to Pharmacia, as well as proceedings that management has considered to be material under SEC regulations. Some of the lawsuits seek damages in very large amounts or seek to restrict the company’s business activities. Monsanto believes that it has meritorious legal arguments and will continue to represent its interests vigorously in all of the proceedings that it is defending or prosecuting. Management does not anticipate the ultimate liabilities resulting from such proceedings, or the proceedings reflected in the above liability, will have a material adverse effect on Monsanto’s consolidated results of operations, financial position, cash flows or liquidity. Legal actions have been filed in Brazil that raise issues challenging the right to collect certain royalties for Roundup Ready soybeans. Although Brazilian law clearly states that the pipeline patents protecting these products have the duration of the corresponding U.S. patent (2014 for Roundup Ready soybeans), the duration (and application) of these pipeline patents is currently under judicial review in Brazil. Monsanto believes it has meritorious legal arguments and will continue to represent its interests vigorously in these proceedings. The current estimate of the company’s reasonably possible loss contingency is not material to consolidated results of operations, financial position, cash flows or liquidity. Other Contingencies: The staff of the SEC is conducting an investigation of financial reporting associated with Monsanto's customer incentive programs for glyphosate products for the fiscal years 2009 and 2010, and Monsanto has received subpoenas in connection therewith. Monsanto has preliminarily agreed to the terms of a potential settlement of the investigation that the SEC enforcement staff has indicated it is prepared to recommend to the Commission. The proposed settlement is subject to acceptance and authorization by the Commission. The proposed settlement would, among other things, require Monsanto to pay an $80 million penalty, which Monsanto recorded in fiscal year 2015 in selling, general and administrative expenses in the Statement of Consolidated Operation. However, the terms of the settlement remain subject to the approval of the Commission. Accordingly there can be no assurance that Monsanto's efforts to resolve the SEC's investigation will be successful or that the settlement amount will be as anticipated, and Monsanto cannot predict the ultimate timing or the final terms of the settlement. Guarantees: Disclosures regarding the guarantees Monsanto provides for certain customer loans in the United States, Latin America and Europe can be found in Note 4 — Customer Financing Programs — of this Form 10-Q. Except as described in that note, there have been no significant changes to guarantees made by Monsanto since Aug. 31, 2015. Disclosures regarding these guarantees made by Monsanto can be found in Note 24 — Commitments and Contingencies — of the notes to the consolidated financial statements contained in Monsanto’s Report on Form 10-K for the fiscal year ended Aug. 31, 2015. Off-Balance Sheet Arrangement: Monsanto is in the process of making a significant expansion of its Chesterfield, Missouri, facility. In December 2013, Monsanto executed the first of a series of incentive agreements with the County of St. Louis, Missouri. Under these agreements Monsanto has transferred the Chesterfield, Missouri, facility to St. Louis County and received Industrial Revenue Bonds in the amount of up to $470 million, which enables the company to reduce the cost of constructing and operating the expansion by reducing certain state and local tax expenditures. Monsanto immediately leased the facility from the County of St. Louis and has an option to purchase the facility upon tendering the Industrial Revenue Bonds received to the County. The payments due to the company in relation to the Industrial Revenue Bonds and owed by the company in relation to the lease of the facilities qualify for the right of offset under ASC 210, Balance Sheet, in the Statements of Consolidated Financial Position. As such, neither the Industrial Revenue Bonds nor the lease obligation are recorded in the Statements of Consolidated Financial Position as an asset or liability, respectively. The Chesterfield facilities and the expansion are being treated as being owned by Monsanto. |
SEGMENT AND GEOGRAPHIC DATA |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION Monsanto conducts its worldwide operations through global businesses, which are aggregated into reportable segments based on similarity of products, production processes, customers, distribution methods and economic characteristics. The operating segments are aggregated into two reportable segments: Seeds and Genomics and Agricultural Productivity. The Seeds and Genomics segment consists of the global seeds and related traits businesses, biotechnology platforms and digital agriculture. Within the Seeds and Genomics segment, Monsanto’s significant operating segments are corn seed and traits, soybean seed and traits, cotton seed and traits, vegetable seeds and all other crops seeds and traits. The Agricultural Productivity reportable segment consists of the Agricultural Productivity operating segment. EBIT is defined as earnings before interest and taxes and is an operating performance measure for the two reportable segments. EBIT is useful to management in demonstrating the operational profitability of the segments by excluding interest and taxes, which are generally accounted for across the entire company on a consolidated basis. Sales between segments were not significant. Certain SG&A expenses are allocated between segments based on the segment’s relative contribution to total Monsanto operations. Allocation percentages remain consistent for fiscal years 2015 and 2016. Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table as follows:
A reconciliation of EBIT to net income for each period is as follows:
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SUBSEQUENTS EVENT |
3 Months Ended |
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Nov. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | On Dec. 7, 2015, the Board of Directors declared a quarterly dividend on its common shares of 54 cents per share. The dividend is payable on Jan. 29, 2016, to shareowners of record on Jan. 8, 2016. Subsequent to Nov. 30, 2015, the Argentine government lifted certain currency controls that significantly impacted the value of the Argentine peso compared to the U.S. dollar. The devaluation is expected to have a negative material impact on the company's financial results in the second quarter of fiscal year 2016 upon remeasurement of Argentine net assets to the U.S. dollar. |
BACKGROUND AND BASIS OF PRESENTATION BACKGROUND AND BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Nov. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Promotional, Advertising and Customer Incentive Program Costs | Promotional, Advertising and Customer Incentive Program Costs: Promotional and advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the Statements of Consolidated Operations. Customer incentive program costs are recorded in accordance with the Revenue Recognition topic of the Accounting Standards Codification ("ASC"), based on specific performance criteria met by our customers, such as purchase volumes, promptness of payment and market share increases. The company introduced new Agricultural Productivity customer incentive programs during first quarter 2016 providing certain customers price protection consideration if standard published prices are lowered from the price the distributor was charged on eligible products on or before Apr. 30, 2016. The associated cost of these programs is recorded in net sales in the Statement of Consolidated Operations. As actual expenses are not known at the time of sale, an estimate based on the best available information (such as historical experience and market research) is used as a basis for recording customer incentive program liabilities. Management analyzes and reviews the customer incentive program balances on a quarterly basis and adjustments are recorded as appropriate. |
RESTRUCTURING (Tables) |
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Nov. 30, 2015 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | Restructuring charges were recorded in the Statement of Consolidated Operations as follows:
The following table displays the pretax charges incurred by segment under the 2015 Restructuring Plan.
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Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activities related to the company's 2015 Restructuring Plan.
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CUSTOMER FINANCING PROGRAMS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CUSTOMER FINANCING PROGRAMS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer Financing Programs | Monsanto participates in customer financing programs as follows:
The gross amounts of receivables sold under transactions that qualify for sales treatment were:
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RECEIVABLES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance For Doubtful Long Term Receivables | The following table displays a roll forward of the allowance for credit losses related to long-term customer receivables.
(1)Includes reclassifications from the allowance for current receivables and foreign currency translation adjustments. |
INVENTORY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventory | Components of inventory are:
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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Carrying Amount of Goodwill | Changes in the net carrying amount of goodwill for the first three months of fiscal year 2016, by segment, are as follows:
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Other Intangible Assets Information | Information regarding the company’s other intangible assets is as follows:
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Intangible Assets Future Amortization Expense | The estimated intangible asset amortization expense for fiscal year 2016 through fiscal year 2020 is as follows:
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FAIR VALUE MEASUREMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables set forth by level Monsanto’s assets and liabilities disclosed at fair value on a recurring basis as of Nov. 30, 2015, and Aug. 31, 2015. As required by the Fair Value Measurements and Disclosures topic of the ASC, assets and liabilities are classified in their entirety based on the lowest level of input that is a significant component of the fair value measurement. Monsanto’s assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the classification of fair value assets and liabilities within the fair value hierarchy levels.
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Level 3 Rollforward | The following table summarizes the change in fair value of the Level 3 long-term debt instrument for the three months ended Nov. 30, 2015.
The following table summarizes the change in fair value of the Level 3 short-term debt instrument for the three months ended Nov. 30, 2015.
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FINANCIAL INSTRUMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments (Notional Amounts) | The notional amounts of the company’s derivative instruments outstanding as of Nov. 30, 2015, and Aug. 31, 2015, are as follows:
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Fair Values of Derivative Instruments | The net presentation of the company’s derivative instruments outstanding was as follows:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains Losses of Derivative Instruments | The gains and losses on the company’s derivative instruments were as follows:
|
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit Cost |
|
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Net Periodic Cost Postretirement |
|
STOCK BASED COMPENSATION PLANS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Stock Based Compensation | The following table shows total stock-based compensation expense included in the Statements of Consolidated Operations for the three months ended Nov. 30, 2015, and Nov. 30, 2014, respectively. Stock-based compensation cost capitalized in inventory was $3 million as of both Nov. 30, 2015, and Aug. 31, 2015.
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Restricted Stock | The following table summarizes stock-based compensation activity for and as of the three months ended Nov. 30, 2015. Monsanto Stock Plans include employees under the Monsanto Company 2005 Long-Term Incentive Plan, as amended and restated effective Jan. 24, 2012, and employees under The Climate Corporation 2006 Stock Plan, as amended on Oct. 30, 2013. The Director Plan includes members of the Board of Directors under the Monsanto Non-Employee Director Equity Incentive Compensation Plan.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Income | The following table sets forth the after-tax components of accumulated other comprehensive loss and changes thereto:
|
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Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table provides additional information regarding items reclassified out of accumulated other comprehensive loss into earnings.
|
EARNINGS PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Basic Earnings Per Share Table |
|
SUPPLEMENTAL CASH FLOW INFORMATION SUPPLEMENTAL CASH FLOW INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||
Supplemental Cash Flow Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Cash Payments For Interest And Taxes | Cash payments for interest and taxes were as follows:
|
SEGMENT AND GEOGRAPHIC DATA (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Nov. 30, 2015 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Segment Information | Data for the Seeds and Genomics and Agricultural Productivity reportable segments, as well as for Monsanto’s significant operating segments, is presented in the table as follows:
|
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The reconciliation of EBIT to Net Income | A reconciliation of EBIT to net income for each period is as follows:
|
BACKGROUND AND BASIS OF PRESENTATION BACKGROUND AND BASIS OF PRESENTATION (Details) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015
USD ($)
segment
|
Nov. 02, 2015
USD ($)
|
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of Reportable Segments | segment | 2 | |
Earn-out period, length of time | 10 years | |
Precision Planting [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Consideration | $ 190 | |
Other Current Assets [Member] | Precision Planting [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets | $ 186 | |
Other Current Liabilities [Member] | Precision Planting [Member] | Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Liabilities | $ 7 |
RESTRUCTURING - Schedule of restructuring charges recored in the statement of consolidated operations (Details) - USD ($) $ in Millions |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Reserve, Noncurrent | $ 133 | $ 47 | ||||
Restructuring Charges | (266) | $ 0 | ||||
Cost of Sales [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | [1] | (52) | ||||
Restructuring Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | [1] | (266) | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | (318) | |||||
Income Tax Expense (Benefit) [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | 108 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | (210) | |||||
Seeds And Genomics [Member] | Cost of Sales [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | (52) | |||||
Seeds And Genomics [Member] | Restructuring Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | (237) | |||||
Agricultural Productivity [Member] | Restructuring Charges [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring Charges | $ (29) | |||||
|
RESTRUCTURING - Pretax restructuring charges related to 2015 restructuring (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 266 | $ 0 | |
Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 318 | $ 811 | |
Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 217 | 434 | |
Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2 | 2 | |
Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24 | 105 | |
Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 37 | 88 | |
Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 38 | 182 | |
Seeds And Genomics [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 289 | 769 | |
Seeds And Genomics [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 208 | 412 | |
Seeds And Genomics [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2 | 2 | |
Seeds And Genomics [Member] | Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24 | 105 | |
Seeds And Genomics [Member] | Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 37 | 88 | |
Seeds And Genomics [Member] | Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 18 | 162 | |
Agricultural Productivity [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 29 | 42 | |
Agricultural Productivity [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 9 | 22 | |
Agricultural Productivity [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | |
Agricultural Productivity [Member] | Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | |
Agricultural Productivity [Member] | Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 0 | 0 | |
Agricultural Productivity [Member] | Goodwill and Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 20 | $ 20 |
RESTRUCTURING - Restructuring Charges by Activity (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring charges | $ 266 | $ 0 | ||||
Restructuring, net | 208 | $ 0 | ||||
Restructuring Plan 2015 [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Liability as of Aug. 31, 2015 | 217 | $ 416 | ||||
Restructuring charges | 318 | 811 | ||||
Restructuring, net | (11) | |||||
Asset impairments and write-offs | (99) | |||||
Foreign currency impact | (9) | |||||
Ending Liability as of Nov. 30, 2015 | 217 | |||||
Employee Severance [Member] | Restructuring Plan 2015 [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Liability as of Aug. 31, 2015 | [1] | 217 | 416 | |||
Restructuring charges | 217 | 434 | ||||
Restructuring, net | 9 | |||||
Asset impairments and write-offs | 0 | |||||
Foreign currency impact | (9) | |||||
Ending Liability as of Nov. 30, 2015 | [1] | 217 | ||||
Facility Closing [Member] | Restructuring Plan 2015 [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Liability as of Aug. 31, 2015 | 0 | 0 | ||||
Restructuring charges | 2 | 2 | ||||
Restructuring, net | (2) | |||||
Asset impairments and write-offs | 0 | |||||
Ending Liability as of Nov. 30, 2015 | 0 | |||||
Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Beginning Liability as of Aug. 31, 2015 | 0 | $ 0 | ||||
Restructuring charges | 99 | |||||
Restructuring, net | 0 | |||||
Asset impairments and write-offs | (99) | |||||
Ending Liability as of Nov. 30, 2015 | $ 0 | |||||
|
RESTRUCTURING - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Nov. 30, 2015 |
|
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 266 | $ 0 | |
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Extraordinary Items, Noncontrolling Interest [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 318 | ||
Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 318 | $ 811 | |
Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 217 | 434 | |
Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2 | 2 | |
Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 99 | ||
Impairment in value of Property, Plant and Equipment [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 24 | 105 | |
Inventory Valuation and Obsolescence [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 37 | 88 | |
Other Intangible Assets [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 38 | ||
Minimum [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 1,100 | 1,100 | |
Minimum [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 475 | 475 | |
Minimum [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 175 | 175 | |
Minimum [Member] | Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 450 | 450 | |
Maximum [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 1,200 | 1,200 | |
Maximum [Member] | Employee Severance [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 510 | 510 | |
Maximum [Member] | Facility Closing [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | 205 | 205 | |
Maximum [Member] | Impairment Of Asset [Member] | Restructuring Plan 2015 [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Estimated restructuring charges | $ 485 | $ 485 |
CUSTOMER FINANCING PROGRAMS (Details) $ in Millions, BRL in Billions |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015
USD ($)
|
Nov. 30, 2015
BRL
|
Nov. 30, 2014
USD ($)
|
Aug. 31, 2015
USD ($)
|
||||||||
US agreement to sell trade receivables [Member] | |||||||||||
Customer Financing Programs [Line Items] | |||||||||||
Outstanding balance | [1] | $ 583 | $ 851 | ||||||||
Maximum future payout under recourse provisions | [1] | 58 | 125 | ||||||||
Transactions that Qualify for Sales Treatment | [1] | 16 | $ 4 | ||||||||
Maximum Amount of Potential Sales of Receivables | 1,400 | ||||||||||
Other agreements to sell trade receivables [Member] | |||||||||||
Customer Financing Programs [Line Items] | |||||||||||
Outstanding balance | [2] | 54 | 124 | ||||||||
Maximum future payout under recourse provisions | [2] | 19 | 22 | ||||||||
Transactions that Qualify for Sales Treatment | [2] | 21 | $ 23 | ||||||||
Agreements With Lenders [Member] | |||||||||||
Customer Financing Programs [Line Items] | |||||||||||
Outstanding balance | [3] | 97 | 75 | ||||||||
Maximum future payout under recourse provisions | [3] | 71 | $ 62 | ||||||||
Brazil Revolving Financing Program [Member] | |||||||||||
Customer Financing Programs [Line Items] | |||||||||||
Maximum Amount of Potential Sales of Receivables | $ 260 | BRL 1 | |||||||||
|
VARIABLE INTEREST ENTITIES Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Financial or Other Support, Percentage | 10.00% | |
Cost Method Investments | $ 93 | $ 90 |
Senior Interest [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 90.00% | 90.00% |
Monsanto Interest [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 10.00% | 10.00% |
Brazil Revolving Financing Program [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 11 | $ 11 |
Biotechnology Company [Member] | ||
Revolving Financing Programs [Line Items] | ||
Variable Interest Entity, Reporting Entity Involvement, Maximum Loss Exposure, Amount | $ 62 | $ 62 |
VARIABLE INTEREST ENTITIES VARIABLE INTEREST ENTITIES Schedules (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|
Biotechnology Company [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 62 | $ 62 |
Variable Interest Entity, Financial or Other Support, Maximum Commitment Amount | 118 | |
Brazil Revolving Financing Program [Member] | ||
Variable Interest Entity [Line Items] | ||
Maximum Exposure to Loss | $ 11 | $ 11 |
Monsanto Interest [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 10.00% | 10.00% |
Senior Interest [Member] | ||
Variable Interest Entity [Line Items] | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 90.00% | 90.00% |
RECEIVABLES (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|||
Allowance For Doubtful Accounts Current [Abstract] | ||||
Net allowances | $ 57 | $ 59 | ||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||
Beginning Balance | 120 | 125 | ||
Incremental Provision | 2 | 9 | ||
Recoveries | (3) | |||
Write-offs | (3) | (28) | ||
Other | [1] | 4 | 17 | |
Ending Balance | 123 | 120 | ||
Long Term Receivables [Abstract] | ||||
Long term customer receivables, gross | $ 153 | $ 156 | ||
|
INVENTORY (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Finished Goods | $ 1,829 | $ 1,603 |
Goods In Process | 1,706 | 1,627 |
Raw Materials and Supplies | 497 | 420 |
Inventory at FIFO Cost | 4,032 | 3,650 |
Excess of FIFO over LIFO Cost | (160) | (154) |
Total | $ 3,872 | $ 3,496 |
GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of net carrying amount of goodwill (Details) $ in Millions |
3 Months Ended |
---|---|
Nov. 30, 2015
USD ($)
| |
Goodwill [Roll Forward] | |
Balance as of Aug. 31, 2015 | $ 4,061 |
Effect of foreign currency translation and other adjustments | (35) |
Reclass to held for sale | (41) |
Balance as of Nov. 30, 2015 | 3,985 |
Seeds And Genomics [Member] | |
Goodwill [Roll Forward] | |
Balance as of Aug. 31, 2015 | 4,004 |
Effect of foreign currency translation and other adjustments | (37) |
Reclass to held for sale | (41) |
Balance as of Nov. 30, 2015 | 3,926 |
Agricultural Productivity [Member] | |
Goodwill [Roll Forward] | |
Balance as of Aug. 31, 2015 | 57 |
Effect of foreign currency translation and other adjustments | 2 |
Reclass to held for sale | 0 |
Balance as of Nov. 30, 2015 | $ 59 |
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Information of other intangible assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | $ 2,807 | $ 3,089 | |
Accumulated Amortization | (1,693) | (1,858) | |
Net | 1,114 | 1,231 | |
Total Other Intangible Assets, Carrying Amount | 2,898 | 3,190 | |
Total Other Intangible Assets, net | 1,205 | 1,332 | |
Amortization expense | 31 | $ 37 | |
Acquired Intellectual Property [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 1,033 | 1,168 | |
Accumulated Amortization | (543) | (598) | |
Net | 490 | 570 | |
Acquired Germplasm [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 1,065 | 1,074 | |
Accumulated Amortization | (750) | (750) | |
Net | 315 | 324 | |
Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 340 | 353 | |
Accumulated Amortization | (151) | (152) | |
Net | 189 | 201 | |
Customer Relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 296 | 318 | |
Accumulated Amortization | (206) | (212) | |
Net | 90 | 106 | |
Other Intangible Assets [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Carrying Amount | 73 | 176 | |
Accumulated Amortization | (43) | (146) | |
Net | 30 | 30 | |
In Process Research and Development [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
In Process Research & Development, Indefinite Lives | $ 91 | $ 101 |
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS Schedule of estimated amortization expense (Details) $ in Millions |
Nov. 30, 2015
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $ 145 |
2016 | 145 |
2017 | 108 |
2018 | 107 |
2019 | $ 106 |
INVESTMENTS Investments (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Schedule of Investments and Equity Affiliates [Line Items] | ||
Short-term investments | $ 47 | $ 47 |
Fair Value | 14 | 17 |
Recorded cost | $ 93 | $ 90 |
DEFERRED REVENUE (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Deferred Revenue Disclosure [Abstract] | ||
Deferred revenues | $ 3,146 | $ 370 |
DEBT AND OTHER CREDIT ARRANGEMENTS (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|||||||
Debt Instrument [Line Items] | ||||||||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2016: $94 and 2015: $0) | $ 1,788 | $ 615 | ||||||
Short-term Debt, Fair Value | [1] | 1,790 | 619 | |||||
Long-term Debt, Fair Value | 7,515 | [1] | 8,124 | [2] | ||||
Senior Notes Due Twenty Forty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 365 | |||||||
Interest Rate | 4.30% | |||||||
Maturity Date | Jan. 29, 2045 | |||||||
Senior Notes Due Twenty Twenty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 300 | |||||||
Interest Rate | 2.85% | |||||||
Maturity Date | Apr. 15, 2025 | |||||||
Senior Notes Due April Twenty Forty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 500 | |||||||
Interest Rate | 3.95% | |||||||
Maturity Date | Apr. 15, 2045 | |||||||
Line of Credit [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility, maximum borrowing capacity | $ 3,000 | |||||||
Line of Credit Facility, Fair Value of Amount Outstanding | 0 | |||||||
Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Short-term debt, including current portion of long-term debt (variable interest entity restricted - 2016: $94 and 2015: $0) | $ 649 | $ 0 | ||||||
|
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS Fair Value Hierarchy Levels (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash equivalents | $ 1,786 | $ 3,213 | |||||||
Short-term investments | 47 | 47 | |||||||
Equity securities | 14 | 17 | |||||||
Foreign currency contracts | 39 | 40 | |||||||
Commodity contracts | 8 | 8 | |||||||
Interest rate contracts | 2 | ||||||||
Total Assets at Fair Value | 1,894 | 3,327 | |||||||
Foreign currency contracts | 51 | 11 | |||||||
Commodity contracts | 59 | 85 | |||||||
Interest Rate Derivative Liabilities, at Fair Value | 5 | ||||||||
Short-term Debt, Fair Value | [1] | 1,790 | 619 | ||||||
Long-term Debt, Fair Value | 7,515 | [1] | 8,124 | [2] | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | 9,420 | 8,839 | |||||||
Assets, Fair Value Disclosure, Nonrecurring | 0 | $ 0 | |||||||
Liabilities, Fair Value Adjustment | 0 | $ 0 | |||||||
Fair Value, Inputs, Level 1 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash equivalents | 1,786 | 3,213 | |||||||
Short-term investments | 47 | 47 | |||||||
Equity securities | 14 | 17 | |||||||
Foreign currency contracts | 0 | 0 | |||||||
Commodity contracts | 3 | 1 | |||||||
Interest rate contracts | 0 | ||||||||
Total Assets at Fair Value | 1,850 | 3,278 | |||||||
Foreign currency contracts | 0 | 0 | |||||||
Commodity contracts | 14 | 35 | |||||||
Interest Rate Derivative Liabilities, at Fair Value | 0 | ||||||||
Short-term Debt, Fair Value | 0 | [1] | 0 | ||||||
Long-term Debt, Fair Value | 0 | [1] | 0 | [2] | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | 14 | 35 | |||||||
Fair Value, Inputs, Level 2 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash equivalents | 0 | 0 | |||||||
Short-term investments | 0 | 0 | |||||||
Equity securities | 0 | 0 | |||||||
Foreign currency contracts | 39 | 40 | |||||||
Commodity contracts | 5 | 7 | |||||||
Interest rate contracts | 2 | ||||||||
Total Assets at Fair Value | 44 | 49 | |||||||
Foreign currency contracts | 51 | 11 | |||||||
Commodity contracts | 45 | 50 | |||||||
Interest Rate Derivative Liabilities, at Fair Value | 5 | ||||||||
Short-term Debt, Fair Value | 1,696 | [1] | 619 | ||||||
Long-term Debt, Fair Value | 7,515 | [1] | 8,028 | [2] | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | 9,312 | 8,708 | |||||||
Fair Value, Inputs, Level 3 [Member] | |||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||||||
Cash equivalents | 0 | 0 | |||||||
Short-term investments | 0 | 0 | |||||||
Equity securities | 0 | 0 | |||||||
Foreign currency contracts | 0 | 0 | |||||||
Commodity contracts | 0 | 0 | |||||||
Interest rate contracts | 0 | ||||||||
Total Assets at Fair Value | 0 | 0 | |||||||
Foreign currency contracts | 0 | 0 | |||||||
Commodity contracts | 0 | 0 | |||||||
Interest Rate Derivative Liabilities, at Fair Value | 0 | ||||||||
Short-term Debt, Fair Value | 94 | [1] | 0 | ||||||
Long-term Debt, Fair Value | 0 | [1] | 96 | [2] | |||||
Total Liabilities Recorded and Not Recorded at Fair Value | $ 94 | $ 96 | |||||||
|
FAIR VALUE MEASUREMENTS Summary of the Change in Level 3 Liability (Details) $ / shares in Units, $ in Millions |
3 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015
USD ($)
$ / shares
shares
|
Nov. 30, 2015
BRL / shares
shares
|
Aug. 31, 2015
$ / shares
shares
|
Aug. 31, 2015
BRL / shares
shares
|
||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Mandatorily Redeemable Shares Outstanding | shares | 350,000 | 350,000 | 350,000 | 350,000 | |||||
Mandatorily Redeemable Shares, Par Value | (per share) | $ 260 | BRL 1,000 | $ 274 | BRL 1,000 | |||||
Short-term Debt [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Beginning Balance | $ 0 | ||||||||
Reclassification | 96 | ||||||||
Accretion expense | 3 | ||||||||
Effect of foreign currency translation adjustments | (5) | ||||||||
Ending Balance | [1] | 94 | |||||||
Long-term Debt [Member] | |||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||||||
Beginning Balance | [2] | 96 | |||||||
Reclassification | (96) | ||||||||
Ending Balance | [2] | $ 0 | |||||||
|
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Aug. 31, 2015 |
|
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, Plant and Equipment, Net | $ 4,870 | $ 4,973 |
Other Intangible Assets, Net | 1,205 | $ 1,332 |
Seeds And Genomics [Member] | Impairment Of Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, Plant and Equipment, Net | 34 | |
Other Intangible Assets, Net | 16 | |
Other Assets | 7 | |
Seeds And Genomics [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Property, Plant and Equipment, Net | 10 | |
Other Intangible Assets, Net | 1 | |
Other Assets | 5 | |
Seeds And Genomics [Member] | Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 24 | |
Seeds And Genomics [Member] | Other Intangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 16 | |
Seeds And Genomics [Member] | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 2 | |
Seeds And Genomics [Member] | Cost of Goods Sold [Member] | Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 15 | |
Seeds And Genomics [Member] | Restructuring Charges [Member] | Property, Plant and Equipment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 9 | |
Seeds And Genomics [Member] | Restructuring Charges [Member] | Other Intangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 16 | |
Seeds And Genomics [Member] | Restructuring Charges [Member] | Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 2 | |
Agricultural Productivity [Member] | Impairment Of Asset [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Intangible Assets, Net | 20 | |
Agricultural Productivity [Member] | Estimate of Fair Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other Intangible Assets, Net | 1 | |
Agricultural Productivity [Member] | Other Intangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | 20 | |
Agricultural Productivity [Member] | Restructuring Charges [Member] | Other Intangible Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Impairment Charges | $ 20 |
FINANCIAL INSTRUMENTS Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Derivatives, Fair Value [Line Items] | |||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ (77) | ||
Discontinuation of Cash Flow Hedge | $ 0 | ||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 1 | ||
subject to master netting arrangement, or similar agreement [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Derivative Liability Subject to Master Netting Arrangement, or Similar Agreement | $ 44 | $ 41 | |
Foreign Exchange Contract [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 21 months | ||
Commodity Contracts | |||
Derivatives, Fair Value [Line Items] | |||
Maximum Length of Time Hedged in Cash Flow Hedge | 33 months |
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Notional Amounts of Derivative Instruments Outstanding (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
---|---|---|
Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | $ 1,126 | $ 1,197 |
Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 2,264 | 2,089 |
Foreign Exchange Contract [Member] | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 407 | 456 |
Foreign Exchange Contract [Member] | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 2,069 | 1,926 |
Commodity Contracts | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 569 | 591 |
Commodity Contracts | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 96 | 163 |
Interest Rate Contracts [Member] | Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | 150 | 150 |
Interest Rate Contracts [Member] | Not Designated as Hedging Instrument | ||
Derivatives, Notional [Line Items] | ||
Total Derivatives | $ 99 | $ 0 |
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Fair Value of Derivatives Outstanding (Details) - USD ($) $ in Millions |
Nov. 30, 2015 |
Aug. 31, 2015 |
||||||
---|---|---|---|---|---|---|---|---|
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | $ 47 | $ 50 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (14) | (35) | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 33 | 15 | ||||||
Derivative Asset, Fair Value of Collateral | 11 | 35 | ||||||
Derivative Asset | 44 | 50 | ||||||
Miscellaneous receivables | 1,000 | 803 | ||||||
Other Assets, Current | 393 | 199 | ||||||
Other Assets, Noncurrent | 624 | 610 | ||||||
Derivative Liability, Fair Value, Gross Liability | 115 | 96 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (14) | (35) | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 101 | 61 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 101 | 61 | ||||||
Miscellaneous short-term accruals (variable interest entity restricted - 2016: $7 and 2015: $7) | 1,078 | 791 | ||||||
Other Liabilities, Noncurrent | 358 | 345 | ||||||
Miscellaneous receivables | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 2 | |||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | |||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | |||||||
Derivative Asset, Fair Value of Collateral | 0 | |||||||
Derivative Asset | 2 | |||||||
Non-derivative Balances | 801 | |||||||
Other Assets | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 7 | 2 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (5) | (6) | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | (4) | ||||||
Derivative Asset, Fair Value of Collateral | 2 | 6 | ||||||
Derivative Asset | 4 | 2 | ||||||
Non-derivative Balances | 620 | 608 | ||||||
Derivative Liability, Fair Value, Gross Liability | 5 | 6 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (5) | (6) | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 0 | 0 | ||||||
Other current assets | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 40 | 46 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (9) | (29) | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 31 | 17 | ||||||
Derivative Asset, Fair Value of Collateral | 9 | 29 | ||||||
Derivative Asset | 40 | 46 | ||||||
Non-derivative Balances | 353 | 153 | ||||||
Derivative Liability, Fair Value, Gross Liability | 9 | 29 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (9) | (29) | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | 0 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 0 | 0 | ||||||
Miscellaneous short term accruals | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Non-derivative Balances | (991) | (744) | ||||||
Derivative Liability, Fair Value, Gross Liability | 87 | 47 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 87 | 47 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 87 | 47 | ||||||
Other liabilities | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Non-derivative Balances | (344) | (331) | ||||||
Derivative Liability, Fair Value, Gross Liability | 14 | 14 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 14 | 14 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 14 | 14 | ||||||
Foreign Exchange Contract [Member] | Other Assets | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 4 | [1] | 1 | [2] | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | [1] | 0 | [2] | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 4 | [1] | 1 | [2] | ||||
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Asset | 4 | [1] | 1 | [2] | ||||
Foreign Exchange Contract [Member] | Other current assets | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 27 | 25 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 27 | 25 | ||||||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Asset | 27 | 25 | ||||||
Foreign Exchange Contract [Member] | Other current assets | Not Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 8 | 14 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | 0 | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 8 | 14 | ||||||
Derivative Asset, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Asset | 8 | 14 | ||||||
Foreign Exchange Contract [Member] | Miscellaneous short term accruals | Not Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Liability, Fair Value, Gross Liability | 51 | 11 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 51 | 11 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 51 | 11 | ||||||
Commodity Contract [Member] | Other Assets | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 3 | 1 | ||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (5) | (6) | ||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (2) | (5) | ||||||
Derivative Asset, Fair Value of Collateral | 2 | 6 | ||||||
Derivative Asset | 0 | 1 | ||||||
Derivative Liability, Fair Value, Gross Liability | 5 | [1] | 6 | [2] | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (5) | [1] | (6) | [2] | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Liability | 0 | [1] | 0 | [2] | ||||
Commodity Contract [Member] | Other current assets | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 0 | [1] | 0 | [2] | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (9) | [1] | (29) | [2] | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | (9) | [1] | (29) | [2] | ||||
Derivative Asset, Fair Value of Collateral | 9 | [1] | 29 | [2] | ||||
Derivative Asset | 0 | [1] | 0 | [2] | ||||
Derivative Liability, Fair Value, Gross Liability | 9 | [1] | 29 | [2] | ||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | (9) | [1] | (29) | [2] | ||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Liability, Fair Value of Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Liability | 0 | [1] | 0 | [2] | ||||
Commodity Contract [Member] | Other current assets | Not Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 5 | [1] | 7 | [2] | ||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | [1] | 0 | [2] | ||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 5 | [1] | 7 | [2] | ||||
Derivative Asset, Fair Value of Collateral | 0 | [1] | 0 | [2] | ||||
Derivative Asset | 5 | [1] | 7 | [2] | ||||
Commodity Contract [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Liability, Fair Value, Gross Liability | 25 | 27 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 25 | 27 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 25 | 27 | ||||||
Commodity Contract [Member] | Miscellaneous short term accruals | Not Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Liability, Fair Value, Gross Liability | 6 | 9 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 6 | 9 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 6 | 9 | ||||||
Commodity Contract [Member] | Other liabilities | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Liability, Fair Value, Gross Liability | 14 | 14 | ||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | 0 | ||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 14 | 14 | ||||||
Derivative Liability, Fair Value of Collateral | 0 | 0 | ||||||
Derivative Liability | 14 | 14 | ||||||
Interest Rate Contracts [Member] | Miscellaneous receivables | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Asset, Fair Value, Gross Asset | 2 | |||||||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | 0 | |||||||
Derivative Asset, Fair Value, Amount Offset Against Collateral | 2 | |||||||
Derivative Asset, Fair Value of Collateral | 0 | |||||||
Derivative Asset | $ 2 | |||||||
Interest Rate Contracts [Member] | Miscellaneous short term accruals | Designated as Hedging Instrument | ||||||||
Derivatives, Fair Value [Line Items] | ||||||||
Derivative Liability, Fair Value, Gross Liability | 5 | |||||||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 0 | |||||||
Derivative Liability, Fair Value, Amount Offset Against Collateral | 5 | |||||||
Derivative Liability, Fair Value of Collateral | 0 | |||||||
Derivative Liability | $ 5 | |||||||
|
FINANCIAL INSTRUMENTS FINANCIAL INSTRUMENTS Gain (Loss) from Derivatives (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ (4) | $ 3 | |||||||||
Amount of Gain (Loss) Recognized in Income | (63) | (60) | |||||||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | 0 | 0 | |||||||||
Discontinuation of Cash Flow Hedge | 0 | ||||||||||
Foreign Currency Transaction Gain (Loss) Realized | (28) | 51 | |||||||||
Loss on Discontinuation of Cash Flow Hedge Due to Forecasted Transaction Probable of Not Occurring | 1 | ||||||||||
Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (4) | 3 | |||||||||
Amount of Gain (Loss) Recognized in Income | (9) | (5) | |||||||||
Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | (54) | (55) | |||||||||
Commodity Contracts | Cost of Sales [Member] | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | 0 | 3 | |||||||||
Commodity Contracts | Net Sales [Member] | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | 1 | 2 | |||||||||
Foreign Exchange Contract [Member] | Other expense, net [Member] | Not Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | [1] | (55) | (60) | ||||||||
Fair Value Hedges | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | [2] | 0 | (2) | ||||||||
Fair Value Hedges | Commodity Contracts | Other expense, net [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in Income | [2] | 0 | (4) | ||||||||
Cash Flow Hedging [Member] | Commodity Contracts | Cost of Sales [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [3] | (9) | (11) | ||||||||
Amount of Gain (Loss) Recognized in Income | [2],[4] | (17) | (3) | ||||||||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Cost of Sales [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [3] | 10 | 9 | ||||||||
Amount of Gain (Loss) Recognized in Income | [2],[4] | 7 | 0 | ||||||||
Cash Flow Hedging [Member] | Foreign Exchange Contract [Member] | Net Sales [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [3] | 2 | 19 | ||||||||
Amount of Gain (Loss) Recognized in Income | [2],[4] | 4 | 7 | ||||||||
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member] | Designated as Hedging Instrument | |||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | [3] | (7) | (14) | ||||||||
Amount of Gain (Loss) Recognized in Income | [2],[4] | $ (3) | $ (3) | ||||||||
|
POSTRETIREMENT BENEFITS - PENSIONS, HEALTH CARE AND OTHER (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
United States Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost for Benefits Earned During the Period | $ 16 | $ 16 |
Interest Cost on Benefit Obligation | 24 | 22 |
Assumed Return on Plan Assets | (39) | (38) |
Amortization of Unrecognized Net Loss (Gain) | 12 | 13 |
Curtailment and Settlement Charge | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost | 13 | 13 |
Foreign Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost for Benefits Earned During the Period | 3 | 3 |
Interest Cost on Benefit Obligation | 2 | 2 |
Assumed Return on Plan Assets | (2) | (3) |
Amortization of Unrecognized Net Loss (Gain) | 1 | 2 |
Curtailment and Settlement Charge | 0 | 1 |
Defined Benefit Plan, Net Periodic Benefit Cost | 4 | 5 |
Pension Plan, Defined Benefit [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost for Benefits Earned During the Period | 19 | 19 |
Interest Cost on Benefit Obligation | 26 | 24 |
Assumed Return on Plan Assets | (41) | (41) |
Amortization of Unrecognized Net Loss (Gain) | 13 | 15 |
Curtailment and Settlement Charge | 0 | 1 |
Defined Benefit Plan, Net Periodic Benefit Cost | 17 | 18 |
Postretirement and ESOP Liabilities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service Cost for Benefits Earned During the Period | 2 | 2 |
Interest Cost on Benefit Obligation | 1 | 2 |
Amortization of Unrecognized Net Loss (Gain) | (1) | (1) |
Defined Benefit Plan, Net Periodic Benefit Cost | $ 2 | $ 3 |
STOCK BASED COMPENSATION PLANS Schedule of Stock-based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Compensation cost capitalized | $ 3 | $ 3 | |
Cost of Goods Sold [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | 4 | $ 2 | |
Selling, General and Administrative Expenses [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | 25 | 25 | |
Research and Development Expenses [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | 8 | 8 | |
Pre-Tax Stock-Based Compensation Expense [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | 37 | 35 | |
Income Tax Benefit [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | (12) | (10) | |
Net Stock Based Compensation [Member] | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Allocated Stock Based Compensation Expense | $ 25 | $ 25 |
STOCK BASED COMPENSATION PLANS STOCK BASED COMPENSATION PLANS Restricted Stock (Details) $ / shares in Units, $ in Millions |
3 Months Ended |
---|---|
Nov. 30, 2015
USD ($)
$ / shares
shares
| |
Stock Options [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 2,217,810 |
Weighted-average grant date fair value per share | $ / shares | $ 20.62 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ | $ 74.7 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 1 year 6 months |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 706,483 |
Weighted-average grant date fair value per share | $ / shares | $ 87.68 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ | $ 134.1 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 2 years 1 month |
Directors Deferred Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 22,585 |
Weighted-average grant date fair value per share | $ / shares | $ 95.14 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ | $ 1.6 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 9 months |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted | shares | 6,825 |
Weighted-average grant date fair value per share | $ / shares | $ 91.94 |
Pre-tax unrecognized compensation expense, net of estimated forfeitures as applicable (in millions) | $ | $ 0.7 |
Remaining weighted-average period of expense recognition/requisite service periods (in years) | 1 year 7 months |
CAPITAL STOCK CAPITAL STOCK (Details) - USD ($) shares in Millions, $ in Millions |
1 Months Ended | 3 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 13, 2015 |
Jul. 01, 2014 |
Jun. 30, 2014 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Oct. 09, 2015 |
|
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,100 | |||||
Payments for Repurchase of Common Stock | $ 3,000 | $ 296 | ||||
Accelerated Share Repurchase [Member] | ||||||
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||
Stock Repurchase Program, Authorized Amount | $ 6,000 | $ 3,000 | ||||
Share Repurchase, Initial Shares Delivered | 28.4 | |||||
Payments for Repurchase of Common Stock | $ 3,000 | |||||
Share Repurchase, Initial Payment | 2,550 | |||||
Forward Contract Indexed to Issuer's Equity, Settlement Alternatives, Cash, at Fair Value | $ 450 | |||||
Treasury Stock, Shares, Acquired | 51.8 | |||||
Repurchase Plan 2014 [Member] | ||||||
CAPITAL STOCK (Share Repurchase Programs) [Line Items] | ||||||
Stock Repurchase Program, Period in Force | 2 years | |||||
Stock Repurchase Program, Authorized Amount | $ 10,000 |
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | $ (2,801) | $ (1,114) | $ (1,114) | ||
Other comprehensive (loss) income before reclassifications | (229) | (1,744) | |||
Amounts reclassified from accumulated other comprehensive loss | 12 | 9 | 57 | ||
Total Other Comprehensive Loss, Net of Tax | (217) | (475) | (1,687) | ||
Ending balance | (3,018) | (2,801) | |||
Realized net derivative (gains) losses, tax (expense) benefit | 5 | 0 | |||
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | (4) | (6) | |||
Available-for-sale Securities [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | 2 | 5 | 5 | ||
Other comprehensive (loss) income before reclassifications | (2) | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | (3) | |||
Total Other Comprehensive Loss, Net of Tax | (2) | (3) | |||
Ending balance | 0 | 2 | |||
Pension Plan, Defined Benefit [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 12 | 16 | |||
Accumulated Translation Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (2,327) | (731) | (731) | ||
Other comprehensive (loss) income before reclassifications | (229) | (1,596) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | |||
Total Other Comprehensive Loss, Net of Tax | (229) | (1,596) | |||
Ending balance | (2,556) | (2,327) | |||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (190) | (167) | (167) | ||
Other comprehensive (loss) income before reclassifications | 0 | (54) | |||
Amounts reclassified from accumulated other comprehensive loss | 4 | (1) | 31 | ||
Total Other Comprehensive Loss, Net of Tax | 4 | (23) | |||
Ending balance | (186) | (190) | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 9 | (1) | |||
Accumulated Defined Benefit Plans Adjustment [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Beginning balance | (286) | (221) | (221) | ||
Other comprehensive (loss) income before reclassifications | 2 | (94) | |||
Amounts reclassified from accumulated other comprehensive loss | 8 | 10 | 29 | ||
Total Other Comprehensive Loss, Net of Tax | 10 | (65) | |||
Ending balance | (276) | $ (286) | |||
Cost of Sales [Member] | Pension Plan, Defined Benefit [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (1) | (2) | |||
Selling, General and Administrative Expenses [Member] | Pension Plan, Defined Benefit [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 8 | 11 | |||
Foreign Exchange Contract [Member] | Net Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (4) | (7) | |||
Foreign Exchange Contract [Member] | Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | (7) | 0 | |||
Commodity Contract [Member] | Cost of Sales [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 17 | 3 | |||
Interest Rate Contracts [Member] | Interest Expense [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3 | 3 | |||
Inventory [Member] | Pension Plan, Defined Benefit [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | |||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | [1] | $ 4 | $ 5 | ||
|
EARNINGS PER SHARE (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Earnings Per Share [Abstract] | ||
Weighted-Average Number of Common Shares | 454.1 | 484.4 |
Dilutive Potential Common Shares | 3.2 | 5.0 |
Antidilutive Potential Common Shares | 4.4 | 3.3 |
Shares Excluded From Computation of Dilutive Potential Shares with Exercise Prices greater than the Average Market Price of Common Shares for the Period | 3.2 | 0.0 |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Nov. 30, 2015 |
Nov. 30, 2014 |
|
Supplemental Cash Flow Information [Abstract] | ||
Capital Expenditures Incurred but Not yet Paid | $ 73 | $ 66 |
Interest | 71 | 53 |
Taxes | $ 211 | $ 98 |
COMMITMENTS AND CONTINGENCIES ENVIRONMENTAL AND LITIGATION (Details) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Nov. 30, 2015
USD ($)
plaintiff
|
Aug. 31, 2015
USD ($)
|
|
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ||
Accrual For Environmental And Litigation Loss Contingencies | $ | $ 354 | $ 356 |
State Courts in St Louis, Missouri and Los Angeles, California [Member] | Pending Litigation [Member] | Personal Injury Lawsuits [Member] | ||
Accrual For Environmental And Litigation Loss Contingencies [Abstract] | ||
Loss Contingency, Number of cases | plaintiff | 30 | |
Loss Contingency, Number of Plaintiffs | plaintiff | 750 | |
Selling, General and Administrative Expenses [Member] | Pending Litigation [Member] | SEC Financial Reporting Investigation [Member] | ||
Gain (Loss) Related to Litigation Settlement [Abstract] | ||
Litigation Settlement, Expense | $ | $ 80 |
COMMITMENTS AND CONTINGENCIES OFF-BALANCE SHEET ARRANGEMENTS (Details) $ in Millions |
Dec. 31, 2013
USD ($)
|
---|---|
Bond [Member] | |
Off Balance Sheet Arrangement [Line Items] | |
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 470 |
SEGMENT AND GEOGRAPHIC DATA (Details) $ in Millions |
3 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2015
USD ($)
segment
|
Nov. 30, 2014
USD ($)
|
||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Number of Reportable Segments | segment | 2 | ||||||||||||
Net Sales | [1] | $ 2,219 | $ 2,870 | ||||||||||
Gross Profit | 901 | 1,411 | |||||||||||
EBIT | [2],[3],[4] | (274) | 427 | ||||||||||
Depreciation and Amortization Expense | 181 | 182 | |||||||||||
Income from operations of discontinued businesses | 20 | 26 | |||||||||||
Reconciliation of EBIT to Net Income [Abstract] | |||||||||||||
EBIT | [2],[3],[4] | (274) | 427 | ||||||||||
Interest Expense — Net | 109 | 77 | |||||||||||
Income Tax Provision | [5] | (130) | 107 | ||||||||||
Net (Loss) Income Attributable to Monsanto Company | (253) | 243 | |||||||||||
Corn seed and traits [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 745 | 928 | ||||||||||
Gross Profit | 366 | 525 | |||||||||||
Soybean seed and traits [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 438 | 396 | ||||||||||
Gross Profit | 302 | 277 | |||||||||||
Cotton seed and traits [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 48 | 83 | ||||||||||
Gross Profit | 25 | 58 | |||||||||||
Vegetable seeds [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 138 | 155 | ||||||||||
Gross Profit | 40 | 64 | |||||||||||
All other crops seeds and traits [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 30 | 59 | ||||||||||
Gross Profit | (5) | 17 | |||||||||||
Total Seeds and Genomics [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 1,399 | 1,621 | |||||||||||
Gross Profit | 728 | 941 | |||||||||||
EBIT | [2],[3] | (333) | 43 | ||||||||||
Depreciation and Amortization Expense | 149 | 150 | |||||||||||
Reconciliation of EBIT to Net Income [Abstract] | |||||||||||||
EBIT | [2],[3] | (333) | 43 | ||||||||||
Agricultural Productivity [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | [1] | 820 | 1,249 | ||||||||||
Gross Profit | 173 | 470 | |||||||||||
Total Agricultural Productivity [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net Sales | 820 | 1,249 | |||||||||||
Gross Profit | 173 | 470 | |||||||||||
EBIT | [2],[3] | 59 | 384 | ||||||||||
Depreciation and Amortization Expense | 32 | 32 | |||||||||||
Reconciliation of EBIT to Net Income [Abstract] | |||||||||||||
EBIT | [2],[3] | $ 59 | $ 384 | ||||||||||
|
SUBSEQUENT EVENT (Details) - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 07, 2015 |
Nov. 30, 2015 |
Nov. 30, 2014 |
Aug. 31, 2015 |
|
Subsequent Event [Line Items] | ||||
Dividends Declared per Share | $ 0 | $ 0 | $ 2.01 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Dividends Declared per Share | $ 0.54 |
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